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| Mauricio Nassau |
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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 | 28755 |
| Company name | Ensino Superior Bureau Juridico S.A |
| Country |
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| Sector | Colleges, Universities, and Professional Schools |
| Environmental category | B |
| Department | Reg Manufact, Agri & Services, CAF/CLA |
| Status | Pending Disbursement |
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| Date SPI disclosed | March 25, 2010 |
| Projected board date | April 30, 2010 |
| Previous Events | Signed: June 18, 2010
Approved: May 19, 2010 |
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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 |
| Founded in Recife, Brazil, Ensino Superior Bureau Juridico S.A. (“ESBJ” or the “Company”) is a for-profit higher education company providing undergraduate, graduate and technical education to students in the North East region of Brazil. The Company targets primarily middle and low income students under two brand names Mauricio de Nassau and Joaquim Nabuco. ESBJ currently runs nine campuses in five North Eastern states and provides educational services to 25,000 undergraduate students. ESBJ requested IFC to help fund construction and upgrade of six new campuses. The proposed project aims to double the number of student enrolments to 50,000 in 2014. |
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| Project sponsor and major shareholders of project company |
| ESBJ is majority owned by Janguie Diniz (87.7%), a Brazilian lawyer and professor who founded the Company. The balance is owned by Cartesian Capital Group (11.3%), a private capital group based in New York and Janyo Deniz (1%), brother of the founder and the CEO of the Company. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is $ 47 million. The proposed IFC investment is an A Loan of $15 million and a C loan of $10 million. |
| Location of project and description of site |
| The campuses to be constructed are located in João Pessoa (state of Paraiba), Fortaleza (state of Ceara), Caruaru (state of Pernambuco), Maceió (state of Alagoas), plus two campuses and a library in Recife (state of Pernambuco). The campuse are located in urban renters in location easily accessible by public transport. |
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| Anticipated development impact of the project |
The project will have a significant development impact by increasing access to and efficiency in post-secondary education in Brazilian North East. Specifically, the project will:
Increase access to post-secondary education to lower income students;
Promote improvement of educational standards in a fragmented sector;
Attract private investors to the still underinvested Brazilian education sector. |
| IFC's expected development contribution |
Provide funding in a recovering market where long-term financing remains scarce;
Support the enhancement of the Company’s education services through sharing industry contacts and best practices developed in IFC’s recent experiences in the higher education sector in Brazil;
Provide a strong signal to the market in terms of the attractiveness of the post-secondary education market in the Northeast. |
| 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 that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria as is described in the following sections.
Key environmental and social issues identified during the appraisal include the following:
Environmental and social management capacity
Compliance with local permits and licenses, including construction and operation permits
Energy, water and natural resources conservation
Life and Fire Safety
Protection of community health through provision of potable water, sanitation, and adequate building infrastructure for the operations
Labor and working conditions including occupational health and safety
Land acquisition for expansion activities
Protection of cultural heritage
The project will comply with local and IFC’s environmental and social requirements upon implementation of the specific agreed measures. The information about how these potential impacts will be addressed by Mauricio de Nassau is summarized in the Environmental and Social Action Plan (ESAP). |
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| For inquiries about the project, contact: |
| Nazareno Habib Ouvidor Bichara E-mail: habib.bichara@sereducacional.com Phone: + 55 (81): 3413-4605 Rua Fernando Lopes, 778 - Graças - Recife - PE - Brasil CEP: 52.011-220 |
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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 |
| Rua Fernando Lopes, 778 - Graças - Recife - PE - Brasil CEP: 52.011-220 |
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