IIC renews its financial support for Paraguay’s farming sector
Washington, D.C. - On October 5, 2010, the Inter-American Investment Corporation (IIC) approved a loan to Agrofértil, S.A., consisting of tranche I of up to US$2.3 million and tranche II of up to US$2.7 million. This is the IIC’s third operation with the company.
With this third loan to Agrofértil the IIC seeks to improve the company’s financial profile considering the company’s need to expand its regional input distribution and grain storage networks. In view of the expected increase in agricultural production nationwide, the operation also seeks to partially finance Agrofértil’s working capital requirements to increase the financing it makes available to agricultural SMEs.
The IIC’s previous operations with Agrofértil helped the company improve its corporate governance considerably, bring in international external auditors, enhance its accounting management and information technology standards, and strengthen its physical infrastructure and security systems by adopting better practices.
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 Paraguay’s economy, but also helping a company with a good track record further improve its efficiency and productivity. A significant portion of the loan will indirectly make it possible for small and medium-size farmers to finance their harvests adequately and at lower costs, which is important because in Paraguay, as in most Latin American countries, medium- and long-term financing for the agricultural sector is scarce."
About Agrofértil, S.A.
Agrofértil has more than 16 years of experience in the sector; it sells agricultural inputs, stores and markets grains (soy, corn, wheat, sunflower, and others), and provides agricultural services to growers. The company also grows grain on land operated by Grupo Agrofértil companies, and it has ties to one of Paraguay’s largest manufacturers of agrochemicals. For more information on Agrofértil, please visit www.agrofertil.com.py.
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 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 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