Andrews Kurth Represents IDB in Financing for Banco de Desenvolvimento de Minas Gerais

(Washington, DC)—On March 28, 2014, at a signing ceremony of the annual meeting of the Inter-American Development Bank (“IDB”) in Costa Do Sauípe, Bahia, Brazil, presided by IDB’s president, Luis Moreno, IDB established a risk sharing guarantee facility (the “Facility”) in Brazil for the benefit of Banco de Desenvolvimento de Minas Gerais (“BDMG”), the development bank of the state of Minas Gerais. The Facility is structured in two phases, with the first phase established for an amount up to Reais 10,500,000. IDB will provide partial credit guarantee support under the Facility by sharing a portion of the credit risk exposure of new loans made by BDMG to microenterprises and individual microentrepreneurs underwritten with an innovative hybrid credit methodology using BDMG and Enterprise Finance Lab (EFL) loan scoring methods. The project developed by IDB’s Opportunity for the Majority Initiative will provide credit support for BDMG to launch a financing program for new microenterprises and microentrepreneurs from the Base of the Pyramid in Minas Gerais—the first in Brazil to apply the EFL methodology.

The U.S. based firm of Andrews Kurth LLP and the Brazilian firm Dias Carneiro, Arystóbulo, Flores, Sanches e Thomaz Bastos Advogados advised IDB on the transaction.

Andrews Kurth Lawyers:

Vera Rechsteiner, Partner

Paul Sève, Of Counsel

Siddharth "Sid" Sethy, Associate

IDB In-house Counsel:

Martin Stalman

IDB Local Counsel:

Dias Carneiro, Arystóbulo, Flores, Sanches e Thomaz Bastos Advogados

Thiago Vallandro Flores, Partner

Gustavo Junquiera, Associate

Andrea de Sousa Machado, Associate

BDMG In-house Counsel:

Carolina Marinho do Vale Duarte

As released by the former Andrews Kurth Kenyon LLP