Washington D.C., July 18, 2005
—
The International Finance Corporation, the private sector arm of the World Bank Group, will provide $85 million to Vicentin, one of Argentina’s leading agro-exporters. This loan will support the company’s expansion and modernization plans and will finance permanent working capital.
IFC’s eight-year long-term financing consists of a $35 million loan and a $50 million syndicated loan to be completed later this year.
Atul Mehta, IFC’s Director for Latin America, said, “IFC is pleased to continue supporting Argentina’s successful export-oriented companies, which have played an important role in the recovery of the country’s economy.” He added, “This operation shows IFC’s commitment to Argentina’s companies as well as our timely response to changes in the business environment and in companies’ needs.”
Jean-Paul Pinard, IFC’s Director for Agribusiness, noted, “IFC supported the Argentine oilseed sector during the economic crisis by providing much-needed trade financing. Today we are taking the lead in providing companies in this sector with access to long-term credit.”
Herman Vicentin, President of Vicentin, said, “IFC has been a long-term partner to Vicentin, with support at various stages of our company’s growth. This financing will help consolidate our leading position in one of the most competitive sectors of the country’s economy. ”
Vicentin is one of the largest family-owned oilseed crushers in Argentina, accounting for more than 10 percent of the country’s capacity for processing of oilseeds. The company currently operates three crushing plants in the province of Santa Fe, at and near the port of San Lorenzo. Vicentin’s operations also include cotton ginning and spinning, and meat processing.
Previous IFC’s financings to Vicentin took place in 1996 and 2002, the latter consisting of a three-year trade finance facility.
Since the start of the financial crisis in Argentina, IFC has played an essential role in supporting its clients in the private sector. IFC remained engaged in Argentina throughout the crisis, having committed over $358.5 million for its own account since June 2002. The Corporation also syndicated $160 million under its B-loan program over the same period.
The mission of IFC (
www.ifc.org)
is to promote sustainable private sector investment in the developing countries and to help for the reduction of poverty and improvement of people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
