IDB Invest provided a $40 million loan to LAAD Americas N.V. and Agronegocios LAAD S.A. de C.V. SOFOM ENR, both subsidiaries of Latin American Agribusiness Development Corp (LAAD). The seven-year financing will support small and medium-sized enterprises (SMEs) in the agro-industrial sector in Latin America and the Caribbean to promote food security with a focus on food access and availability. The financing could potentially be augmented by an additional third-party loan of up to $40 million, bringing the total funding to $80 million.

The project will help LAAD to continue channeling resources to SMEs in the agricultural sector, which will support the increase in production and productivity in the region, contributing to improved exports. The financing will allow LAAD's clients to continue generating employment, especially in rural areas.

Agricultural development is one of the most important means of ending extreme poverty and boosting shared prosperity. Financing with a sustainable approach promotes the growth and long-term sustainability of the productive sector.

The financing also includes advisory services to support LAAD's capacity building to manage physical and transition risks related to climate.

“IDB Invest’s investment in SMEs in the agribusiness sector, together with LAAD, underscores our commitment to food security and the promotion of sustainable practices that benefit the entire region,” said Marisela Alvarenga, Head of Industries and Cross-Cutting Topics (a.i.) at IDB Invest. 

Gustavo Martínez, President of LAAD, said: “This loan is aligned with our mission to promote sustainable economic, environmental and social development in Latin America. We are proud to work with IDB Invest to achieve a positive impact in the region.”

The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), Partnerships for the Goals (SDG 17).

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website www.idbinvest.org/en.

About LAAD 

Latin American Agribusiness Development Corp. (LAAD) is a private investment and development company. LAAD finances and carries out private agricultural projects in Latin America and the Caribbean in all phases of production, processing, storage, service, technology and marketing in the areas of agriculture, livestock, forestry and fisheries.