BICBanco II

completed

_x000C_Banco Industrial e Comercial S.A. (BIC or the Bank) is a privately-held bank founded in 1938. With assets of $3.1 billion and equity of $255 million as of June 2006, BIC is among the leading mid-sized Brazilian banks operating in the middle market segment, ranking 12th and 17th among private-sector banks in terms and total loans of total assets, respectively. The Bank’s strategy is focused on corporate lending to middle market companies ($13 million to $130 million in annual sales) with a portfolio of over 5,000 clients in various regions of Brazil. It also grants loans to individuals, mainly through consigned credit (payroll-deducted) to public-sector employees and pensioners. The project involves a subscription by IFC of a cross-border, local currency-denominated note (the Note) to be issued by BIC for an amount of up to $40 million-equivalent. The Note proceeds will be used to support the Bank’s lending activities involving small and medium-sized companies.