News Column

BBM Agri

May 10, 2014



Project Status : Active Project number : 34243 Region : Latin America and the Caribbean Company name : BBM Country : Brazil Sector : O-AA - Commercial Banking - General Department : Reg Ind, Financial Markets, CAF/CLA Environmental category : FI2 Status : Pend FAP Date SPI disclosed : May 7, 2014 Projected board date : June 9, 2014 Last Updated Date : May 7, 2014 Project Description : The Project ( BBM Agri ) will support Banco BBM S.A. s (the Bank or BBM ) plans to grow its credit portfolio aiming at providing loans to clients in the agribusiness sector in Brazil. Project Sponsor and Major Shareholders of Project Company : The Bank is owned (i) 34% by the Mariani Bittencourt family, the controlling group of BBM; (ii) 37% by BBM Holding S.A. (which is 73% owned by the Mariani Bittencourt family); (iii) 2% by others; and (iv) 27% treasury shares. Total Project Cost and Amount and Nature of IFC%s Investment : The proposed Project entails an up to US$100 million A/MCPP/B loan financial package, composed of (i) an up to US$50 million 5-year A loan, (ii) an up to US$25 million 5-year MCPP loan and (iii) an up to US$25 million 3-year B loan. The Project will support BBM s lending activities for agribusiness sector which shall be used to finance the production, marketing, processing and manufacturing of products and agricultural inputs or machinery implements used by farming, and will also include eligibility criteria related to the profile of the sub-borrower. Location of Project and Description of Site : The investment will be directed through BBM to clients, exclusively, throughout Brazil. BBM is headquartered in Rio de Janeiro. Expected Development Impact - Access to finance - IFC will help increase access to finance to medium sized corporations in Brazil as the Bank increases its loan portfolio. In addition, clients working in the agribusiness sector will benefit from a targeted line. - Increase competition - (a) IFC will improve BBM%s funding quality by conceding long-term loans, enabling long-term credit operations in the agribusiness sector, and (b) By having a targeted line to these clients, this Project will also support increase the capillarity of financing services and increase competition between banks in this sector. - Dissemination of E&S standards - IFC%s participation in this Project will help the Bank implement and promote good environmental and social standards for agribusiness in Brazil. IFC%s Expected Role and Additionality - Long-term finance - IFC will provide 5-year funding. These funds will be channeled exclusively to clients working in the agribusiness sector in Brazil. - Mobilization of funds - IFC%s participation will increase mobilization of resources through additional funding from other entities, in the form of a syndicated loan. - E&S standards - IFC will help the Bank establish strong E&S Standards in accordance with IFC Performance Standards, assisting in the development of

Project completion date : 2015-05-31 12:00:00

Major organization : BANCO BBM S/A

Address : Av. Brig. Faria Lima, 3311 15. andar SÃo Paulo, SP, Brazil Website : http://www.bbmbank.com.br/ Attn : Cassio Von Gal-Director



Country :Brazil

Email : cassiovongal@bancobbm.com.br

Financier : International Finance Corporation (IFC),

Financier address : Financier : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 United States Website : http://www1.ifc.org Tel : (202) 473-3800 Fax : (202) 974-4384


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Source: TendersInfo (India)