# CGD Brazil divestment to MD Capital > Live situation record from CLSTR: https://clstr.news/situations/cgd-brazil-divestment-to-md-capital > Updated: 2026-08-02T21:00:47.000Z. Sources: 10. Developments: 2. 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. ## Timeline ### 2026-08-02: Portugal approves sale of CGD Brazil to MD Capital Portugal approved the sale of CGD's Brazilian unit to MD Capital for about 250 million reais, a move aimed at reducing Portugal's high public debt. 8 sources. https://clstr.news/cluster/portugal-approves-sale-of-cgd-brazil-to-md-capital ### 2026-07-31: Caixa Geral de Depósitos sells Brazil unit to MD Capital for €69.7 million CGD is selling its Brazil bank to MD Capital for about €69.7 million, taking an €11 million loss but boosting its CET1 ratio, with the deal slated to close by 2027 pending approvals. 4 sources. https://clstr.news/cluster/caixa-geral-de-depsitos-sells-brazil-unit-to-md-capital-for-697-million --- Cite as: CGD Brazil divestment to MD Capital. CLSTR, https://clstr.news/situations/cgd-brazil-divestment-to-md-capital