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Asunción, Paraguay, April 30, 2014
—IFC, a member of the World Bank Group, will provide $30 million to Banco Regional S.A.E.C.A. in Paraguay to expand access to finance for local farmers, small and medium enterprises (SMEs), and exporters in the agribusiness sector. Agribusiness is a key driver of economic growth and job creation in Paraguay. It accounts for 20 percent of the country’s GDP and employs a third of its workforce, with about 900,000 jobs.
IFC’s financing consists of a short-term loan for up to 12 months, which can be renewed twice for up to three years. Banco Regional was established in 1991 by a group of Paraguayan entrepreneurs to address credit constraints for the agribusiness and manufacturing sectors. Today it provides more loans to agribusiness than any other bank in Paraguay and has a 53 percent direct exposure to the sector.
“We are excited to expand our strategic partnership with IFC,” said Raúl Vera Bogado, President of Banco Regional. “In addition to financing, IFC brings global and technical experience that will strengthen our leading position in Paraguay’s financial system, in particular in the agribusiness sector.”
IFC is providing financing to Banco Regional as part of the Global Warehouse Finance Program, which supports lending to the agriculture sector against warehouse receipts or similar collateral schemes to increase working capital. This provides farmers with liquidity and allows them to maximize the profit of their sales.
This is IFC’s fourth transaction with Banco Regional. It became an IFC client in June 2008 when it joined IFC’s Global Trade Finance Program with a $5 million trade line, which has since been increased to $20 million. In March 2011, IFC committed a $30 million credit line for SMEs. More recently, in July 2012, IFC committed a five year loan for $15 million disbursed in Guaranies under a Master Swap Agreement agreed with the Central Bank of Paraguay.
“We are pleased to continue supporting Banco Regional, as it expands its efforts to support agribusiness producers and exporters in Paraguay,” said Salem Rohana, IFC’s Country Manager for Paraguay, Argentina, Chile, and Uruguay. “This new operation shows IFC’s commitment to work with key players in Paraguay that contribute to the country’s social and economic development”.
IFC’s strategy in Paraguay promotes business expansion into other emerging markets, supports micro, small, and medium enterprises, fosters global trade, and protects natural resources through environmentally sustainable business practices. For more information about IFC in Latin America and the Caribbean, visit
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
About Banco Regional S.A.E.C.A.
Banco Regional is headquartered in Encarnación, and has a national presence through 39 branches across Paraguay. Banco Regional is consolidating its role as a universal bank with a significant presence in both the retail and SME sectors. The Bank is currently owned by Rabo Financial Institutions Development B.V. ("Rabobank"), which holds and interest of 40% in the Bank's capital and local individual shareholders, who collectively own the remaining 60%. For more information, visit
About IFC’s Global Warehouse Finance Program
IFC started the Global Warehouse Finance Program in 2010 to increase working capital financing to farmers, traders, and exporters in emerging markets by leveraging their own production. The program supports the agriculture sector by providing banks with liquidity or risk coverage backed by warehouse receipts or other inventory financing initiatives, which are used to provide financing in the form of short-term loans to producers and traders ahead of export. To date, IFC has financed more than $4.6 billion commodity finance transactions in more than 20 countries. The program is expected to reach up to 241,000 farmers across emerging markets in all regions and contribute to food availability for 15 million people by 2016. For More information, visit:
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