IIC Supports Argentina’s Agricultural Sector with US$5 Million Loan
Loan to Entre Ríos Crushing S.A. to strengthen soybean production chain in Entre Ríos Province
Washington, D.C., September 25, 2013 — The Inter-American Investment Corporation (IIC) has approved a loan of up to US$5 million for the Argentine company Entre Ríos Crushing S.A. (ERCSA). In response to growing international demand for its products, ERCSA will use the loan proceeds for the purchase of raw materials to step up its production of soybean oil and meal—including meal it uses in its balanced animal feeds.
In this sector, ERCSA is a small-scale company. The financial support from the IIC will enable it to bolster its working capital and boost its annual production of soybeans and soybean derivatives—from 204,000 tons to 260,000 tons. The loan will also benefit the chain of small and medium-sized (SME) growers in Entre Ríos Province that supply soybeans to ERCSA.
“Thanks to this long-term financing we can now make modest investments in our logistical and production processes, boosting efficiency to meet our goal of specializing in different balanced animal feeds,” explained Martín Echeguía, the chairman of ERCSA’s board. “During 2013, our products have found new markets in North Africa, Oceania, and Southeast Asia, reaching small producers in the poultry, pork, and dairy farming industries. We believe that ongoing access to these markets is key to making our company sustainable and will produce a multiplier effect in logistics and agriculture/livestock activities, and services in general in Entre Ríos Province.”
“The IIC’s direct support to small-scale industrial companies like ERCSA has a significant impact in terms of creating opportunities for growth and employment in the province’s chain of production. With this long-term loan, ERCSA will boost its competitiveness and efficiency in a sustainable manner,” noted Santiago Cat, IIC senior investment officer in charge of the operation.
Established in 2008, ERCSA is an Argentine company that crushes soybeans to produce balanced animal feeds and other soy oil and meal derivatives. ERCSA’s plant is located in the Gualeguaychú industrial park, in Entre Ríos Province. Because the company exports most of its production, it generates foreign exchange for the country.
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. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Santiago Cat
Telephone: +598 (2) 915-3696 in Montevideo, Uruguay