The FINANCIAL — IFC, a member of the World Bank Group, will provide a $135 million financing package for agribusiness company Vicentin to support its working capital needs for exports of oilseed, oil and sub products.
For more than 20 years, IFC has been a strategic partner of Vicentin by providing financing, mobilizing resources and sharing global sector knowledge. Vicentin is a leading player in Argentina’s agribusiness sector and one of the country’s largest oilseed crushers, contributing with approximately 14% of the country’s soybean crushing capacity. The company is also a significant employer in Argentina and an important contributor to rural economies through linkages with local farmers and intermediaries, who provide oilseeds to the company, according to IFC.
The financing package consists of $25 million for IFC’s own account and $110 million raised by IFC from commercial banks, financial institutions and funds including: Natixis, Rabobank, Banco Itau BBA, FMO, ABN Amro, Credit Agricole, Cordiant Emerging Loan Fund, as well as Federated Project and Trade Finance Core Fund. Natixis and Rabobank acted as joint lead arrangers with IFC for the syndication. IFC’s loans consist of two tranches of up to 3 and 5 years, a relatively long loan maturity in Argentina.
“IFC financing will improve Vicentin’s debt profile, reduce exposure to swings in financial markets, and allow the company to continue growing in a sustainable way. We are delighted to partner once again with IFC,” said Vicentin Vice-President, Alberto Macua.
“Argentina is a key participant in the global agribusiness supply chain and one of the largest and most competitive suppliers of soybean oil and meal, which are affordable sources of fats and protein on a global scale”, said Salem Rohana, IFC Manager for Argentina, Chile, Paraguay and Uruguay. “This financing comes at a key moment for Argentina’s social and economic growth, and demonstrates IFC’s long-term commitment to its clients in the private sector,” he noted.
IFC’s agribusiness strategy focuses on strengthening food security and rural incomes by improving productivity in agriculture, promoting inclusive growth, and helping companies adopt good environmental and social practices. In 2014, IFC’s global investment in the agricultural sector supported more than 3.4 million farmers worldwide. IFC agribusiness global investments in fiscal year 2015 were $3.2 billion.