29916 - BIB B loan

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Summary of Proposed Investment

Project Number

29916

Company Name

BANCO INDUSTRIAL DO BRASIL S.A.

Date SPI Disclosed

Oct 21, 2010

Country

Brazil

Industry

Financial Markets

Projected Board Date

Nov 30, 2010

Status

Completed

Sector

Commercial Banking - SME Finance

Department

Global Industry, Financial Markets

Environmental Category

Previous Events

Approved : Dec 21, 2010
Signed : Dec 27, 2010
Invested : Dec 30, 2010

Project Description

Banco Industrial do Brasil S.A. (“Industrial” or the “Bank”) was established in 1994 in São Paulo, Brazil. The Bank operates in the middle market segment and its core activity is working capital lending backed by receivables. In June 2010, the Bank’s total assets reached R$2.1 billion, with a credit portfolio of R$1.1 billion and net income totaled R$19.4 million for the first semester of the year. The project involves the provision by IFC of an A Loan for an amount of up to $15 million. The project also includes a B Loan, for an amount of up to $45 million. The proceeds from the A and B Loan will be used by the Bank to expand its lending activities involving SME companies.

Sponsor / Cost / Location

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

Development Impact

Industrial has expertise in credit operations, particularly involving SME borrowers. The three major development impacts embedded in this project are: (i) expand access to credit to underserved SME segment; (ii) help maintain a competitive environment in the concentrated Brazilian banking sector; (iii) IFC Environmental and Social Standards: the Project facilitates the Bank setting up an appropriate social and environmental management system, commensurate with its business lines.

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 Industrial's network of commercial relationships. Finally, with this new project, IFC will reinforce its stamp of approval on Industrial; sending a positive signal to the market on this mid-sized bank.

This project has been classified as Category FI according to the IFC Environmental and Social Review Procedures. During the appraisal, IFC will review the client''s portfolio and the project structure to determine E&S requirements, which may include a combination of the IFC Exclusion List, the Brazilian E&S laws and regulations as well as the Performance Standards. In this process we will also assess the Bank’s labor practices according to IFC’s labor standards. The client has an existing Social & Environmental Management System (SEMS), which IFC will review during appraisal and recommend adjustments, if needed. The client will be required to; (i) maintain and/ or upgrade the SEMS; (ii) demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and (iii) submit a periodic report to IFC as per a format to be provided by IFC.

Contacts

For Inquiries About the Project, Contact

Eduardo Guimarães Av. Presidente Juscelino Kubitschek, 1703 CEP: 04543-901 - São Paulo - SP – Brazil Phone: (55 11) 3049-9772 Fax: (55 11) 3049-9810 Email: guimaraes@bancoindustrial.com.br

For Inquiries and Comments About IFC, Contact

General IFC Inquiries IFC Corporate Relations 2121 Pennsylvania Avenue, NW Washington DC 20433 Telephone: 202-473-3800 Fax: 202-974-4384E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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