Banco Cooperativo Sicredi supports small rural farmers in Brazil with IIC financing
The Inter-American Investment Corporation (IIC), acting on behalf of the Inter-American Development Bank (IDB) Group,has joined efforts with Banco Cooperativo Sicredi S.A to provide rural credit for Brazilian smallholder farmers and finance their low carbon agriculture practices.
Through an A Loan of the equivalent in Brazilian Reais of US$50 million, the IIC will support an institution strategically committed to financial inclusion in rural areas, increasing food security and benefiting the environment by promoting the use of low carbon technologies.
Banco Cooperativo Sicredi is part of the Sicredi System that serves about three million members in Brazil through a network of nearly 100 cooperatives. The bank acts as an intermediary between financial markets, third party financial institutions and the cooperatives it finances.
This is the first ever IDB Group variable rate loan in Brazilian reais. The longer tenor of 4 years provided by the IIC is usually not available in the local commercial market and will be passed on to the cooperatives and ultimately on to the rural small farmers beneficiaries.
Additionally, the IDB Group will offer the client the option of participating in a technical cooperation to train its staff in low carbon agriculture practices and to incentive small rural farmers to adopt climate friendly technologies through a results-based financing mechanism.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of US$7 billion under management and 330 clients in 20 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
[Source: Inter-American Development Bank-Media relations]
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