ICBC participates in $278 million syndicated B loan agreement with Daycoval for on-lending purposes in December 2019

In December 2019, Banco Daycoval S.A. — a privately owned bank in Brazil — signed a 4-year, $150 million ‘A loan’ agreement with Inter-American Investment Corporation ("IDB Invest"), the private sector division of the InterAmerican Development Bank, and a 2-year, $278 million syndicated ‘B loan’ agreement with a group of Chinese and non-Chinese lenders for on-lending purposes. The ultimate purpose of the loan, which carries a 2-year maturity, is to strengthen and expand Banco Daycoval S.A.'s credit portfolio focused on female entrepreneurship and small and medium-sized enterprises (SMEs), mainly from underserved areas of Brazil. Participants in the loan syndicate include Itaú BBA International Plc, Banco Santander S.A., Banco Latinoamericano de Comércio Exterior S.A., Industrial and Commercial Bank of China Limited (ICBC), Blue Orchard Microfinance Fund, Cargill Financial Services International, Inc., Wells Fargo Bank, N.A., Commerzbank AG, Standard Chartered Bank, Banco de Occidente (Panamá) S.A., BHD International Bank S.A., Bradesco BAC Florida Bank and Caixabank, S.A., and Inter-American Investment Corporation ("IDB Invest"), the private sector division of the InterAmerican Development Bank. IDB Invest will provide advisory services to Daycoval to improve its gender equality and diversity inclusion programs. In addition, IDB Invest will guide Daycoval in identifying opportunities in their recruitment and talent development, as well as in their purchasing and procurement processes.

Additional details

1. The size of ICBC’s contribution is unknown. For the time being, AidData assumes equal contributions ($21,384,615) across the 13 participants in the syndicate. 2. For over 50 years, Banco Daycoval S.A. has been providing credit to Brazilian companies of various sizes and sectors. At the end of September 2021, the expanded loan portfolio totaled R$ 41.0 billion, including auto, payroll and home equity loan portfolios. Daycoval is present in 21 states and the Federal District through 46 branches, moreover Daycoval is one of the leaders in the foreign exchange market, with 161 FX shops across the country. Or anywhere at anytime, at its clients’ fingertips through the Dayconect app or the Daycoval Digital investment platform. In 9M21, Daycoval reached an YTD net income of R$ 1,068.0 million, a return on equity (ROAE) of 28.6%, a return on average assets (ROAA) of 2.7% and a Basel III ratio index of 14.0%.

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