IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, has signed a loan of up to $50 million with Banco Patagonia of Argentina. The financing is aimed at supporting investment projects of small and medium enterprises (SME) with a focus on the agricultural and agroindustrial sector.
Access to better financing is essential for the growth of small and medium agricultural producers in Argentina. The funds, with a term of up to seven years, will be allocated to the acquisition of capital goods, such as agricultural machinery, goods for forestry, as well as investment for complementary works in the wine and livestock sectors.
Agrifood chains are a fundamental gear of the Argentine economy. However, the companies that make up this sector face limitations when it comes to obtaining external financing, mainly due to the gestation and seasonality periods that characterize their production and profitability. The project will allow Patagonia to finance subprojects in companies with a maximum annual turnover of $40 million, belonging to these sectors: agricultural and agroindustrial; small and medium enterprise agrobusiness; fishing and winery.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About Banco Patagonia
Banco Patagonia, a member of Grupo Banco do Brasil, the most important financial conglomerate in Latin America, has more than 200 points of service in Argentina. It is today one of Argentina’s main banks, with product, services and latest generation technological developments for all segments of customers, people, large companies, public sector, agribusiness, SMEs and corporate.