IDB Invest, a member of the Inter-American Development Bank (IDB) Group, and IFC, a member of the World Bank Group, signed a $100 million loan with the Uruguayan company Cooperativa Nacional de Productores de Leche (Conaprole). The operation supports the production and export of nutritional products, and it reinforces the growth and competitiveness of the dairy industry in the international market.

The investment will help increase the processing and drying capacity of powdered milk, widely used for infant feeding, by 1.9 million liters per day. The increase will allow Conaprole to expand its production, innovate products, increase exports and generate growth in the dairy value chain, benefiting more than 1,900 producers with whom it works. The financing also includes the construction of a more efficient boiler system for the company that will reduce greenhouse gas emissions, helping Uruguay to fulfill its Paris Agreement commitments.

The financing includes a loan of $40 million from IDB Invest and another loan of $60 million from IFC, both with a term of 10 years.

The dairy industry is one of the strategic pillars of the Uruguayan economy and incorporates more than 3,900 producers and 20,000 workers, direct and indirect. Its development has a high impact from a social and territorial point of view, contributing to the stability of families in rural areas. It is also essential for Uruguay to increase productivity and develop new markets, continuing to intensify its presence and integration into global value chains. Dairy sector exports to more than 60 markets represent 7 percent of the country's total exports.

As a result of the investment of IDB Invest and IFC, Conaprole will review its environmental and social procedures and will implement an environmental and social action plan aimed at improving its activity and the work of its employees.

This operation potentially contributes to five of the United Nations Sustainable Development Goals: Zero hunger (SDG 2), Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9) and Responsible production and consumption (SDG 12) and Partnerships to achieve the objectives (SDG 17).

About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so they can achieve financial results and maximize the region’s economic, social, and environmental development. With a portfolio of $12.4 billion in assets under administration and 342 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services in response to its clients’ needs in a variety of sectors.

About Conaprole
Conaprole is a leader in the Uruguayan dairy industry with more than 70 percent market share in milk sales and 75 percent of producer referral, with more than 1,900 associates. Conaprole, was created in 1935 from law number 9,526, which merged several cooperatives and companies in order to guarantee the milk supply of Montevideo. Its cooperative business model is based on maximizing the price to the producer with the lowest level of risk possible, while maintaining an efficient, productive and profitable industry to maintain and consolidate in the local market and be competitive in the external market. It is the main exporter of Uruguay and the main exporter of dairy products in Latin America, representing 3 percent of the dairy trade worldwide.

About IFC
IFC, a sister organization of the World Bank and a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 companies worldwide, using our capital, experience and influence to create markets and opportunities in the most difficult areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, harnessing the power of the private sector to help end poverty and boost shared prosperity.