Buenos Aires, December 5, 2018—IFC,
a member of the World Bank Group, IDB Invest, a member of the Inter-American
Development Bank Group, and Rabobank arranged a $100 million financing
package for San Miguel, the largest citrus exporter in the Southern Hemisphere.
The financing will complement the capital structure of San Miguel, whose
export-earning business is a large employer of direct and indirect labor
in each community where it operates. In the Argentine province of Tucumán,
it employs more than 4,500 people each season.
The package consists of $27.5 million from each IFC and IDB Invest, and
$45 million from Rabobank. IFC and IDB Invest will also advise San Miguel
on good environmental practices in key areas, such as the treatment of
“We welcome IFC, IDB Invest and Rabobank as partners in our endeavor to
strengthen our position as a multinational Argentine company as we expand
to new markets and implement our sustainable agribusiness model,” said
Romain Corneille, CEO of San Miguel.
The up to 9-year financing package offers a longer-term tenor than currently
available on the market. Long-term financing is essential for the citrus
industry, as it takes at least five years for a citrus tree to bear export-quality
fruit. The financing will contribute to San Miguel’s $132.5 million investment
plan to grow its sustainable, customer-oriented business model, as a world
leader in citrus production and in the processing of value-added citrus
products. It will help San Miguel expand its operations in Argentina, Uruguay,
Peru and South Africa on its different products—lemon, orange, mandarin,
table grape and avocado.
“We are proud to continue our work with San Miguel to expand its operations.
The company is an example of how Argentine businesses can successfully
compete in the world and create jobs where they are most needed,” said
David Tinel, IFC Regional Manager for the Southern Cone. “IFC is committed
to support sustainable agribusinesses in Argentina and Uruguay, and strengthen
their export sectors to contribute to the growth and resiliency of these
“The financing offered by IDB Invest to San Miguel intends to support
one of the most important fruit exporters of Latin America and the Caribbean,
thus enhancing the export capabilities from three destinations such as
Argentina, Uruguay and Peru while generating employment in rural areas
through operations implemented in a sustainable manner," said Aitor
Ezcurra, Corporates Division Chief of IDB Invest.
“Rabobank has provided continued support to agribusiness companies in
Argentina for 25 years, and continues to strengthen its commitment to the
country, the sector and its clients with transactions like this $100 million
medium-term financing for San Miguel,” said Rafael Bonasso, Representative
of Rabobank. “We look forward to continuing to provide support to our
clients in the coming years,” noted Rafael.
Citrus fruits are among the most popular fruits in the world. In
the last five years, the global demand for lemon oil and juice has been
growing at more than three percent annually. Tucuman’s lemon industry
employs 40,000 workers and produces 1.3 million tons of lemons per year.
The industry exports lemons and related products to Europe, the US, Canada,
Russia, Hong Kong, and the Middle East.
On August 2017, San Miguel incorporated grape and avocado for the first
time, through the purchase of Agricola Hoja Redonda SA, a Peruvian mandarin,
table grape and avocado’s company with a capacity to produce 28,000 tons
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org
About San Miguel
San Miguel is the leading company in the Southern Hemisphere in the production
and distribution of fresh citrus and processed foods. With nearly 10,000
hectares in Argentina, Uruguay, South Africa and Peru, it supplies more
than 260 customers in 80 countries. With the focus on its customers, San
Miguel is constantly expanding its offer. Thus, he has recently added avocado
and table grapes to his portfolio of fresh fruits, while working on the
development of new products. San Miguel seeks to add value at each stage
of the production process, with Sustainability as a priority and at the
center of its business model. For more information, visit www.sanmiguelglobal.com
Established in the Netherlands, Rabobank is a leading global bank with
over 1,000 offices in more than 40 countries, and almost 50,000 employees
worldwide. Rabobank operates on the basis of cooperative principles with
strong agriculture roots, thus boasting a track record of over a century
in financing agribusiness through long-term relationships. Rabobank is
committed to making a substantial contribution to welfare and prosperity
in the Netherlands and to feeding the world sustainably, aiming to being
the leading bank in the field of food and agri worldwide through its unique
Banking for Food vision. Rabobank has been active in Argentina since
1993 as a Representative Office, and over the years, has built strong relationships
across the industry, and a portfolio of over $1.5 billion dollars.
About IDB Invest
Invest, the private sector institution
of the Inter-American Development Bank (IDB) Group, is a multilateral development
bank committed to supporting Latin America and the Caribbean businesses.
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 $11.2 billion under management and 330 clients
in 23 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.