IDB Invest announced a loan to Bancop for up to $20 million to finance small and medium producers in the agricultural and livestock sectors of Paraguay. This will help contribute to food security in the country and the region. The financial package includes $15 million financed by IDB Invest and approximately $5 million mobilized from institutional investors.

The project seeks to strengthen support for Bancop to expand access to financing for small and medium-sized agribusiness producers in Paraguay to promote food production. The project is expected to contribute significantly to food security in the country.

The agricultural sector in Paraguay is essential to the local economy, specialized in the production and export of soybeans, beef and byproducts. Overall, the industry comprises one fifth of the GDP, with agriculture, meat, livestock, beverages and oils ranking the highest. Agricultural activity represented 11.3% of GDP in 2022.

In Paraguay more than 35% of the population lives and produces in rural areas. In these areas, production chains for exports and the family farming model coexist. In addition to producing for self-consumption, family farms supply the local markets. Paraguay is the largest exporter of organic sugar in the world, 8th in beef exports, 4th in soybean exports and 10th in wheat. Cooperatives in Bancop’s supply chain produce 90% of Paraguay's milk, 32% of wheat, 23% of meat and 13% of soybeans.

In recent years, climate change and global inflation have increased the risk of food insecurity in the region. Those most affected are small and medium farmers who face liquidity constraints, as well as vulnerable populations.

IDB Invest also provided advisory services focused on climate action to strengthen alignment with the Paris Agreement and establish a sustainable strategy. Bancop will receive support to incorporate a system to identify and manage climate risks in loan portfolios of agricultural chains.

The project with Bancop is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10) and Partnership for the Goals (SDG 17).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, 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 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.

About Bancop

Bancop is the only bank owned by the main production cooperatives in Paraguay. The bank began operating in July 2012, and now has ten and six service channels, which include its headquarters in Asunción, twelve branches, two Customer Service Centers (CAC) and a Non-Banking Correspondent (CNB), all strategically located in the most productive areas of the country. Bancop is committed to offering high-quality, innovative and competitive products and services to its clients. Its mission is to support the sustainable development of Paraguay by providing financial services to different economic sectors.