IFC agrees $300m financing package to boost MSMEs in Brazil
The International Finance Corporation is providing a US$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-sized enterprises.
IFC's financing package consists of a three-year US$150 million loan from IFC's own account, and a three-year US$150 million loan syndicated by Banco Santander.
It represents 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 US$375 million was committed in December 2015. APLs are clusters of companies organised 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.
