The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB), has approved a $40 million loan to Argentinian fertiliser producer Profertil to support the business’ debt profile and provide working capital.
The loan comprises an A loan of up to $6 million and a B loan of up to $34 million, according to a press release. IIC said it will syndicate part of the loan to attract other banks to provide Profertil with financing on the same terms.
Profertil is an Argentinian company that produces fertilisers. It is the only producer of granulated urea in Argentina and much of the region, according to its website, and it markets most of its production locally.
“With this loan, the IIC supports the growth of a company in a high-value sector connected to the agricultural market, enabling it to maintain its good market position,” Santiago Cat, the IIC senior investment officer in charge of the operation, said in a statement.
“The operation will also enable other financial institutions to participate on the same terms as far as tenor, rate, and security conditions.”
This is IIC’s third co-operation with Profertil. IIC issued a $10 million loan to Profertil in November 2009 and an $8 million loan in July 2011, both of which supported an expansion project that involved the construction of storage silos and a wharf on the Paraná River. The operations also provided financing for investment in capital goods and refinancing for short-term liabilities, IIC said in a statement.
IIC issued a $6 million loan to International Greenhouse Produce (IGP) in late June and since its inception in 1984 the multi-lateral financial institution has approved $5.63 billion for more than 920 loans. An additional $3.7 billion has been mobilised through co-financing and syndication agreements.