Banco Cooperativo Sicredi, a Brazil-based financial cooperative owned by its 6.5 million members, recently agreed to borrow EUR 200 million (USD 214 million) from the EU’s European Investment Bank (EIB). Sicredi plans to use the capital to equip houses and small and medium-sized enterprises (SMEs), including those in rural areas, with solar power systems.
César Bochi, CEO of Sicredi, commented, “We have recently signed several agreements to raise funds abroad in order to promote investments in projects that help reduce climate impacts while generating financial savings for our members… We hope this will be the first of many joint actions in support of the environmental, social and governance agenda.”
Founded in 1995, Sicredi aims to “contribute to improving the quality of life of members and society.” The organization offers loans, payment cards and checking accounts as well as foreign exchange, investment and insurance services. The coop has 40,000 employees operating 2,500 branches. As of April 2023, it reported BRL 286 billion (USD 58 billion) in assets, BRL 198 billion (USD 41 billion) in deposits and BRL 181 billion (USD 37 billion) in outstanding loans.
Established in 1958, EIB provides technical assistance, loans and financial guarantees in sectors such as SME finance and climate mitigation and adaptation. The institution agreed to EUR 72 billion (USD 77 billion) in new financing during 2022.
By Renata Samadova, Research Associate
Sources and Additional Resources
EIB press release
https://www.eib.org/en/press/all/2023-215-brazil-eib-grants-eur200-million-to-sicredi-for-smes-and-households-solar-energy-investments
Sicredi homepage
https://www.sicredi.com.br
EIB homepage
https://www.eib.org
Previous MicroCapital article on EIB
https://www.microcapital.org/microcapital-brief-welight-madagascar-raises-20m-from-edfi-electrifi-eib-triodos-for-off-grid-solar-development/
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