The Inter-American Development Bank announced today the approval of a $150 million loan for União de Bancos Brasileiros S.A. (Unibanco) consisting of a medium and long-term line of credit to support infrastructure projects by Brazilian companies or Brazilian subsidiaries of companies of IDB borrowing member countries.
The financing consists of a loan of up to $50 million from the IDB’s ordinary capital and another sindicated loan of approximately $100 million with resources to be provided by comercial banks and other financial institutions.
This line of credit reflects a broader IDB initiative to alleviate the scarcity of direct medium and long-term private financial resources, and it is expected to have a catalyzing effect by mobilizing private sector international financing to support capital investments in basic infrastructure in Brazil.
Unibanco is the oldest Brazilian private bank, with a very diversified credit portfolio. It occupies third place in terms of assets and loans in the country and has firmly contributed to consolidate the national banking system. Unibanco has financed infrastructure in the areas of energy, water and sewage, telecommunications and transportation.
With this loan the IDB supports the private sector and at the same time contributes to the Brazilian Government’s efforts to improve and expand basic infrastructure and public services in compliance with its national investment plan for 2004-2007.