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IFC Supports BAF Latam Trade Finance Fund with $70 million to Expand Access to Finance to Agribusiness in Brazil, Argentina, Paraguay and Uruguay


Contact:
Adriana Gomez, IFC
Tel: 202-458 5204
E-mail: agomez@ifc.org

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 Southern Cone.

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.

About IFC

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.

About BAF

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.  

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