Seven Latin American countries will receive support from IDB Invest and LAAD to strengthen agriculture
IDB Invest, the private sector institution of the IDB Group, signed a $45 million A-loan with the Latin American Agribusiness Development Corporation (LAAD), a financial intermediary that finances small and medium-sized agribusiness projects in Latin America and the Caribbean. The IDB Invest loan, which expands LAAD's funding sources and has a tenor of up to seven years, will go to seven countries in the region: Peru, Chile, Colombia, Costa Rica, Guatemala, the Dominican Republic and Nicaragua.
The operation allows IDB Invest to positively impact a large number of micro, small and medium enterprises (MSMEs), given LAAD's knowledge of the agribusiness sector in the region. The financing allows LAAD to expand its loan portfolio in the medium and long term. The objective for LAAD is to continue financing projects that, with a focus on sustainability, involve all stages of production, storage, technology and commercialization.
The majority of LAAD's loans are aimed at developing permanent crops, agricultural machinery and equipment for associated agricultural infrastructure. The IDB Invest operation also incorporates an evaluation and improvement of LAAD's environmental and social management system. In addition, access to credit from these agricultural companies allows regional developments such as the increase of food production in a sustainable manner, the creation of employment in rural areas and the growth and diversification of export earnings.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.6 billion under management and 330 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
Latin American Agribusiness Development Corporation (LAAD) is a private investment and development company. LAAD finances and develops private agribusiness projects in Latin America and the Caribbean involving all phases of production, processing, storage, services, technology and marketing in the fields of agriculture, livestock, forestry and fishing.