The FINANCIAL -- IFC, a member of the World Bank Group, will provide an $80 million financing package to support the expansion of Molino Cañuelas SACIFIA, one of Argentina’s leading foods and agribusiness companies. The financing will help Molino Cañuelas fund its working capital needs and purchase machinery for new value-added product lines at its production plants in Cañuelas and Carlos Spegazzini on the outskirts of Buenos Aires.
The food and agribusiness sectors are some of the most dynamic and competitive markets of the Argentine economy. They contribute with more than half of the country’s total exports and 20 percent of its direct employment. Molino Cañuelas produces different types of flours and premixes, edible oils, cookies, biscuits, pastas and frozen foods, among other products. The financing package consists of $30 million for IFC’s own account and $50 million raised by IFC from Rabobank, a financial institution based in the Netherlands, according to IFC.
“Molino Cañuelas is embarking on an important new chapter in our long history; we are excited to count on IFC’s support while we diversify our products for local and export markets”, said Aldo Navilli, President of Molino Cañuelas, who also adds that “This event will have a positive impact not only for our company and its employees, but the farmers and distributors in our supply chain.”
“With this financing, Molino Cañuelas becomes a strategic partner for IFC in our goal to support key players in Argentina that contribute to economic growth and social development”, said Liz Bronder, IFC’s Director for Latin America and the Caribbean.
In the past twelve months, IFC has committed over $1.2 billion in sustainable private sector projects in Argentina, becoming the largest international source of financing to the country’s private sector during this period. IFC finances projects in critical sectors such as agribusiness, manufacturing, finance and energy, for spurring economic growth, innovation and job creation in the country. IFC expects to invest an additional $1 billion in private sector projects by the end of 2016, as market conditions continue to improve and investors’ interest grow.