São Paulo, December 20, 2024 – IFC, a member of the World Bank Group, and Banco Daycoval, one of Brazil's leading mid-sized banks in the corporate credit market, have just signed a $460 million loan agreement (equivalent to BRL 2.8 billion) to stimulate credit for female entrepreneurship and micro, small, and medium enterprises (MSMEs), particularly in the Legal Amazon region.
The financing package led by IFC, with a term of three and a half years, includes $150 million from IFC's own resources and $310 million mobilized from 14 other financial institutions. This syndicated financing contributes to Daycoval's strategy of diversifying its funding sources and strengthening partnerships with foreign multilateral institutions. include: Bancaribe Curacao Bank, N.V., Bancaribe International Bank, Inc., Bradesco Bank, Banco de Occidente Panama, Banco Itaú BBA, Banco Santander, BBVA, BHD International Bank (Panama) S.A., BLADEX, BlueOrchard managed fund, CaixaBank, Commerzbank Aktiengesellschaft, and ICBC, among others.
Banco Daycoval will use the funds to lend to MSMEs, aiming to allocate at least 25% of the total to finance women-led businesses and 10% to MSMEs in the Legal Amazon. This project will be IFC's first loan to a commercial bank in Brazil with a predefined allocation for the Legal Amazon region.
MSMEs are crucial for economic competitiveness and inclusion in emerging markets, significantly contributing to employment and economic resilience. However, they face significant obstacles in accessing financing, with an estimated gap of $4.5 trillion in emerging markets, including $1.2 trillion in Latin America and the Caribbean. In Brazil, this gap represents 27.2% of GDP, restricting MSMEs' ability to be competitive and grow.
In the Legal Amazon and other underserved regions of Brazil, the offer of credit by private institutions is significantly lower compared to other regions of the country, exacerbating regional disparities. Promoting greater financial inclusion in these areas will allow MSMEs greater access to basic goods and services and generate employment opportunities, helping to reduce income and employment disparities. To address this financing gap for MSMEs, IFC has been working with local financial institutions with expertise in this market segment to promote the growth of MSMEs in strategic regions, thereby promoting economic and social development for Brazil as a whole.
"Our long-standing partnership with Banco Daycoval has allowed us to expand access to credit for micro, small, and medium enterprises, which are crucial for job creation and prosperity in the country," said Manuel Reyes-Retana, IFC's Regional Director for South America. "This new investment, focusing on the Legal Amazon region, aligns perfectly with IFC's strategy to foster sustainable growth in the Amazon as a means to promote inclusive economic development throughout Brazil," he added.
"This investment reinforces Banco Daycoval's role as a transformative agent in the Brazilian financial market, contributing to sustainable economic development and social inclusion in historically underfunded regions and sectors," emphasized Paulo Saba, Investor Relations Director at Banco Daycoval.
About Banco Daycoval
Banco Daycoval is a financial institution with 56 years of experience specializing in the corporate credit and services segment, with significant operations in retail through payroll loans, vehicle financing, foreign exchange, and investments. Headquartered in São Paulo (capital), the bank has 3,774 employees.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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