Utilizing the Private Sector Development Trust Fund for Latin America and the Caribbean (commonly known as TADAC) (Note), in which the Japan International Cooperation Agency (JICA) has an equity stake, the Inter-American Investment Corporation (IDB Invest) signed a loan agreement with Banco ABC Brasil S.A., a bank that is expanding financial services to medium-sized businesses in the Federal Republic of Brazil. The loan agreement was signed on May 26, 2012. IDB Invest and TADAC will provide a total of US$50 million in financing for the project, with an additional US$50 million to be provided by the Canadian Development Finance Agency (FinDev Canada).
Brazil’s medium-sized enterprises play an important role in job creation and economic stability in the country. In particular, while women’s participation in entrepreneurship and business management is increasing, financing constraints remain an issue. This project will contribute to Japan’s economic security through the stabilization of Brazil, a strategic global partner and an important resource and food supplier, by supporting the financial needs of such women-owned medium-scale enterprises. It is also expected to promote the overseas expansion of Japanese companies through the expansion of local business infrastructure.
(Note) JICA has committed US$1 billion to the Trust Fund Achieving Development of Latin America and the Caribbean (TADAC), a trust fund established by the Inter-American Development Bank (IDB), the largest development finance institution in Latin America and the Caribbean, and managed by IDB Invest, the private sector investment and lending arm of the IDB Group. TADAC will co-finance the private sector’s efforts to achieve the SDGs in line with IDB Invest’s co-financing. JICA will use its overseas investment and financing to invest in TADAC to help close the financing gap needed to achieve the SDGs in Latin America and the Caribbean and contribute to sustainable socioeconomic development in the region.
Medium-sized Brazilian businesses supported by loans for Banco ABC through TADAC
Loan recipient
Banco ABC Brasil S.A. (Banco ABC)
Country (region covered)
Federative Republic of Brazil
Loan amount (maximum)
US$25 million
Project Name
Project to support medium-sized enterprises run by women
Business Objectives
The project will improve access to finance for small and medium-sized enterprises (SMEs) and strengthen financial inclusion efforts by expanding the provision of financial services to medium-sized enterprises, including women business owners in Brazil, through a long-term loan to Banco ABC.
Business Overview
The project’s loans will be sub-loaned from Banco ABC to medium-sized enterprises, including women-owned enterprises in Brazil.
Contribution to SDGs
Goal 5 (Achieve gender equality)
Goal 8 (both job satisfaction and economic growth)
Goal 9 (Create a foundation for industry and innovation)
Goal 17 (Let’s achieve our goals in partnership)
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