Washington, D.C., July 10, 2009–IFC,
a member of the World Bank Group, has provided a $10 million working capital
facility to Frontera Agropecuaria del Paraguay (S.A.) to support farming
operations in Paraguay.
IFC’s financing will help bring farm land into sustainable production
and create opportunities for rural development. Agriculture plays an important
role in Paraguayan economy, with more than 42 percent of the population
living in rural areas and dependent on agriculture for livelihood. It
represents about 25 percent of the GDP, 30 percent of employment, and almost
all registered exports.
Frontera Agropecuaria del Paraguay is a member of Desarrollo Agricola del
Paraguay Group, the DAP Group, which is an industrial-scale agricultural
farming company producing soybeans, corn, and sunflowers in Paraguay.
“IFC’s support will allow the company to finance its working capital
needs properly and enhance its competitiveness,” said DAP President Pascual
Rubiani. He said the IFC investment will help develop agricultural farming
“based on a triple bottom-line model--social inclusion, environmental
care, and sustainable economic results.”
Oscar Chemerinski, Director of IFC’s Global Agribusiness Department, said,
“IFC financing will play an important countercyclical role during the
current financial crisis. IFC will be providing financing to Paraguay’s
agriculture farming sector to support local players like the DAP Group
that adopts sustainable farming practices. The investment is expected to
contribute to rural economic development and increase food supply.”
IFC’s strategy in Paraguay is focused on supporting access to finance
for micro, small, and medium enterprises, promoting global trade, and providing
advisory services to improve the investment climate. Key sectors
include infrastructure, particularly in the areas of transport, electricity,
agribusiness development, and financial markets.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About the DAP Group
DAP is a business group with significant Paraguayan and international investments.
It is setting a new management benchmark for agribusiness in Paraguay by
introducing the triple-bottom-line model – economic, social, and environmental
– and works in partnership with the civil society and rural neighboring