IDB Invest has signed two loans totaling $85 million with Cresol, Brazil’s third-largest credit cooperative, to expand credit for low-income individuals and micro, small, and medium-sized enterprises (MSMEs). A $25 million loan will go to the cooperative Central Sicoper, and $60 million to the cooperative Central Baser. These funds will help expand Cresol’s credit portfolios, fostering inclusive economic growth in Brazil.

The $25 million loan to Central Sicoper includes $10 million from IDB Invest, $10 million by the German development finance institution, DEG, and $5 million from the Canadian Net Zero and Climate Resilience Accelerator, facilitated through IDB Invest’s blended finance product. Similarly, the $60 million loan to Central Baser comprises $25 million from IDB Invest; $25 million from DEG, making its first transaction since joining the Amazonia Finance Network (AFN); and an additional $10 million from the Canadian Net Zero and Climate Resilience Accelerator.

The loans will expand Cresol’s credit offerings for low-income individuals and MSMEs, with a strong focus on advancing sustainable agriculture. The Central Baser loan is specifically aimed at stimulating economic growth in the Amazon region. Through these investments, Cresol will increase credit access while advancing green finance and sustainability. The blended finance structure includes performance-based incentives to help Cresol grow its low-carbon agriculture portfolio, support women-led MSMEs, and adopt leading climate risk disclosure practices. 

Brazil’s banking sector—the largest in Latin America—has seen significant growth in lending to MSMEs, with credit increasing nearly 11% annually between 2019 and 2023. Yet, this growth is primarily concentrated among medium-sized businesses, leaving micro and small enterprises, which make up nearly 99% of Brazilian businesses, with limited access to affordable credit. As a result, many smaller businesses are forced to depend on credit cards to finance operations, restricting their ability to reinvest profits and hampering their growth potential.

The financing is pivotal in promoting inclusive economic growth, climate resilience, and sustainable development in Brazil, with a special emphasis on the Amazon region.

IDB Invest will provide Cresol with advisory services to advance its sustainable finance strategy, including refining its taxonomy for sustainable agriculture and low-carbon technologies, conducting market benchmarking, strengthening governance, and identifying key performance indicators (KPIs) for climate, green, and sustainable projects.

Cresol will also enhance its climate risk management system, add climate-focused modules to its entrepreneurship program, and offer new training workshops for staff and leadership. To secure concessional terms under the blended finance loan, Cresol will prioritize its green agenda. Additionally, the transaction includes an Environmental and Social Action Plan to improve its Environmental and Social Management System by integrating IFC Performance Standards and other improvements.

This project will contribute to several United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Promote Sustainable Agriculture (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), Climate Action (SDG 13), and Partnerships for the Goals (SDG 17).

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website idbinvest.org.

About Cresol 

Cresol, founded in 1995 in Paraná, Brazil, is a leading system of financial cooperatives with over 900,000 members across 19 states in Brazil. Focused on providing financial solutions through strong relationships, Cresol promotes the development of its members, their businesses, and communities. Beyond financial services, it is committed to non-financial services such as financial education, offering programs to a variety of audiences. Agriculture and SME are some of the main target groups, which reflects in Cresol’s credit portfolio, and it strives to be more than just a financial institution, serving as a model for cooperative development and committed with a positive social and environmental impact in everything it does.

About DEG

For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 10.3 billion we’re one of the largest private-sector development financiers. As an impact and climate investor we accompany companies that are addressing transformation and aiming to seize their opportunities. Our customers not only receive financing and advisory solutions tailored to their needs: they can build on our market knowledge, our impact and climate expertise and our international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs. Learn more: www.deginvest.de

About Canadian Net Zero and Climate Resilience Accelerator 

The Canadian Net Zero and Climate Resilience Accelerator, is a fund administered by the Inter-American Development Bank. The purpose of the Canadian Net Zero and Climate Resilience Accelerator is to drive climate resilience and reduce greenhouse gas emissions in Latin America and the Caribbean through new technologies, innovative business models and nature-based solutions, while promoting gender equality, diversity and inclusion.