IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, granted a $3 million loan to Banagro to expand its medium-term financing to small and medium-sized enterprises (SMEs) in Chile through a line of green financing.
The loan, with a tenor of five years, will allow Banagro to channel resources to finance the purchase of sustainable irrigation equipment and the reconversion of orchards. These investments promote the increase of productivity and the reduction of water consumption of agricultural SMEs.
In recent years Chile began transforming its agricultural matrix, moving from the production of grains to fruit crops. Access to sources of financing in the medium and long term is one of the main barriers that limit SMEs to be part of this transformation.
Banagro's green financing line seeks to contribute to the development of Chilean sustainable agriculture and generate productive benefits for agricultural SMEs.
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 US$11.6 billion under management and 330 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
Banagro S.A., is the financial division of one of the main Chilean agroindustrial economic groups called Empresas Sutil S.A. Banagro was founded in April 2011 to advise and deliver customized financial solutions, both short and long term, to small and medium-sized Chilean producers and agroindustries. Taking advantage of the vast experience acquired by Empresas Sutil in its more than 35 years of history, Banagro has become a benchmark in agricultural financing in Chile, thanks to its knowledge, closeness and flexibility, it has been able to develop financing alternatives according to the needs of its clients. In 2017 Banagro, based on its commitment to the sustainable development of agriculture in Chile, launched its Green Line, with the objective of financing irrigation and/or reconversion projects, which have a sustainable environmental impact (water footprint, carbon footprint), social and economic. To date, projects have been financed for close to $1,000,000. Banagro, through its seven years of history, has financed more than 1,200 clients. In 2018 it had placements for $70,000,000 distributed throughout Chile, thus becoming a relevant player for agribusiness in Chile.