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Washington, D.C., November 18, 2010
—IFC, a member of the World Bank Group, is providing a $15 million long-term loan to Uruguay’s Nuevo Banco Comercial S.A. to increase access to finance for farmers and small and midsize firms in the agribusiness industry, where Uruguay has a strong competitive advantage.
Agribusiness is one of the main drivers of the Uruguayan economy, accounting for approximately 20 percent of the country’s gross domestic product and 60 percent of its total exports. The sector also accounts for approximately 15 percent of national employment, including the related transport and commerce services.
IFC’s five-year loan will allow Nuevo Banco Comercial to increase its operations in rural areas and provide its agribusiness clients with longer term loans, which are currently scarce in the local market. Furthermore, the loan will enable farmers and other entrepreneurs to undertake capital investments at longer tenors, while supporting the competitiveness of the agribusiness sector, strengthening its supply chain, and expanding opportunities for rural communities.
“We are pleased to consolidate our strategic relationship with IFC,” said Alejandro Conforte, Head of International and Financial Institutions of Nuevo Banco Comercial. “This transaction will enable us to continue contributing to the sustainable development of small and medium-sized agribusiness enterprises. It confirms our commitment to this key sector of the Uruguayan economy and our determination to promote credit growth in Uruguay.”
James Scriven, IFC Director for Global Financial Markets, said: “This long-term credit facility shows IFC's commitment to key financial players in Uruguay that reach farmers and small and medium enterprises in rural areas. Given its strong nationwide presence and distribution network, Nuevo Banco Comercial plays an important role in the sustainable growth of agribusiness in the country.”
IFC’s strategy in Uruguay promotes business expansion into other emerging markets, supports micro, small, and medium enterprises (MSMEs), fosters global trade, and protects natural resources through environmentally sustainable business practices. For more information about IFC in Latin America and the Caribbean, visit:
www.ifc.org/lac
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About Nuevo Banco Comercial S.A.
Nuevo Banco Comercial, Uruguay’s third largest bank in terms of loans, is headquartered in Montevideo, and has a national presence through 49 branches across Uruguay. Nuevo Banco Comercial has a strong focus on small and midsize companies, which it serves through a diverse array of products. The bank is controlled by a consortium of investors led by Advent International, an international private equity fund with 14 offices and nine affiliates in 25 countries. For more information, visit
www.nbc.com.uy/
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