CGD Brazil divestment to MD Capital

Portugal’s state‑owned bank Caixa Geral de Depósitos (CGD) announced the sale of its Brazilian subsidiary, Banco Caixa Geral – Brasil, to MD Capital Ltda. for 409 million reais (about €69.8 million). The deal, subject to customary adjustments and regulatory approval in Brazil, is expected to generate an accounting loss of €11 million but will raise CGD’s CET1 capital ratio by roughly 29 basis points. MD Capital plans to rename the bank Sophos Bank after the transaction closes, which is slated for 2027.

The Portuguese government subsequently approved the sale, confirming the buyer and the transaction value of roughly 250 million reais (about $40 million). MD Capital was chosen from a shortlist that also included Nubank, the Russian group Sputnik and Garantia Capital; Nubank withdrew after acquiring Banco Porto Real to secure a banking licence. This marks the third attempt by Portugal to divest CGD’s Brazil unit as part of a broader strategy to sell overseas assets and improve the country’s fiscal position, with public debt near 90 % of GDP. CGD Brazil holds about 1.9 billion reais in assets and a credit portfolio of 825 million reais, serving companies involved in Iberian‑Brazilian trade.