Garantizar SGR II

The proposed operation consists of a lending program, preferably in local currency. Its objective is to finance eligible projects via loans to small and medium-size enterprises (SMEs) in the Argentine Republic, with a corporate guarantee from Garantizar SGR. These small and medium-size enterprises require either medium or long-term financing in order to carry out their operations. Financing with appropriate terms will make it possible to generate direct and indirect employment and improve the financial structure of SMEs, which currently have limited access to financing with terms of more than one year.

The proposed transaction includes two additional components: a contribution to Garantizar’s capital stock and a contribution to the risk fund. These components amount to approximately ARG$2 million.

Garantizar is a mutual guarantee association (sociedad de garantía recíproca, or SGR) that provides loan guarantees to its beneficiary shareholders. The guarantees, which make it easier for the members to obtain credit, are backed by equity contributed by the guarantee association’s sponsoring shareholders. Garantizar SGR is one of Argentina’s oldest and largest SGRs. Garantizar’s main shareholders, which are also sponsoring shareholders, are Banco de la Nación de Argentina and Banco de la Ciudad de Buenos Aires. The private sector–beneficiary shareholders in agribusiness and manufacturing–accounts for a majority ownership, with more than 51% of Garantizar SGR’s shares.