The loan aims to expand access to credit for small and medium businesses
Brasília, November 10, 2022: The U.S. International Development Finance Corporation (DFC) and Banco Sofisa announced a disbursement of a $45 million, 5-year loan program for small and medium-sized enterprises (SMEs). The operation will have the partnership and institutional support of the U.S. Agency for International Development (USAID) in Brazil. BH26, a boutique investment firm, was the exclusive financial advisor for the transaction.
Banco Sofisa will prioritize loans to SMEs operating in the Amazon with at least 30% of the loan proceeds to be allocated in the region. “DFC’s $45 million loan to Banco Sofisa will expand access to capital for small and medium businesses across Brazil with a focus on those operating in the Legal Amazon,” said James Polan, DFC’s Vice President of the Office of Development Credit. “Promoting financial inclusion for underbanked communities will boost economic growth and development in Brazil.”
João Ceneviva, Treasure of Sofisa said: “we are honored to be part of this project in partnership with DFC and USAID/Brazil to foster new business for small and medium companies located in the Brazilian Amazon and support the growth of such an important region.”
“This transaction supports USAID/Brazil’s development objectives and is intended to address the constrained access to capital SMEs face which is most pronounced in Brazil’s northern regions where there is the lowest financial inclusion rates and lowest number of banking service points in the country. SMEs are important drivers of a diversified economy, necessary for sustainable economic development in the Amazon region”, said Ted Gehr, Director USAID/Brazil.
Promoting sustainable development and the conservation of the Amazon’s biodiversity is critical to tackle deforestation and climate change. DFC, Banco Sofisa and USAID/Brazil are committed to strengthening this path and addressing the economic growth challenges in the region. The partnership will provide local entrepreneurs access to credit to build a new economic development paradigm that fosters maintenance of standing forests and biodiversity resources.
The announcement was made during an event for investors at Banco Sofisa headquarters in São Paulo. The ceremony was also attended by Sao Paulo’s U.S. Consul General, David Hodge.
To download the official photos of the event, access: https://www.flickr.com/photos/embaixadaeua-brasil/albums/72177720303565915