IIC Continues Supporting Agricultural Sector in Argentina
Washington, D.C., July 7, 2015 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$40 million—comprising an A loan of up to US$6 million and a B loan of up to US$34 million—to Argentinian fertilizer producer Profertil S.A. to improve the company’s debt profile and provide working capital.
The IIC will syndicate part of the loan to attract other banks to provide Profertil with financing on the same terms.
“With this loan, the IIC supports the growth of a company in a high-value sector connected to the agricultural market, enabling it to maintain its good market position,” said Santiago Cat, the IIC senior investment officer in charge of the operation. “The operation will also enable other financial institutions to participate on the same terms as far as tenor, rate, and security conditions.”
This is the IIC’s third operation with Profertil. Previous operations supported an expansion project that involved the construction of storage silos and a wharf on the Paraná River, in Santa Fé province. The operations also provided financing for investment in capital goods and refinancing for short-term liabilities.
Profertil is an Argentinian company that produces fertilizers; its main product is granulated urea for improving agricultural yields. Profertil has a production capacity of 1.3 million tons of granulated urea per year. It is the only company producing this type of fertilizer in Argentina and much of the region. Profertil markets almost all of its production locally, but it also exports to other countries in the region and beyond.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with technical assistance, advisory services, and knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Santiago Cat
Telephone: +598-2-915-4330 in Montevideo, Uruguay