Link to IFC's 2002 Annual Report
http://www.ifc.org/ar2002/
Washington, DC, October 29, 2002
—The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, provided a US$30 million loan for Amaggi Exportaçao e Importaçao Limitada, a soybean merchandiser, crusher and exporter in Brazil. The IFC loan will help Amaggi finance its growing permanent working capital needs which consist of advances to farmers and inventories of soybeans and their by-products.
As part of their operations, Amaggi and its major sponsor, Grupo André Maggi Participaçoes Limitada, are providing an integrated package of financing and marketing services to local farmers. The IFC investment will support more than 900 farmers who currently benefit from the company’s advances in a cost-effective approach. The soybean sector is one of the most important agribusiness contributors to Brazil’s economy, accounting for close to 10 per cent of the country’s total exports.
“IFC’s financing will contribute to the critical role played by Amaggi in the oilseed sector in Brazil”, said Jean-Paul Pinard, IFC’s Director of the Agribusiness Department. Mr. Pinard further added that the value of the financing will be seen mostly in the rural credit extended by the company to soybean farmers.
Bernard Pasquier, IFC’s Director of the Latin America and Caribbean Department also noted: “IFC’s long-term financing to Amaggi will provide the company with a more stable source of financing to continue its operations, at a time when access to long-term credit is more restricted. IFC’s support to Amaggi and to other private sector companies in Brazil shows the corporation’s ability to respond rapidly to the acute shortages of such financing under shifting economic conditions.”
While Amaggi’s existing working capital lines are short-term in nature, they serve well the seasonal business cycle of the company said Pedro Jacyr Bongiolo, the company’s Executive Vice-President. Mr. Bongiolo added that as Amaggi is expanding, IFC’s long-term funding will enable the company to increase the level of permanent portion of working capital. The possibility of getting such long-term financing will alleviate Amaggi from the burden of continuously renewing lines of credits to finance its permanent current assets, Mr. Bongiolo noted.
IFC’s mission (IFC) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through the close of the last fiscal year on June 30, 2002, IFC committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was $15.1 billion for our own account and $6.5 billion held for participants in loan syndications.
