IIC renews its financial support for Argentina’s Profertil S.A.

07/05/2011

Washington, D.C. - On July 6, 2011, the Inter-American Investment Corporation (IIC) approved a loan of up to US$70 million—comprising an A loan of up to US$8 million and a B loan of up to US$62 million—to Profertil S.A. in Argentina. This is the IIC’s second operation with Profertil.

The loan will finance an industrial plant, storage silos, and a jetty on the Paraná River, in the municipality of Puerto General San Martín, Santa Fe Province. The IIC will syndicate part of the loan to attract other banks to provide Profertil with financing on the same terms.

"The investment will be used to build a jetty to unload solid fertilizers in bulk. The jetty will be designed to moor vessels from 4,000 tons to 47,000 tons of deadweight. Its storage capacity will be 200,000 tons. Estimated annual turnover will be 650,000 tons, the equivalent of receiving 35 vessels and dispatching 22,000 trucks. The investment will create 300 jobs during the construction phase and 30 direct jobs and 250 indirect jobs once the port begins operations," said Roberto Mario Blumensohn, Profertil’s Finance Manager.

According to Hernando Lesme, IIC Investment Officer in charge of the operation, "With this operation the IIC is not only supporting a key sector in Argentina’s economy, but also helping Profertil improve the efficiency of its logistics in terms of storage, distribution, and transportation to the main agricultural production areas in the country, thereby enabling the company to maintain its good competitive position and large market share."

About Profertil S.A.

Profertil is an Argentinian fertilizer manufacturer; its main product is granular urea for improving agricultural yields. Profertil has a production capacity of 1.1 million tons of granular urea per year. It is the only company producing this type of fertilizer in Argentina and much of the region. Profertil sells almost all of its production in the local market and also exports to other countries in the region and beyond. For more information on Profertil, please visit www.profertil.com.ar

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing 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 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Contact: Hernando Lesme (in Paraguay)

Telephone: + (595 21) 616-2321

Email: hernandol@iadb.org