IIC Approves Loan That Will Benefit Paraguay’S Agricultural Sector
The IIC’s second operation with Agrofértil will help further economic integration between Agrofértil and its suppliers
Washington, D.C. – On October 22, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$2 million to Agrofértil, S.A. Agrofértil imports and sells agricultural inputs on the Paraguayan market. It also purchases and exports grain and provides technical assistance to growers. In addition, Agrofértil grows grain on land operated by Grupo Agrofértil companies, and it has ties to one of Paraguay’s largest manufacturers of crop protectants.
The loan proceeds will be used to finance part of the company’s working capital requirements. Nearly 100% of Agrofértil’s agricultural input sales are financed until harvest time. The IIC loan will enable Agrofértil to make more financing available to growers on terms that meet their needs. The growers will thus be able to expand their planted area, invest in better fertilizers for their crops, and improve their yield and profits.
The loan is particularly important for Agrofértil because financing on appropriate terms for businesses to meet operating funding requirements is scarce in Paraguay, especially for the agricultural sector.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Hernando Lesme (in Paraguay)
Telephone: + (595 21) 616-2321