The International Finance Corporation and Netherlands-based Rabobank have arranged a $410 million financing package that will enable Argentine soy exporter Renova to expand its Timbues plant, located in the province of Santa Fe.
The financing will enable Renova, which operates an integrated soybean crushing facility and one of the country’s largest ports in Timbues, to boost crushing capacity by 50 percent and double the port’s loading capacity by building a new grain port, the IFC said in a statement. Renova’s current processing capacity stands at 20,000 tons per day.
IFC and Rabobank each contributed $75 million while the remaining $260 million came from the following development finance institutions and commercial lenders: the Inter-American Investment Corporation (a member of the Inter-American Development Bank), FMO, ING, Santander, Natixis, ICBC, ABN and Itau. IFC and IIC acted as lenders of record.
According to the statement, the investment will benefit 8,500 farmers and help create 300 new permanent jobs.
“This investment is part of IFC’s commitment to support a vibrant agribusiness sector in Argentina which is a key contributor to economic and social growth,” said David Tinel, IFC manager for Argentina, Chile, Paraguay and Uruguay. “It will also enhance port infrastructure, an essential driver to improve logistics and competitiveness in the oilseeds and grains supply chain in Argentina,” he added.
The country is one of the largest exporters of soybean oil and meal, representing approximately 45 percent of global trade.
Established in 2007 as a joint venture between agroindustrial companies Vicentin and Oleaginosa Moreno Hermanos, part of Glencore’s agricultural group, Renova also operates a biodiesel producing facility in San Lorenzo, Santa Fe.
“IFC and Rabobank’s engagement has been key to mobilize additional funding from other development and commercial banks, at longer terms from what it […] is currently available in the country,” Renova’s president Sergio Gancberg said.
According to the statement, IFC has been supporting Argentina’s grains and oilseeds sector over the past 25 years with investments that exceed $1 billion. Rabobank has also been supporting Argentina’s agricultural sector over that same length of time with a portfolio of more than $1.3 billion.