IDB Invest, Agrofértil Strengthen Paraguay’s Agricultural Value Chains
IDB Invest has provided $40 million worth of financing for Agrofértil, an agricultural supplies company that is part of the Sarabia Group, one of the most important in the agribusiness sector in Paraguay.
The financing consists of two loans. $30 million correspond to a 4-year revolving credit line to finance the purchase of agricultural inputs. The rest corresponds to a senior loan for up to 8 years to finance Agrofértil's geographic and production expansion plan. The company plans to install a new seed plant with a capacity of up to 16,000 tons, ensuring the supply and quality of these inputs and increasing the seeds’ agricultural yield.
Agrofértil's expansion plan is based on the construction of new silos and the acquisition of existing silos that will expand its storage capacity by 40%, extending its geographical scope to be closer to the producer. This will make Agrofértil increase its local and international grain trade, mainly with Argentina, Brazil, Uruguay and Chile.
This project will contribute to the growth of the agricultural value chain since Agrofértil, with a large presence in the segment of small and medium producers, finances the purchase of agricultural inputs at harvest, additionally providing technical assistance. This provision and financing of agro-inputs is key to supporting the agricultural production cycle in Paraguay.
In addition, the IDB Invest financing will allow the creation of new jobs. This transaction demonstrates IDB Invest's commitment to continue strengthening value chains in the agricultural sector in Paraguay and in the region, helping to alleviate food security challenges, protecting and reactivating the generation of income and foreign exchange, as well as access to financing.
This financing is expected to contribute to three of the Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Responsible consumption and production (SDG 12).
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.
AGROFÉRTIL S.A. is a supplier of agricultural inputs, also involved in the commercialization of grains in Paraguay where agriculture is the most important economic activity and the greatest contribution to the country's wealth. The company began its activities in 1993 and currently has more than 24 stores in Paraguay, including silos and branches, consolidating itself as one of the main leaders in the distribution of supplies and origination of grains.