Buenos Aires - November 16, 2016 - IFC, a member of the World Bank Group, will provide a US$50 million financing package to Adeco Agropecuaria S.A. and Pilaga S.A., the argentine subsidiaries of Adecoagro S.A., a leading South American agribusiness firm, to support resource-efficient farming and food processing technologies.
The financing will help the companies, which have operations throughout rural Argentina, to continue developing water-efficient practices in their rice fields and convert water pumps from diesel power to electric power. It will also support climate-smart grain and oilseed production using no-till technology, which helps conserve water and reduce soil erosion. Dairy farm operations, which are fully integrated into the companies' agricultural production, will also be improved by the expansion of breeding facilities and the acquisition of new equipment.
The financing package consists of US$25 million for IFC's own account and US$25 million mobilized by IFC from the commercial banks Rabobank and Banco Itau BBA.
Food and agribusiness are some of the most dynamic and competitive sectors in Argentina's economy, contributing 11 percent of the country's gross domestic product. They represent more than half of Argentina's total exports and generate 20 percent of its jobs. Adecoagro employs about 1,200 people in Argentina, mostly in rural communities in the Central and Northeast regions. It grows soybeans, corn and wheat; grows and processes sunflowers and rice; and is one of the largest dairy producers in the country.
'Our focus is to enhance agricultural productivity while preserving the quality of the natural resources we use. We do this by implementing a sustainable model where we incorporate cutting-edge technologies, train our people and focus on improving productive efficiencies,' said Mariano Bosch, CEO of Adecoagro. 'We are excited to embark on this new partnership with IFC, which is globally recognized as a leader facilitating the implementation of strong environmental and social standards.'
'IFC has had a long engagement with Argentina's agribusiness firms,' said Alzbeta Klein, IFC Director of Manufacturing, Agribusiness and Services. 'This is a dynamic sector. It is critical both for Argentina's economic growth and for the global food system, given its important market share in oilseed and grain, as well as many other foods. Adecoagro has built a solid, environmentally sustainable business model centered on advanced farming practices that improve yields while reducing the use of water, energy and other resources.'
In Argentina, IFC has committed more than $2.3 billion in sustainable private sector projects over the past 16 months. IFC's strategy in Argentina is focused on financing projects with significant development impact for spurring economic growth, innovation and job creation. Priority sectors include agribusiness, infrastructure and renewable energy; competitive manufacturing; strengthening long-term financing for companies, including small and medium enterprises (SMEs); and helping to improve investment climate for business start-ups and SMEs growth.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it's needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
Adecoagro is a leading agricultural company based in South America, with presence in Argentina, Brazil and Uruguay. Adecoagro owns farmland and industrial facilities spread across the most productive areas of the region. Through an efficient and sustainable model, it produces over 1.7 million tons of agricultural products including sugar, ethanol, bio-electricity, rice, milk, corn, wheat, sunflower and soybeans among others. Adecoagro directly employs over 8,000 people, being most of those positions located in rural areas. Adecoagro was founded in 2002 by a group of Argentinian entrepreneurs; currently is listed in the New York Stock Exchange under the ticker AGRO. For more information, visit www.adecoagro.com.