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Unibanco - Infrastructure Credit Facility
The project consists of an infrastructure finance facility (the "Facility" or the "ICF"), comprising an A Loan of up to US$50 million and a B Loan of approximately US$100 million to be syndicated in multiple tranches, to be extended to Unibanco - União de Bancos Brasileiros, S.A. Proceeds of the Facility will be used to provide medium and long term financing to domestic infrastructure projects carried out by Brazilian companies including Brazilian subsidiaries of companies incorporated in IDB member countries.

The Facility is part of a broader initiative from the Bank to address the significant reduction in flows of private direct investment and lending to infrastructure projects in Brazil, thus supporting the government's efforts to improve the country's coverage of its public utilities services as outlined in the Country's 2004-2007 Multiyear Investment Plan.

Project Detail

Country

Brazil

Project Number

BR0411

Approval Date

February 4, 2004

Project Status

Cancelled

Project Type

Loan Operation

Sector

-

Subsector

-

Lending Instrument

BID Invest

Lending Instrument Code

IIC

Modality

PSL (Private Sector Loan)

Facility Type

-

Environmental Classification

-

Total Cost

USD 150,000,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 50,000,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
1529A/OC-BR Non-Sovereign Guaranteed USD - United States Dollar Ordinary Capital Private Sector Financing
1529B/OC-BR Non-Sovereign Guaranteed USD - United States Dollar Ordinary Capital Participant Financing
Operation Number 1529A/OC-BR
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Private Sector Financing
Operation Number 1529B/OC-BR
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Participant Financing

Can’t find a document? Request information

Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-917344851-58
Unibanco Infrastructure Credit Facility [409652].PDF
Published Dec. 31, 1999
Download
https://www.iadb.org/document.cfm?id=EZSHARE-917344851-59
Unibanco Infrastructure Credit Facility [409655].PDF
Published Dec. 31, 1999
Download

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Publications
Published 2024
Taxation when Markets are not Competitive: Evidence from a Loan Tax
We study the interaction of market structure and tax-and-subsidy strategies utilizing pass-through estimates from the unexpected introduction of a loan tax in Ecuador, a quantitative model, and a comprehensive commercial-loan dataset. Our model generalizes bank competition theories, including Bertrand-Nash competition, credit rationing, and joint-maximization. While we find the loan tax is distortionary, neglecting the possibility of non-competitive lending inflates estimated tax deadweight loss by 80% because non-competitive banks internalize some of the burden. Conversely, subsidies are less effective in non-competitive settings. If competition were stronger, tax revenue would be 10% lower. The findings suggest that policymakers should consider market structure in tax-and-subsidy strategies.
Publications
Published 2024
The Promises of Digital Bank Accounts for Low-income Individuals
The push for adopting digital modes of payment rests on three promises: increased efficiency of transactions, increased financial inclusion, and improvements in the financial well-being of low-income individuals. We experimentally test the extent to which these promises are fulfilled. We exploit the random assignment into an intervention to encourage direct deposits of recurrent government benefits into digital bank accounts in Colombia. Switching from cash to direct deposits reduces disbursement errors and increases access to benefits among eligible beneficiaries. It also increases the ownership of bank accounts, the demand for formal loans, and loan take-up among individuals without a financial history. However, we do not find evidence of improvements in financial well-being across any of our metrics.
Publications
Published 2023
MICI Reflections: Access to Remedy and Dispute Resolution: Contributions to the Conversation Based on MICI's Experience
The notion of remedy has gained importance and become a central issue on the international development agenda, despite accountability mechanisms and financial institutions have been subject to continued criticism in terms of their ability to provide effective remedy for communities claiming to be affected by development projects. This note aims to explore the role of alternative dispute resolution in access to remedy, and to specifically examine the contributions that MICIs Consultation Phase has made in providing solutions to communities that believe they have been adversely affected by IDB Group-financed development projects between 2017 and 2022.
Publications
Published 2021
Structuring for Exit: New Approaches for Private Capital in Latin America
Structured financing solutions encompass a range of investment approaches that provide liquidity to investors without the need for a traditional equity exit event, such as a strategic sale, sale to another financial investor, or public market listing. Structuring mechanisms across the debt-to-equity spectrum determine the exit terms of the deal, therefore providing considerable downside protection to investors. Structured financing solutions are an incipient but increasingly important set of tools for investors active in Latin America to address the financing gap for companies that lack access to bank financing and are not attractive targets for traditional PE and VC players. Many investors employing these strategies are in an experimental phase, reporting new lessons learned with each deal completed. Impact investors have been among the top drivers of these structuring innovations, as they have grappled with the additional limitations associated with the straight equity model for environmental or social enterprises. However, the use of structured financing is by no means restricted to the impact investing space. Fund managers have invested USD4b in private credit deals in Latin America since 2018, more than the previous ten years combined. PE and VC investors have also increasingly employed quasi-equity and debt instruments. ACON Investments, for example, has employed mezzanine structures in several deals from its latest funds. Brazil-focused venture capital firm SP Ventures has recently begun investing from its debut venture debt fund. Growing experimentation by fund managers demonstrates the opportunity for investors across ticket sizes, strategies, and the impact-to-commercial spectrum. The structures discussed and the case studies highlighted in this report contain some of the major lessons applicable to a wide group of private capital investors in Latin America targeting certain and timely exits with consistent returns.
Publications
Published 2020
Innovations in Commercial Finance for the Water and Sanitation Sector: The Potential of Investment Platforms for Mobilizing Financing for Development at Scale
Massive amounts of investment are needed to meet the United Nations Sustainable Development Goals for water supply and sanitation. However, several challenges have limited the ability to mobilize commercial finance for the sector, including a complex political economy, high transaction costs and an unclear regulatory environment. Investment platforms are an online tool for bringing together investors and investees more efficiently. While they began as a way to simplify the trading of publicly held stocks, a wave of innovative fintech investment platforms are increasing investment in numerous sectors. Translating this innovation to the water and sanitation sector could help address the challenges that have limited private investment in the sector. An effective investment platform for water and sanitation would need to provide transparency, traceability, auditability, analytics and standardization, and could be extended to support emerging fintech innovations, including blockchain and crowdfunding. Governments and donors can support the development of investment platforms for water and sanitation by encouraging pilot initiatives and creating a supportive regulatory environment.
Publications
Published 2021
Do Slum Upgrading Programs Impact School Attendance?
This paper analyzes how slum upgrading programs impact elementary school childrens attendance in Uruguay. We take advantage of the eligibility rule that deems slums eligible for a SUP program if they have 40 or more dwelling units. Using a fuzzy regression discontinuity estimator, we find that students exposed to SUPs are 17 percent less likely to be at the 90th percentile of the yearly count of school absences. That effect appears to be driven by how SUPs impact girls. These interventions have effects that last for more than five years after their implementation. We discuss some critical urban and education policy implications of our findings.
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