Nicholson y Cano in Argentina and Vouga Abogados in Paraguay advised on the transaction
IFC, a member of the World Bank Group, granted a US$10 million loan to Agrofértil, a leading agribusiness company in Paraguay. This investment will help the agribusiness sector, which is critical to the country’s growth, face the economic impacts of the COVID-19 pandemic.
Agricultural commodities, such as soybean and beef, account for 70 percent of Paraguay’s total exports. About 40 per cent of Paraguay’s population live in rural areas and depend on agriculture for their livelihoods.
The loan to Agrofértil has been granted as part of IFC’s global response to combat the economic impacts of the COVID-19 pandemic. IFC has implemented a US$8 billion package of fast-track financing to its clients to help sustain economies, support businesses and protect jobs all over the world.
Agrofértil is Paraguay’s leading crop input distributor and it supports the pre-harvesting financing needs of its network of farmers. It provides agrochemicals, seeds, fertilizers, technical support, and other inputs to client producers, as well as commercialization of their grains.
Supporting small farmers by providing capital lines to agribusiness input distributors – part of IFC’s strategy in Paraguay – is more important than ever in light of the COVID-19 pandemic, which has affected financing for the agricultural sector.
Through this loan, IFC will be injecting liquidity to support Agrofértil finance the pre-harvest capital needs of thousands of small agricultural producers and contributing to ensure continuity of operations across Paraguay’s agribusiness value chain. This will help provide resiliency to a sector that is a pillar of the country’s economy and key to its long-term growth prospects. In addition, this investment is climate-friendly, meaning that Agrofértil’s business model provides high quality inputs and agronomic support to farmers on how to use the inputs, and helps improve crop yields and reduce waste and losses.
In Argentina Nicholson y Cano advised International Finance Corporation with a team including Mariano A. Fabrizio (Picture) and Gonzalo Rivas Orozco.
Vouga Abogados advised IFC in Paraguay.
Law Firms: Nicholson & Cano Abogados;
Clients: International Finance Corporation;