CAF approves A/B loan for Banco Sicredi

The Board of Directors of CAF, the development bank of Latin America and the Caribbean, approved a US$250 million loan to Banco Cooperativo Sicredi. The operation is CAF's first A/B operation for a Brazilian commercial bank.

The proceeds of the operation will be used preferentially to finance urban and rural MSMEs in municipalities with an HDI below the national average and to finance operations with a gender focus, thus promoting business development, equality, and financial inclusion. CAF, as leader of the operation, will provide US$50 million, complemented by up to US$200 million from other international financial institutions under the A/B modality. This operation is part of the strategy to support the country's strategic sectors that enable the generation of employment and improvements in the quality of life of the population.

"The approved operation reflects the principles that guide CAF's actions in Latin America and the Caribbean, to support inclusive, long-term growth with a focus on energy transition and climate issues. In the case of Sicredi, working with a cooperative bank further enhances our approach and we are confident that the institution will impact the lives of many Brazilian entrepreneurs with these resources," said Sergio Diaz-Granados, CAF's executive president.

Sicredi currently groups 105 Brazilian cooperatives with 7 million members, 2.5 thousand points of service and 40,000 employees.