Washington D.C., June 13, 2002—
The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, has structured a US$60 million Pre-Export Finance Seasonal facility for Argentina’s largest exporter of oilseeds and its byproducts, Aceitera General Deheza (AGD).
The facility marks IFC’s first investment in Argentina since the onset of the country’s economic crisis and strengthens AGD’s capacity to meet its soybeans purchase program during the peak months of the current harvest.
The facility was co-arranged with Vereins Und Westbank A.G. and Rabobank International and consists of a loan for IFC’s own account of $30 million, and a syndicated loan of $30 million. The Pre-Export facility will be of a short-term nature, secured by AGD’s export contacts, and renewed annually for a period of three years.
“As a result of the economic crisis, companies have experienced difficulties in accessing much needed working capital and trade lines. This operation fits IFC’s current strategy in Argentina to support existing clients in export oriented industries with secured trade finance facilities,” said Jean-Paul Pinard, Director of IFC’s Agribusiness Department.
Jean-Paul Pinard also pointed out that: “This well-timed transaction will also provide relief to close to 8,000 Argentinean farmers that constitute AGD’s network of oilseeds suppliers. It will also signal to other potential lenders that despite current macroeconomic conditions, there is room for well structured trade finance operations.”
“AGD is very pleased to be part of IFC’s first trade finance facility of this kind in Argentina,” said Miguel Acevedo, AGD’s Chief Financial Officer. Mr. Acevedo added: “We have been operating in the competitive environment of commodities for more than 50 years and IFC’s assistance is the acknowledgment of our commercial and financial accomplishments, proof of which has been the timely payment of all our duties during the current crisis. We look forward to continuing our business expansion as a local company with the same business drive and ethics obtained after so many years of productive effort in Argentina.”
As of December 2001, IFC’s loan portfolio was the largest in Latin America, with $960 million for its own account, and $150 million in equity.
IFC’s mission (www.ifc.org) 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, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.
