A groundbreaking loan from Banco Cooperativo Sicredi backed by the Latin American and Caribbean Development Bank (CAF) and the Japan International Cooperation Agency (JICA) has won the 'Impact initiative of the year: Latin America and Caribbean' category.

The $297 million loan, which represented CAF's first to a Brazilian cooperative lender and its first collaboration with JICA, represents Sicredi's largest international fundraising. The loan is part of CAF's new private sector strategy, aiming to enhance the diversity and value of financial offerings and facilitate the allocation of third-party resources to clients throughout the region. It was participated in by four other international entities also: BNP Paribas, Banco Finantia, Eco.business Fund and Sumitomo Banking Corporation (SMBC).

The loan will be allocated to finance micro-, small- and medium-sized enterprises led by women and for credit in municipalities with a Human Development Index score below the national average. In addition, part of the amount raise will be used to finance rural producers.

Sicredi said BNP Paribas and SMBC made a significant contribution with their ESG expertise to certifying the majority of the transaction as a social loan. In addition, loan is aligned with Sicredi's Sustainable Finance Framework and is labelled as a social loan in accordance with the social lending principles published by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndication and Trading Association.

"We are delighted to receive this award, which acknowledges our commitment to driving socially responsible initiatives that foster positive change in communities. To advance this agenda, we have increasingly pursued international partnerships, aiming to strengthen these efforts nationwide and contribute to local sustainable development," said Alexandre Barbosa, executive director of sustainability, administration and finance at Sicredi.