IFC Lends $460 Million to Daycoval to Support Small and Medium Enterprises, Focusing on Female Entrepreneurship and the Legal Amazon
Summary
S\xe3o Paulo, December 20, 2024 IFC, a member of the World Bank Group, and Banco Daycoval, one of Brazils 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 IFCs own resources and $310 million mobilized from 14 other financial institutions. This syndicated financing contributes to Daycovals strategy of diversifying its funding sources and strengthening partnerships with foreign multilateral institutions. 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, IFCs Regional Director for South America. "This investment reinforces Banco Daycovals 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.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.