The International Finance Corporation, a member of the World Bank Group, is to fund Brazilian agribusiness to the value of $125 million. The funds will be available in the form of a $100 million loan and guarantees valued at $25 million. Eligible agribusinesses can access this finance through Banco BBM SA, one of Brazil’s medium-sized banks. The tranche is IFC’s latest effort to improve access to finance for mid-sized agribusinesses in Brazil.
IFC’s $100 million loan comprises a 5-year $50 million loan, a 3-year $25 million syndicated loan, and a 5-year $25 million loan through the IFC Managed Co-Lending Portfolio Program. IFC have appointed debt partners Banco Bradesco Europa SA and Israel Discount Bank of New York as syndicated lenders.
Banco BBM is providing the $25 million of guarantees in partnership with the IFC’s Global Trade Finance Program.
The IFC has stepped up its commitment to agribusiness financing in recent years. Earlier this year, German Vegarra, head of African agribusiness for the IFC, pledged to invest in the regions agribusiness sector to the value of $2 billion by 2018.