The project sponsor is Swiss Re, one of the world’s leading and most diversified global reinsurers. Swiss Re holds 42.8% of the common shares in UBF; the other shareholder’s are (i) Radian (42.8%), an US-based group provider of credit enhancement mechanisms, including mortgage insurance and asset backed securities, (ii) Rio Bravo (9.5%), a local private equity and asset management firm, and (iii) management (5%).

The total capitalization plan is estimated at $33 million to be undertaken by Swiss Re and IFC. The proposed IFC investment is up to $10 million in equity.

10.51 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.51

* These investment figures are indicative

UBF is headquartered in Sao Paulo and does business throughout the country.

The project is expected to (i) increase access to private and public insurance schemes to Brazilian farmers (government and private insurance schemes reach over 2 million farmers); (ii) Support the development of new insurance products for agro-insurance; and (iii) facilitate access to finance through expanding the surety market.

IFC is expected to: (i) provide scarce long term equity capital; (ii) Provide a stamp of approval and enhance UBF’s market visibility; and (iii) provide in-house industry expertise combined with local market presence and knowledge.

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 UBF/ Swiss Re''s surety insurance 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 Exclusion List(s), the applicable National Social and Environmental Laws and regulations, and/or the IFC Performance Standards.

IFC will also appraise the client''s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions and review, if required, the capacity of the client to manage social and environmental risks and to establish and maintain a Social & 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 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