Operating in the lumbering business since its foundation in 1918, the Iochpe Group intensified its diversification in the 1960s, moving into the financial sector with the acquisition of bank charters from the recently created Central Bank.
Through one of its financial companies, Iochpe S.A. – Credit, Financing and Investments, in Rio Grande do Sul, Iochpe enabled the first major investments under the Federal Government’s FINAME industrialization incentive scheme, created in December 1964 to fund the purchase of machinery and equipment.
Iochpe S.A. – Credit, Financing and Investments provided a great deal of funding for the capital and durable consumer goods sectors, which helped underwrite its home state’s industrial vocation. During the so-called “Brazilian economic miracle”, the annual growth rate in Rio Grande do Sul frequently outstripped that of the rest of the nation.
Iochpe S.A. – Credit, Financing and Investments enjoyed such popularity that it was even able to run prime-time ads on southern radio stations. Below is the transcript of one such spot broadcast on Guaíba Radio in Porto Alegre on June 10, 1969:
“Find out more about FINAME at Iochpe, which has the cheapest loans going. Iochpe finances the acquisition of industrial equipment. Come check out Iochpe S.A. – Credit, Financing and Investments’ financing schemes.”