Washington D.C., April 17, 2003—
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has structured a $60 million three year Pre-Export Finance Program Facility for one of Argentina's leading exporters of oilseed by products, Vicentin S.A.I.C.
IFC’s financing for Vicentin will help the company meet its soybeans and sunflower seed purchase program during the peak months of this season’s harvest. This is the third Pre-Export Finance Program Facility structured by IFC for its existing clients in the oilseed crushing sector in Argentina since the onset of the country's economic crisis. A few months after the start of the crisis, IFC structured a similar facility for Aceitera General Deheza (AGD), Argentina’s largest exporter of oilseeds, and, in parallel with the facility for Vicentin, another facility was structured for Molinos, another local agribusiness exporter.
The facility, co-arranged with Vereins Und Westbank A.G., consists of an A loan for IFC’s own account of USD30 million, and a syndicated B loan of USD30 million evenly participated in by Rabobank International and Vereins Und Westbank A. G. Vereins Und Westbank A.G. will also serve as the facility’s Administrative Agent. The Pre-Export facility will be secured by Vicentin's long-term export contracts to OECD countries, 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 transaction also signals to other potential lenders that despite current macroeconomic conditions, there is room for well structured trade finance operations. The presence of two leading international banks in the transaction proves this point."
Bernard Pasquier, IFC’s Latin America Director also said: “This operation shows IFC’s continued commitment to assist its clients in difficult situations”.
"The financial assistance received from the International Finance Corporation, Vereins Und Westbank A.G. and Rabobank International is doubly important, given the difficult situation that the country is currently experiencing”, said Vicentin’s Financial Director Roberto Gazze. "On one hand, this assistance constitutes an important recognition of a family business that has spanned 4 generations, and that has stood out by meeting its financial obligations in even the most difficult of times. On the other hand, the assistance is an affirmation of the company’s leading position in one of the most competitive sectors of the national economy."
“Through this facility Vereins Und Westbank A.G. continues to provide credit assistance in its field of expertise, commodity trade finance, to the Argentine exporting sector and to its longstanding credit customers that have proven themselves capable to cope with difficult and changing environments” said Vereins-und Westbank representative in Argentina Norman Bruce Coates.
Vicentin is one of the largest buyers from Argentina agricultural sector, especially of oilseeds and raw cotton. Vicentin’s activities have therefore, a wide impact on Argentina’s agricultural sector and a large number of farmers across the country.
IFC's mission (
www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty a
nd improve 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. Since its founding in 1956, IFC has 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, with an additional $6.5 billion held for participants in loan syndications.
