Agrofertil Ext

completed

Agrofertil (or the “company”), founded in 1993, is one of Paraguay’s leading crop input distributor and agronomic services companies. The company currently assists about 1,400 farmers, cooperatives and small distributors providing technical support, agricultural inputs and pre-harvest financing. The company’s headquarters are in Ciudad del Este, and it has a network of 12 silos which serve as distribution centers for agricultural inputs and as storage for grains with a total capacity of 200,000 tons of grain storage.In 2011, IFC committed a US$15 million working capital facility to Agroferil (project #30278) to support the pre-harvest financing needs of its network of farmers. The loan was structured as a 5-year facility (with an annual clean-up) secured by a guarantee trust. The facility worked well, being repaid from traders and renewed four times (i.e. five disbursements with the last renewal in May 2015 and final maturity on May 15, 2016). With this new project, the Group is seeking increased financing to support its continued growth in Paraguay.This Project consists of providing Agrofertil with (i) an up to US$15 million short-term working capital facility to be cleaned-up and re-committed annually up to four times (i.e. total commitment of up to US$15 million per year for a total commitment of US$75 million in the 4 years period) with the same structure as the currently outstanding facility; and (ii) an up to US$10 million 5-year loan with the same as the current facility, collateral structure but without clean-up.