Banco do Brasil

repaid

The proposed financing consists of an A/B senior unsecured loan of approximately US$500 million to Banco do Brasil S.A (“BdB” or the “Bank”) as follows: (i) IIC A loan of up to US$30 million to be funded by the IIC; (ii) IDB A loan of up to US$70 million to be funded by the IDB; and (iii) B loan expected to be of approximately US$400 million to be funded through the sale of participations to commercial lenders (the “Financing”). The term of the IIC A loan and the IDB A Loan is expected to be up to 5 years with up to one year of grace.This Project constitutes the first commercial financing in which BdB has worked with a multilateral institution and the first time that it will enter into an A/B loan agreement, though BdB has participated in several IIC-led A/B loans as a B lender and, in this context, has always had an excellent relationship with the IDB Group.The Financing is intended to support BdB in increasing access to financing for micro and small enterprises (MSEs) involved along the agribusiness value chain in Brazil. Specifically, the A loan will be dedicated to serving those MSEs operating in underserved areas of the country, including the Northeast, while the B loan will work with agribusiness MSEs throughout the country. In addition, the IIC will seek to support BdB with advisory services focused on its microentrepreneur clients on issues of financial education.