IDB Invest, a member of the Inter-American Development Bank (IDB) Group, grants a revolving credit line of $15 million to Tecnomyl, a family business that produces and markets agrochemicals in Paraguay.
Through the credit line, the financing that Tecnomyl provides to its clients to import raw materials for the production of agrochemicals can be extended up to a period of 360 days. The company's agricultural products sales are expected to increase 17 percent over 2018 and its regional expansion in Brazil and Bolivia will be strengthened.
To a large extent the agricultural production sector in Paraguay is an importer of manufactured products and, to a lesser extent, of raw materials for local production related to the cultivation of soybeans. In both cases, distributors and producers need to buy the products in advance and finance their customers from planting to harvest.
This operation is expected to potentially contribute to five of the United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8); Industry, Innovation and Infrastructure (SDG 9); Reduction of Inequalities (SDG 10); Responsible production and consumption (SDG 12); and Partnerships to achieve the objectives (SDG 17).
The IDB Invest project also incorporates an action plan to implement improvements in environmental procedures and in the corporate governance of Tecnomyl.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (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 enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.4 billion under management and 342 clients in 24 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
Founded in 1991, Tecnomyl has the firm policy and conviction of offering solutions to the needs of the agricultural–livestock sector, with a view to the future, betting on innovative technologies, engaging with its customers, society and its collaborators, and offering quality assurance in the various production processes. Tecnomyl is the leading agrochemical formulation and marketing company in Paraguay. Currently, it is among the top three companies in the Bolivian market and seeks to expand its business to countries such as Brazil, Uruguay, Colombia, Venezuela and Mexico with more than 80 registered products.