Washington, D.C./Basel, Switzerland,
April 8th, 2016—IFC, a member of the World Bank Group, provided $70
million to BAF Latam Trade Finance Fund to expand funding for processors
that buy agricultural commodities from farmers, as well as companies that
supply farmers with crop inputs in Latin America. The Fund’s operations
are mainly focused on Brazil, Argentina, Paraguay and Uruguay and it has
been expanding in Chile, Ecuador and Peru as well.
The Fund is managed by BAF Capital A.G. (BAF),
an investment management company registered in Switzerland with subsidiaries
in Brazil, Argentina and Uruguay. It specializes in providing finance to
the processors and buyers of agricultural commodities in South America’s
As farmers often have limited access to finance,
suppliers of farming inputs like fertilizers and processing companies such
as wheat millers and dairy cooperatives often need to assist farmers. By
lending to these suppliers and buyers, the Fund is extending the financing
that enables companies and farmers to maintain production into the food
and agricultural commodity supply chain, despite a challenging regional
macroeconomic environment and fluctuating commodity prices.
“We welcome IFC’s partnership with BAF
Latam Trade Finance Fund to expand needed funding for a vibrant agribusiness
sector in Latin America. We appreciate IFC’s lasting commitment to emerging
markets and its capacity to tailor financial solutions that address our
specific business needs, “said Jorge Fravega, CEO of BAF Capital A.G.
“Supporting the agribusiness supply chain
in the Southern Cone and Brazil will contribute to economic and social
growth in these countries”, said Alzbeta Klein, IFC Global Industry Director,
Agribusiness, Manufacturing & Services Investments. “This financing
confirms IFC’s commitment to supporting private sector players who contribute
to a dynamic supply chain in the agribusiness sector.”
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 2015, 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.
For more information about IFC in Latin America
and the Caribbean, visit www.ifc.org/lac.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
BAF Capital A.G. and its affiliates (BAF)
is a fund manager that specializes in lending to processors and other companies
who buy agricultural commodities from farmers as well as to companies that
supply farmers with crop inputs. BAF’s experienced Management Team has
a background of more than 30 years advising regional companies and institutional
investors. BAF has a loan portfolio of about US$800 million in the largest
fund it manages, BAF Latam Trade Finance Fund. In addition to its advisory
activities, BAF manages not only the BAF Latam Trade Finance Fund but also
the recently launched BAF Latam Credit Fund with $25 million under management,
as of February 29, 2016. For more information, visit www.bafcapital.net
About BAF Latam Trade Finance Fund
The fund was launched in March 2008, providing
working capital solutions to companies in the agricultural supply chain
in Latin America. Developing this source of financing for the agribusiness
sector is especially important as the sector’s financing needs cannot
be consistently met by banks especially as they aim to meet more stringent
capital requirements and consolidation continues.