Banco Fibra requests US$47.8mn financing from IFC

- Friday, March 18, 2011

Banco Fibra requests US$47.8mn financing from IFC

Brazilian midsize lender Banco Fibra is seeking up to 80mn reais (US$47.8mn) in funding from the World Bank private sector arm IFC in the form of a capitalization for a project totaling 240mn reais.

The remaining 160mn reais would be subscribed by Fibra's controlling Vicunha group - for 80mn reais - and other investors, which may include the IFC African, Latin American and Caribbean Fund, managed by IFC Asset Management Company, according to the investment proposal on IFC's website.

Fibra is seeking IFC funds "to ensure the sustainable growth of its lending business and accomplish its diversification strategy."

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IFC has a 7.92% stake in Banco Fibra, which it entered in 2007.

In October last year, the bank detected double-counting of its revenues related to its currency hedging positions at its Cayman Islands branch worth 114mn reais, forcing the controlling group to make a 92.1mn-real capital injection.

The IFC board will consider the request on April 20.