MICROCAPITAL BRIEF: IFC Syndicates $135m Loan to Agribusiness Company Vicentin of Argentina

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced that it will syndicate a loan of USD 135 million to Vicentin, an Argentinian agribusiness company, to support its export business.The loan will be disbursed in two tranches with maturities of up to 3 and 5 years, respectively. Of the total amount, USD 25 million is being supplied directly by IFC, while the remaining USD 110 million has been raised by IFC from commercial banks, financial institutions, and funds, including the France-based Credit Agricole, Dutch development bank Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), French corporate and investment bank Natixis, among others.

Vicentin’s primary products include cereals and oilseeds, biodiesel, and agrochemicals. Financial information for Vicentin is unavailable. As of June 2015, IFC has 184 member countries that drive its policies and approve disbursements. As of the same time, IFC reported total assets of USD 87.5 billion, net annual income of USD 445 million and return on assets of 0.5 percent.

By Charlotte Newman, Research Associate

About the International Finance Corporation (IFC): The International Finance Corporation (IFC), a US-based member of the World Bank Group, offers loans, equity investments, technical assistance, and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of June 2015, IFC has 184 member countries that drive its policies and approve disbursements. Also, As of June 2015, IFC reported total assets of USD 87.5 billion, net annual income of USD 445 million and return on assets of 0.5 percent.

About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO): Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. As of June 2014, FMO reported total assets of EUR 6.4 billion (USD 7.8 billion).

Sources and Additional Resources:

IFC Press Release: IFC Provides $135 Million to Vicentin in Argentina, Supporting the Country’s Agribusiness Sector

MicroCapital Universe Profile: International Finance Corporation

MicroCapital Universe Profile: FMO

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