Caixa Geral de Depósitos sells Brazil unit to MD Capital for €69.7 million

Portugal's state‑owned bank Caixa Geral de Depósitos (CGD) announced the sale of 100% of its Brazilian subsidiary, Banco Caixa Geral – Brasil (BCG‑Brasil), to MD Capital Ltda. for a total price of 409 million reais, roughly €69.78 million. The transaction, subject to customary adjustments between the reference date and closing, is expected to generate an accounting loss of €11 million but will increase CGD’s CET1 capital ratio by about 29 basis points.

The divestment fulfills a 2017 European requirement for CGD to reduce its overseas holdings and follows a government‑driven relaunch of the process. Completion is planned for 2027, pending regulatory approvals in Brazil. MD Capital, founded by former Bradesco executives, intends to rename the bank Sophos Bank under its new management. CGD President Paulo Macedo described the sale as a positive step for the group’s capital structure.