Interagrovial

Interagrovial S.A. will grant loans to its clients to purchase new machinery based on specific eligibility terms acceptable to IDB Invest and documented with promissory notes.

IDB Invest will acquire bonds for up to US$30 million issued under a private offering by a trust to be established under the laws of Uruguay (Fideicomiso Financiero Interagrovial). The trust will use the financing to acquire the loans originated by Interagrovial.

Brief Description of the Project:

Interagrovial is a company engaged in the sale of machinery for agricultural, forestry and construction activities, as well as for the landscaping of parks and gardens. It is the official John Deere representative in Uruguay. It also sells replacement parts, lubricants, additives, paints, refrigerants, and other products and provides technical assistance, training courses (mechanical repair and machinery operation, among others), and control of equipment operating parameters remotely and in real time (through remote access) ([1]).

In addition, Interagrovial offers services to provide harvesting machinery to owners of forest plantations. Under a contract, the operator of the machinery provided by Interagrovial is designated by the owner of each plantation and Interagrovial provides services to repair, wash, fuel, and mechanically maintain the machinery supplied. As these activities are carried out along the harvest front, facilities suitable for workshops, offices, and temporary housing must be moved to the site, inputs must be provided along the work front, and waste must be removed from the front. Interagrovial is responsible for moving personnel to the harvest site, assigning them in three shifts in order to achieve continuous operation for 24 hours a day for six days a week over a period that can last as much as six or seven months

Interagrovial has its headquarters in Montevideo and main branches in Florida, Tacuarembó, Paysandú, Young, Soriano, Mercedes, and Ombúes de Lavalle. The size of the workshops in those branches ranges from 600 to 1,000 square meters. The company also has small branches where it only sells replacement parts in the towns of Lascano, Durazno, Tarariras, Colonia Valdense, Salto, and Tomás Gomensoro.  It has a fleet that includes 33 of its own vehicles and 32 leased vehicles. At the time of the environmental and social due diligence assessment, Interagrovial had 844 machines in stock, including new and used units.