Washington D.C., June 13, 2002—The International
Finance Corporation (IFC), the private sector development arm of the World
Bank Group, has structured a US$60 million Pre-Export Finance Seasonal
facility for Argentina’s largest exporter of oilseeds and its byproducts,
Aceitera General Deheza (AGD).
The facility marks IFC’s first investment in Argentina since the onset
of the country’s economic crisis and strengthens AGD’s capacity to meet
its soybeans purchase program during the peak months of the current harvest.
The facility was co-arranged with Vereins Und Westbank A.G. and Rabobank
International and consists of a loan for IFC’s own account of $30 million,
and a syndicated loan of $30 million. The Pre-Export facility will
be of a short-term nature, secured by AGD’s export contacts, and renewed
annually for a period of three years.
“As a result of the economic crisis, companies have experienced difficulties
in accessing much needed working capital and trade lines. This operation
fits IFC’s current strategy in Argentina to support existing clients
in export oriented industries with secured trade finance facilities,”
said Jean-Paul Pinard, Director of IFC’s Agribusiness Department.
Jean-Paul Pinard also pointed out that: “This well-timed transaction will
also provide relief to close to 8,000 Argentinean farmers that constitute
AGD’s network of oilseeds suppliers. It will also signal to other
potential lenders that despite current macroeconomic conditions, there
is room for well structured trade finance operations.”
“AGD is very pleased to be part of IFC’s first trade finance facility
of this kind in Argentina,” said Miguel Acevedo, AGD’s Chief Financial
Officer. Mr. Acevedo added: “We have been operating in the competitive
environment of commodities for more than 50 years and IFC’s assistance
is the acknowledgment of our commercial and financial accomplishments,
proof of which has been the timely payment of all our duties during the
current crisis. We look forward to continuing our business expansion
as a local company with the same business drive and ethics obtained after
so many years of productive effort in Argentina.”
As of December 2001, IFC’s loan portfolio was the largest in Latin America,
with $960 million for its own account, and $150 million in equity.
IFC’s mission (www.ifc.org) is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people’s
lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, and provides
technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $31 billion of
its own funds and arranged $20 billion in syndications for 2,636 companies
in 140 developing countries. IFC’s committed portfolio at the end
of FY01 was $14.3 billion.