Indusval’s history dates back to 1971, when the Ciampolini and Ribeiro families began to operate in the financial markets through the acquisition of Indusval S.A. Corretora. In 1991, Indusval became a multi-service bank operating with small and medium size companies, which remains the core business of the Bank. In 2003, Indusval merged with Banco Multistock S.A to form what is now Banco Indusval S.A. At present, the Bank is 64.4% owned by the Ribeiro, Ciampolini, and Cintra Neto families and the remaining 33.6% shares are listed at the BOVESPA stock exchange.

The proposed project entails an up to $75 million A/B loan financial package to help Banco Indusval grow its operations in the SME segment, with a particular focus on companies located outside the main economic hubs of the country.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

Banco Indusval S/A is headquartered in São Paulo and operates through 11 branches distributed in the regions with main concentration of middle-market enterprises. These branches cover all the economic regions of Brazil with exception to the Northern region (low middle-market enterprises density):

Southern Region: Porto Alegre, Curitiba and Maringá;
Southeastern Region: São Paulo, Campinas, Rio de Janeiro, Belo Horizonte and Uberlandia;
Central Western Region: Campo Grande and Goiania; and
Northeastern Region: Recife

Indusval has expertise in credit operations secured by collateral, particularly involving SME borrowers, and has posted an impressive growth rate in recent years. In this context, the project will help Indusval:

- expand its operations into SME segment, which is still poorly served by banks, with a special focus on underserved regions of the country and
- through the B loan, expose the bank to a new set of international investors, expanding its funding network.

The two major development impacts embedded in this project are:

- making additional credit resources available to the both underserved SME segment, and
- helping maintain a competitive environment in the concentrated Brazilian banking sector.

The project will support the growth and the expansion of the Bank’s operation in an underserved segment of the market by offering it both: long-term local currency funding, which is not readily available in Brazil, and through the B Loan structure will expand Bank’s network Bank with international investors, helping it to diversify its funding base.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC will analyze the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List(s); and/or
- The applicable National Environmental and Social Laws and regulations; and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of the FI to manage environmental and social risks and to establish and maintain a social and environmental management system (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS. Based on the review, the project will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC.