IFC, a member of the World Bank Group, and Banco Industrial do Brasil S.A. (BIB) have announced a $105 million financing package to expand access to finance for micro, small, and medium-sized enterprises (MSMEs) throughout Brazil. The investment will support women-led businesses in particular and help expand financial services in the Brazilian Legal Amazon region, contributing to promoting the country’s inclusive and sustainable economic growth.
At minimum of 30% of the resources will be allocated to finance women-led small and medium-sized enterprises (SMEs), 10% will support SMEs operating in the Legal Amazon region of Brazil, and 40% will expand credit to SMEs across the country. The remaining 20% will be used to finance payroll loans in the Legal Amazon region, including those that support microentrepreneurs and undocumented businesses.
This project is particularly relevant in Brazil’s current context, where there are still significant gaps in meeting the financing needs of small and medium-sized enterprises, especially those led by women and operating in vulnerable and underserved regions, such as the Legal Amazon. MSMEs account for 98.5% of all businesses and contribute 27% of the country’s GDP, but they continue to face systemic barriers to capital, including high interest rates, a burdensome tax environment, and limited credit alternatives.
Manuel Reyes Retana, IFC’s Regional Director for South America, says, “This investment with Banco Industrial reflects IFC’s significant commitment to inclusive financing and sustainable growth in Brazil. By channeling long-term financing to women-led businesses and small and medium-sized enterprises in the Amazon, IFC is helping to create jobs, especially for underserved populations, and build a more resilient and equitable economy across Brazil.”
“We are very pleased with the success of the operation and the significant demand registered, which reinforces investor confidence in BIB and highlights the growing interest in operations aligned with the ESG agenda,” comments Guilherme Cardoso Gottardi, CFO of Banco Industrial do Brasil. “The funds raised will help BIB further expand its support for clients committed to sustainable practices and a positive impact on society,” he adds.
This is IFC’s first financing in Brazil as part of the MSME Finance Platform, a global initiative launched by IFC in 2024 involving a financial package of up to $4 billion to encourage financial institutions to direct resources to micro, small, and medium-sized enterprises (MSMEs) in emerging markets, especially those owned by women.
