Banco Sofisa, a bank committed to SMEs and women’s entrepreneurship in Brazil

Banco Sofisa is a medium-sized Brazilian commercial bank. This private family-owned bank is specialized in loans to small and medium-sized enterprises (SMEs). Its total assets stood at USD 1.6bn as at 31 December 2020, including a USD 1bn loan portfolio mainly focused on SMEs. 

It is one of the leading digital banks in Brazil and remains a pioneer in its online investment services accessible to individuals. In 2021, the bank had about 15 branches in 9 states, over a thousand SME clients and some 400 employees.

Banco Sofisa is a partner which PROPARCO is already familiar with, having allocated senior financing to it in 2009.

The project involves the syndication, led by IDB, of a credit line of up to USD 200m (Proparco’s participation stands at USD 30m) to Banco Sofisa for the development of its SME portfolio, as well as a USD 20,000 technical assistance facility.

At least 30% of the credit line is dedicated to financing women’s entrepreneurship based on the 2X Challenge criteria, with an objective of reaching 50% at the end of the operation. This financing follows on from Proparco’s previous operations to support SME financing in Brazil. SMEs play a major role in economic growth and social inclusion in the country: they account for 62% of total employment and 50% of national added value. 

Proparco’s technical assistance project, in partnership with IDB and FinDev Canada, aims to strengthen the inclusive nature and positive impact of Banco Sofisa in Brazil, both internally with the implementation of more equal practices, particularly on gender issues, and externally by helping to define a strategy tailored to the segment of SMEs owned and/or managed by women.

The project allocated to Sofisa should provide 300 SMEs with access to bank financing and the credit line provided by PROPARCO access for 50 SMEs. Through its credit line dedicated to financing companies managed or owned by women eligible for the 2X Challenge, the project will support the growth of about 15 SMEs whose capital is mainly owned by women and/or which are mainly run by women. The project will also create and/or maintain 1,250 jobs, primarily in the SMEs that have obtained financing.

The technical assistance facility aims to facilitate access to financing for SMEs owned and/or managed by women (implementation of a strategy, adaptation of the services on offer and capacity building) and increase the portfolio of women-owned SMEs (more equal HR policy). The project should also contribute to promoting professional equality in the bank.

This project will contribute to the achievement of three of the United Nations Sustainable Development Goals (SDGs): “Decent work and economic growth” (SDG 8), “Industry, innovation and infrastructure” (SDG 9) and "Partnerships for the goals” (SDG 17).