IDB Invest strengthens the growth of the dairy sector in Uruguay with innovative long-term financing
IDB Invest, a member of the IDB Group, and the Savings and Credit Cooperative (Proleco) have structured long-term financing of up to $20 million for productive projects from Conaprole’s dairy producers, at a preferential interest rate. Conaprole will be the withholding agent for the debt service of the loans that are provided.
The funds committed by IDB Invest may be used by Conaprole's dairy producers to finance investment projects in the Uruguayan dairy sector that include the purchase of farmland, cows, infrastructure, machinery, equipment or permanent working capital, among others. In addition, producers will be able to access long-term loans of up to 13 years with an up to 4-year grace period, under competitive conditions and with a variable repayment scheme based on the volumes of milk produced.
The project is structured in an innovative way to develop a platform that provides long-term financing solutions to dairy producers. This platform has three participants: Proleco, financial institutions for the identification and granting of loans; Conaprole, as an anchor company and withholding agent for debt service payments; and IDB Invest as the financing entity.
In addition, a sustainable increase in food production, job creation in rural areas and growth and diversification of export earnings are expected. The operation will generate a positive impact on a large number of micro, small and medium-sized enterprises (MSME) in the dairy sector in Uruguay.
The operation potentially contributes to four of the United Nations Sustainable Development Goals: Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12) and Partnerships for the Goals (SDG 17).
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 $13.1 billion in asset management and 385 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.
PROLECO is a Capitalization Savings and Credit Cooperative of CONAPROLE dairy producers that has been operating since 1997. Our goal is to provide valuable financial services to meet the funding needs of all partners with a high level of efficiency and professionalization, and taking risks in a cautious and controlled manner. Our vision is to be the leading Cooperative in providing financing solutions to dairy producers referring to Conaprole and other agents in the dairy sector, recognized for its products adapted to this sector, its efficiency and professional management.
We are the main exporter in the country and the leading dairy industry in Latin America, born in Uruguay and made up of more than 1,750 producers. We produce high-quality dairy ingredients with great nutritional value that contribute to the health and well-being of consumers around the planet by exporting to + 50 countries. Day by day, through excellence in processes, we seek to create value for our stakeholders. We achieve it with high standards of quality and food safety, innovation, technology, great commitment from our producers and work team. Always with an eye on the present, thinking and projecting the world of the next generations.