Banco Fibra is controlled by the Vicunha Group, with a 92.1% share of capital stock. Vicunha Group has more than 40 years experience operating in Brazil, it also controls Vicunha Textiles and the steel-maker Companhia Siderúrgica Nacional (CSN), two of the largest Brazilian corporations in their respective industries. In 2007, IFC also became a shareholder of the bank, holding the remaining 7.9% share of capital stock. Fibra is an existing IFC client with positive track record.

The total project cost is estimated at $90 million. The proposed investment entails: An up to $15 million local currency indexed IFC A Loan; A $75 million B-Loan, which IFC would syndicate to international banks.

15.0 million (USD)

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

* These investment figures are indicative

Fibra is headquartered in São Paulo, Brazil. The sales team is distributed through 14 branches (including São Paulo) in 10 states across Brazil, providing coverage for a wide range of small and middle market businesses in the country.

Fibra has expertise in credit operations, particularly involving SME borrowers. The two major development impacts embedded in this project are: (i) expanding access to credit to underserved SME segment; and (ii) helping maintain a competitive environment in the concentrated Brazilian banking sector.

IFC will provide long-term funding, which will help the bank diversify its funding base and expand its operations in an underserved segment of the market (SMEs). Moreover, the project, through the B loan, will mobilize resources from participant banks and will broaden Fibra's network of commercial relationships. Finally, with this new project, IFC will reinforce its stamp of approval on Banco Fibra; sending a positive signal to the market on this mid-sized bank.

This project involves IFC support for Fibra''s lending to SMEs and has been classified as a Category FI project. Banco Fibra is an existing client and in compliance with IFC environmental and social requirements. Fibra has developed a satisfactory Social & Environmental Management System (SEMS) and has appointed an Environmental Coordinator with the responsibility for the SEMS implementation.

During the project, IFC will review Fibra''s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions and its recent portfolio. If required, IFC will suggest Supplemental Actions to address any gaps. This project will require Fibra to: (i) continue to implement its SEMS, to ensure that its investments/activities are in compliance with the IFC FI Exclusion List and applicable national social and environmental laws and regulations; (ii) demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and (iii) continue to submit a periodic report to IFC as per a format to be provided by IFC.