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

Sicredi, a cooperative financial institution with over 8 million members and presence in all Brazilian states, and the DC area, obtained a $297 million loan from CAF and JICA - Japan International Cooperation Agency. This loan marks the first of its kind executed by CAF for a Brazilian cooperative financial institution and the first partnership between CAF and JICA, thus expanding connections between the LAC region and Asia.

The proceeds from CAF’s Social A/B Loan, in which the institution acted as Mandated Lead Arranger, and BNP Paribas and SMBC acted as Joint Social Loan Coordinators, will be allocated to the financing of micro, small, and medium-sized enterprises (MSMEs) led by women. Additionally, funds will be used for credits in municipalities with a Human Development Index (HDI) below the national average. Finally, part of the proceeds will be allocated to fund rural producers. Currently, Sicredi has more than 700,000 member farmers, nearly 90% of whom are involved in family farming.

This is the largest international financial arrangement ever executed by Sicredi, as well as the most extensive collaboration in number of institutional partners. BNP Paribas and SMBC have materially contributed with their ESG expertise to the Social Loan labelling of the largest segment of the transaction. CAF’s Social A/B Loan is aligned with Sicredi's Sustainability Framework and is labeled as a Social Loan under the social loan principles published by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndication and Trading Association.

This transaction is part of CAF’s new private sector strategy, which aims to enhance the diversity and value of its financial offerings, and to mobilize third-party resources for its clients throughout the region, in this respect, CAF’s CEO, Sergio Díaz-Granados, highlights: “In December 2023, CAF presented this facility to its Board of Directors. The total loan facility mobilized funds from public and private entities totaling USD 247 MM, reaching a mobilization ratio of almost 5 times CAF’s own commitment. This successful facility is an example of how MDBs can mobilize resources and direct them towards social issues. It reinforces CAF’s commitment to become the green and blue bank and to contribute to the sustainable and inclusive growth of the region”.

"We are very proud to launch our partnership with CAF and continue our cooperation with JICA. These partnerships allow us to continue our work promoting women entrepreneurs, as well as benefit cities in which the Human Development Index is below average and small rural producers.  We have increasingly accessed international resources to promote the ESG agenda in Brazil, also collaborating with sustainable development." commented Alexandre Barbosa, Sicredi's Executive Director of Sustainability, Administration, and Finance.