BRAZIL: IFC promotes access to higher education

The International Finance Corporation, a member of the World Bank Group, is promoting access to higher education in Brazil with a 50 million reais (US$27 million) grant to Anhanguera Educacional Participações, the country's leading private post-secondary institution.

As well, Proparco, a subsidiary of Agence Française de Développement, will provide EUR8 million (US$11.2 million)while DEG, a member of KfW Bankrengruppe, will provide EUR15 million. The funds will help finance Anhanguera's investment plan for 2010.

Professor Antonio Carbonari, Anhanguera's President and founder, said, "This financing will enable us to respond to the growing demand for education services by leveraging our business model and expanding our network of colleges and learning centres."

Anhanguera enrolled more than 250,000 students last year. Its business model for third-level education focuses on low and middle-income working adults who may not have access to public universities. On average, its graduates almost tripled their income after completing their studies. The model offers high-quality standards and affordable prices to the students.

Guy Ellena, IFC Director for Health and Education, said, "Anhanguera illustrates in very human terms the development impact that IFC is trying to achieve by reaching low and middle-income students and offering them opportunities to improve their professional and technical education in order to get better jobs."

Andrew Gunther, IFC Country Manager for Brazil, added, "Anhanguera is a very good example of a financially sustainable private sector project that has a strong social impact. IFC is proud to continue supporting Anhanguera's innovative approach and commitment to education in Brazil."

IFC's relationship with Anhanguera dates back to 2006, with a $12 million loan to the company through Fundo de Educacão para o Brasil. In March 2007, Anhanguera became Latin America's first private education company to list its shares through an initial public offering. Last year, it was the recipient of IFC's Client Leadership Award in the real sector category.

Along with IBRD, the IFC is seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries - including by making loans to help meet educational demands.