Tribanco is controlled by Almar Participações Ltda, holding controller of GMartins. GMartins is the largest private Brazilian wholesaler specializing in foods, pharmaceuticals, construction materials, white goods and electronics. GMartins was created in 1953 in Uberlândia (state of Minas Gerais), a privileged location for distribution in Brazil as it is a central crossroads and transport intersection between the South and Southern states with the Center, North and West (Amazon), the Nordeste, as well as the Atlantic coast. GMartins has a fleet of 1,143 trucks, distributes over 19,000 products, counts on a sales force of 4,900, more than 260,000 active customers and call center with more than 700 operators. Its excellent logistics capability includes 4 hub distribution centers with storage capacity of 123,000 tons and 40 advanced distribution centers. Its 2007 revenues reached R$4.0bn. Below is the shareholders structure and their respective participation in Tribanco, and Grupo Martins:

Almar Participações LTDA: 50.01% and 60.01%
Helpar Participações LTDA: 22.17% and 23.24%
Celson Martins Borges: 7.59% and 0%
Tempo Participações S/C LTDA: 2.58% and 10.67%
Oipar Participações LTDA: 5.81% and 6.08%
Bonomo Participações LTDA: 4.61% amd 0%
AMJ Participações LTDA: 3.61% and 0%
Remar Participações LTDA: 3.61% and 0%

The proposed project entails an up to $55 million A/B loan financial package to help Tribanco reach an increased number of micro and small enterprise, with a particular focus on companies located in frontier regions 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

Tribanco is Headquartered in Uberlândia, Minas Gerais. Investments under the project can be made throughout the country.

This project is expected to have a high development impact, building up on the results of IFC’s previous project with the Bank. It is expected to be significant in terms of its support for micro and small businesses and employment generation in areas and among populations that are underserved by the formal banking system. Tribanco follows GMartins to the most remote and neglected urban and rural areas of Brazil, where many people (small shops and end consumers) have virtually no access to financial services.

Moreover, through the B loan, the Bank may be exposed to a new set of international investors, expanding its funding network.

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 Performance Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List and/or
- The applicable National Social and Environmental Laws and regulations and/or
- The IFC Performance Standards

IFC will also appraise the FI’s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions. The client was supposed to develop a Social and Environmental Management System (SEMS) under a previous project (#21922) but the IFC did not receive a copy of the bank''s procedures and the 2007 Social and Environmental Performance Report. IFC will review these two documents and analyse the capacity of the FI to manage social and environmental risks. 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, maintain, or upgrade, if necessary, any existing Social & Environmental Management System (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 Performance Requirements
- Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions.

Submit a periodic report to IFC as per a format to be provided by IFC