Divitia FIM Crédito Privado

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The proposed project involves supporting Divitia Investimentos Ltda. (the “Fund Manager”) in raising and structuring Divitia FIM Crédito Privado Fund (the “Fund” or “Project”), a credit opportunity fund (“COF”). This capital market vehicle will mobilize local institutional investors to provide financing for domestic mid-size corporates that are underserved by the local banking sector. As part of IFC’s Capital Market Development Strategy, the project has the potential to enhance capital market development in Brazil by channeling more capital flows than in the past from local institutional investors into under developed credit markets, enhancing capital market liquidity, extending available credit tenors, and supporting further primary issuance of new credit assets as well as its secondary market in the country. The Fund can influence the local industry and set up high standards as well as performances that may consolidate the COFs as a new investible asset class for local institutional investors.