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| Anhanguera Edu |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28097 |
| Company name | Anhanguera Educacional S.A. |
| Country | Brazil |
| Sector | Education Services |
| Environmental category | B |
| Department | Health and Education |
| Status | Pending Approval |
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| Date SPI disclosed | August 6, 2009 |
| Projected board date | September 15, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Anhanguera Educacional Participações S.A. (the “Company” or “AES”) is Brazil’s leading private, for-profit professional education company. The Company delivers education services through its: i) campus network (Anhanguera Educacional); ii) vocational training centers (Microlins); and iii) distance learning platform (Anhanguera/LFG).
The majority of AES’s students are young working adults from middle and low-income backgrounds. The Company focuses on delivering the market’s best combination of quality and value through: i) conveniently located campuses; ii) standardized and updated curricula; iii) qualified faculty; and iv) strict quality control.
Management’s growth strategy focuses on growing its on-campus students, distance learning, and vocational training units. IFC’s proposed investment consists of an A Loan for up to approximately $25.0 million (R$50 million) to partially fund its growth over the next year.
Founded in the early 1990’s from a single college, the Company today is the largest post-secondary education institution in Brazil, with an average enrollment of 141,000 students in 2008 distributed across 52 campuses and 450 distance-learning centers. With an additional 500,000 students/year in vocational training programs, AES has educated over 700,000 young working adults in Brazil in 2008, more than any other education institution in the Americas. |
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| Project sponsor and major shareholders of project company |
| Fundo de Educação para o Brasil, a single asset fund managed by Banco Patria, is AES’s controlling shareholder. Banco Patria has an established track record in Brazil. The firm focuses on sectors where Brazil has a competitive advantage (agribusiness and commodities, for example) and/or sectors where consumer demand is likely to stay relatively strong, even in economic downturns (health and education, especially). In 2007, AES listed its shares in the São Paulo stock Exchange (“Bovespa”) and today approximately 43% of the Company’s shares are traded. |
| Total project cost and amount and nature of IFC's investment |
| The total amount of investments to fund the expansion of the Company’s network is estimated at R$300 million (approximately US$150 million) over the next 12 to 18 months. IFC is considering an A Loan for up to R$50 million (approximately US$25.0 million), which represents approximately 17% of the project cost. In addition, IFC is mobilizing an additional R$50 million from other international financial institutions. |
| Location of project and description of site |
| Anhanguera is already present in every state in Brazil through its network of campuses and distance learning centers. The Company’s planned expansion will increase its reach in a number of small and medium sized cities across the country. |
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| Anticipated development impact of the project |
| The project will have significant development impact by: i) increasing access to quality post secondary education, especially for lower income students; ii) enhancing efficiency and rationalization of the sector in Brazil; (iii) attracting other investors to the still underinvested education sector; and (iv) promoting vocational training. |
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| IFC's expected development contribution |
| One of the pillars of IFC’s global Health and Education strategy is to support health and education projects with strategic clients, predominantly larger, for profit providers which have the ability to grow and operate in several markets, move down-market to reach lower income households, create centers of excellence and provide employment opportunities for skilled professionals. AES, given its reach, focus on low income students and national footprint in Brazil, is a perfect fit with the profile of our strategic clients. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
Key environment, health and safety and social aspect of the project which were analyzed during IFC’s review were:
- Management Systems
- Construction and operation of any new campuses
- Employee and Student health and safety activities
- Life and fire safety
- Labor and working conditions
- Energy conservation
- Solid waste management
- Site Selection
- Land Acquisition
- Permitting. |
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| For inquiries about the project, contact: |
Marcos Guimãraes Jr.
CFO
marcos.guimaraes@unianhanguera.edu.br
Tel. +55 19 35121777
Jose Augusto Teixeira
Director of Strategic Planning and Investor Relations
jose.teixeira@unianhanguera.edu.br
Tel. +55 19 3512 1700 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Project information will be made at the following locations:
Marcos Guimãraes Jr.
CFO
marcos.guimaraes@unianhanguera.edu.br
Tel. +55 19 35121777
Jose Augusto Teixeira
Director of Strategic Planning and Investor Relations
jose.teixeira@unianhanguera.edu.br
Tel. +55 19 3512 1700 |
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