Daycoval III

completed

Established as a multiple bank in 1989 and listed at Bovespa stock exchange since June 2007, Banco Daycoval S.A. (Daycoval or the Bank) is one of the leading mid-sized Brazilian banks operating in the middle market segment. Daycoval had more than 2,000 active SME clients and assets of R$ 6.8 billion as of December 2008.The project involves the subscription by IFC, funds managed by Cartesian Capital Group, LLC, and Wolfensohn Capital Partners, L.P. (the Investors), and members of the Dayan Family, of warrants of common and preferred shares to be issued by the Bank, through the investment by the Investors in Deposit Certificates (“CDB”) in an amount of up to BRL 400 million. The investment’s main purposes are: (a) to strengthen the funding basis of the Bank in order to enable the expansion of its credit portfolio within the middle market segment; (b) to diversify its funding sources; and (c) to enable leading global investors to hold warrants of preferred shares of the Bank.