CAF, JICA and Sicredi join forces to support women and rural producers

Sicredi, a financial cooperative with more than 8 million members and a presence in all Brazilian states and the Federal District, Brazil, obtained a syndicated loan for US$ 297 million from CAF and JICA - Japan International Cooperation Agency. This loan was the first of its kind made by CAF to a cooperative financial institution, as well as the first collaboration between CAF and JICA, thus strengthening relations between Latin America and Asia.

The proceeds of CAF's A/B Social Loan, in which CAF acted as Mandated Lead Arranger while BNP Paribas and SMBC acted as Social Loan Coordinators, will be used to finance micro, small and medium-sized enterprises (MSMEs) led by women. The funds will also be used in municipalities with a Human Development Index (HDI) below the national average and to finance rural producers. Sicredi currently has more than 700,000 farmer members, almost 90% of whom are involved in family farming.

This is the largest international financial facility carried out by Sicredi, as well as the largest in terms of institutional partners. BNP Paribas and SMBC contributed significantly with their experience and expertise in ESG issues for the certification of most of the transaction as a Social Loan. The CAF loan is aligned with the Sicredi Sustainability Framework and is labeled as a Social Loan in accordance with the principles published by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndication and Trading Association.

The facility is part of CAF's new private sector strategy, which seeks to enrich the diversity and value of its financial offering by facilitating the mobilization of third-party resources for its clients throughout the region. CAF President, Sergio Diaz-Granados, notes: "In December 2023, CAF presented this financial facility to its Board of Directors. The total amount mobilized from public and private entities amounted to USD 247 million, achieving a mobilization rate of almost five times CAF's own commitment. This successful financial facility is an example of how development banks can mobilize resources and direct them to social issues. The facility reinforces CAF's commitment to become the green and blue bank, contributing to sustainable and inclusive growth in Latin America and the Caribbean."

"We are very proud to inaugurate our partnership with CAF and continue cooperating with JICA. These alliances allow us to continue promoting women entrepreneurs, as well as benefiting municipalities with a below-average Human Development Index and small rural producers. Increasingly, we are accessing international resources to advance the ESG agenda in Brazil, thus contributing to sustainable development," says Alexandre Barbosa, Sicredi's executive director of Sustainability, Administration and Finance.