On November 23, 2010, the Inter-American Development Bank (“IDB”) closed on a syndicated dual currency (US$115 million and €18 million) A/B loan to Brazil’s Banco Sofisa. The proceeds of the loan are to be used to increase lending to small- and medium-sized enterprises in Brazil. The syndication to some 15 U.S., Brazilian and European banks was co-arranged by IDB and Banco Itau, with HSBC, Banco do Brasil and Standard Bank as bookrunners. The transaction involves a five-year IDB $25 million A loan and a syndicated B loan composed of four tranches: two denominated in U.S. dollars for a total amount of $90 million, and two denominated in Euros for a total amount of €18.6 million. The syndicated loans mature in two and three years.
The U.S. based firm of Andrews Kurth LLP and the Brazilian firm, Dias Carneiro Advogados advised the IDB on the financing.
