IDB Invest, a member of the IDB Group, provided a $30 million loan to LAAD Américas N.V., a subsidiary of Latin American Agribusiness Development Corporation S.A. (LAAD). The financing, with a 5-year tenor, will support small and medium-sized companies (SME) in the agribusiness sector financed by LAAD, which have been affected as a result of the crisis generated by COVID-19.
This financing will allow LAAD to continue channeling resources to SME in the agricultural sector, helping LAAD’s clients to maintain jobs while benefiting low-income rural communities in the region and contributing to the generation of hard currency.
In response to the crisis caused by the pandemic, IDB Invest and LAAD are joining forces to protect, alleviate, and reignite the growth of agricultural SME in the region. The aim is to accelerate the pace of recovery, given the liquidity crisis generated by interruptions in global food supply chains and cost increases, as a consequence of the operational adjustments made to comply with the new security protocols for the pandemic.
This deal potentially contributes to three United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Zero Hunger (SDG 2), and Decent Work and Economic Growth (SDG 8).
IDB Invest will provide LAAD with long-term financing in the terms required for its loan portfolio, which are generally not available to the SME segment in the agribusiness sector.
About IDB Invest
IDB Invest, a member of the IDB Group, 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 $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Latin American Agribusiness Development Corporation S.A. (LAAD), is a private investment and development company. LAAD finances and carries out private agricultural projects in Latin America and the Caribbean in all its phases of production, process, storage, service, technology and marketing in the areas of agriculture, livestock, forestry and fishing. In 2019, LAAD reached record levels in loan disbursements and net income, driven by 343 new loans disbursed in 15 different countries. Total disbursements reached more than $306.6 million. LAAD-funded projects in 2019 generated approximately $1.41 billion in annual revenue, and their funding helped create 9,216 new jobs and $280 million in additional foreign currency for the region