IFC arranges more loans in Brazil
December 18, 2018 |
Multilateral agency arranges $300m for Bradesco to increase small business loans and also oversees $94m for Farmoquímica-Divcom merger
IFC has arranged a $300m loan for the Brazilian bank Bradesco to increase loans to small businesses and also organized BRL365m ($93.7m) in financing for the merger of Farmoquímica and Divcom Pharma.
The three-year loan for Bradesco involves $150m from IFC's own account and a $150m syndicated loan led by Santander. IFC committed $375m in financing in December 2015 for Bradesco to increase loans to micro, small and medium-sized businesses.
Small businesses in Brazil account for 27% of GDP and 54% of formal jobs, but they also have around $626bn, or 30% of GDP, in unmet financing needs, IFC said in a press release. Bradesco has provided some $7.9bn in financing for small businesses in the past seven years, IFC added.
The three-part loan for the Farmoquímica-Divcom merger involves an eight-year, BRL65.1m loan and a six-year, BRL31m loan from IFC's own account. It also includes the BRL269m debt sale that Divcom carried out on December 13. The pharmaceutical company, which folded into Farmoquímica in September 2017 and created FQM, sold six-year debentures at 2.3% over the DI interbank rate in a deal led by Bradesco BBI.
IFC said supporting the Farmoquímica-Divcom deal will expand access to over-the-counter medicines in Brazil, including the poorest regions.