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Asunción, Paraguay, February 24, 2015
—IFC, a member of the World Bank Group, will provide up to $30 million to Sudameris Bank S.A.E.C.A. to expand access to finance for Paraguayan farmers, small and medium enterprises, and exporters in the agribusiness sector. Agribusiness is a key driver of economic growth and job creation in Paraguay. It accounts for 25 percent of the country’s GDP and 60 percent of its exports.
IFC’s financing consists of a short-term loan for up to six months, which can be renewed five times for up to three years. It is part of the Global Warehouse Finance Program (GWFP), which provides banks with liquidity to finance its clients using warehouse receipts as collateral. Through the program, farmers can access working capital while at the same time optimizing the timing of the sale of their products to enhance their profits.
“IFC’s financing will help Sudameris Bank support the agribusiness sector, which is essential to Paraguay’s economic growth and job creation,” said Gustavo Cartes, Vice President and CEO of Sudameris. “This is our third transaction with IFC. We are pleased to continue this strategic partnership with IFC while helping to strengthen our position in the country’s financial sector.”
Sudameris Bank became an IFC client in 2010 when it joined IFC’s Global Trade Finance Program with a $ 15 million trade line, which has since been increased to $25 million. In June 2011, IFC committed an $18 million credit line for Sudameris Bank, its first GWFP funded investment ever.
“Through this transaction IFC confirms its long-term partnership with Sudameris Bank, as it expands its efforts to support agribusiness in Paraguay,” said Salem Rohana, IFC Country Manager for Paraguay, Argentina, Chile, and Uruguay. “This new operation shows IFC’s commitment to working 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.
About IFC
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 about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
About Sudameris Bank S.A.E.C.A.
Sudameris Bank has been owned by Abbeyfield Group since 2004, when Abbeyfield acquired a 78 percent stake and in 2008 acquired the remaining stake to own 98 percent. The bank offers a full range of banking services to large corporations, small and medium enterprises, and retail customers through its 20 branches, 3 customer service centers, and 80 ATMs across Paraguay. Its products include Current and Savings accounts (DDAs), Time Deposits, Commercial Loans, Mortgages, Trade Finance, Foreign Exchange (spot and forwards), Warrants, and Insurance Products through an in-house insurance broker. For more information, visit
www.sudameris.com.py
or
www.abbeyfieldgroup.com
.
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:
www.ifc.org/trade
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