Washington, D.C., June 1, 2010—IFC,
a member of the World Bank Group, is providing a $15 million working capital
facility to help Agrotec S.A. support the pre-harvest financing needs of
Paraguay’s farmers and strengthen the country’s agricultural sector,
a pillar of the economy.
Agrotec, one of Paraguay’s leading
agronomy service companies and a member of the Agrihold Group, provides
seeds, fertilizers, technical support, and other inputs to more than 700
client farmers, as well as commercialization of their grains. IFC’s
financing will help Agrotec increase farmers’ access to finance, contribute
to rural economic development, and strengthen Paraguay’s agricultural
Nearly half of Paraguay’s population
lives in the countryside and depends on agriculture for their livelihoods.
Agriculture also represents about 25 percent of the country’s gross
domestic product, 30 percent of employment and a significant portion of
the country’s exports.
“IFC’s financing will strengthen Agrotec’s
working capital and help increase investment in technology development
for seeds and other products,” said Tulio Nevez Zanchet, Agrotec’s president.
“In addition, it will provide more access to finance and technology
for farmers in Paraguay. Zanchet also noted that IFC’s support
comes as agribusiness is recovering, after 2009 when agribusiness conditions
were affected adversely by the global financial crisis.
Oscar Chemerinski, IFC Director for
Global Agribusiness, said, “IFC is partnering with Agrotec to have a systemic
impact on the Paraguayan economy by increasing access to working capital
financing for farmers in frontier regions. The investment will promote
the sustainable growth of a company with broad and deep links to the rural
Alpax Inc was the exclusive advisor
to Grupo Agrihold in the structuring and execution of this transaction.
IFC’s strategy in Paraguay is to engage
with the private sector in transport, financial services, and agribusiness.
Furthermore, IFC supports access to finance for small and medium enterprises,
helps improve the investment climate, and reduces barriers to doing business.
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 capital for private enterprise,
and providing advisory and risk mitigation services to businesses and governments.
Our new investments totaled $14.5 billion in fiscal 2009, helping channel
capital into developing countries during the financial crisis. For more
information, visit www.ifc.org.
Agrotec offers a one-stop shop to more
than 700 client farmers, providing seeds, fertilizers, agrochemicals, technical
support, storage and logistic services, pre-harvest financing, and commercialization
of clients’ grains. The company’s strategy is to develop strong relationships
with farmers, providing integral agronomic services from sowing, planning,
and advice by providing seeds, nutrition integration, and crop protection.
Agrotec operates seven regional distribution centers including its headquarters
in Ciudad del Este. For more information, visit www.agrotec.com.py.