Brazil: IFC Invests $300 Million in Bradesco to Expand Access to Finance for Micro, Small, and Medium Enterprises
IFC, a member of the World Bank Group, is providing a $300 million financing package for Bradesco, one of the largest private banks in Brazil, to boost the expansion of access to finance for micro, small and medium enterprises (MSMEs), helping to foment the growth of a critical sector of the Brazilian economy.
IFC’s financing package consists of a three-year $150 million loan from IFC’s own account, and a three-year $150 million loan syndicated by Banco Santander. This is IFC’s second investment in Bradesco directed to support the growth of credit to MSMEs operating in Arranjos Produtivos Locais - APLs (local productive arrangements, in a free translation). The first investment, of $375 million, was committed in December 2015. APLs are clusters of companies organized by the Brazilian government according to geographic areas and specific productive activities. They gain leverage through cooperation and articulation amongst themselves to achieve economies of scale and gains in competitiveness.