Agrofinanzas

completed

The project consists of an IFC investment of approximately $10 million to Agrofinanzas S.A. de C.V., Sociedad Financiera de Objeto Limitado (Agrofinanzas or the company) to be on-lent to small and medium agribusiness enterprises (Agri-SMEs) in Mexico. Agri-SMEs include farms, agricultural product processing and extends to related services. The IFC investment will directly support the company’s portfolio growth.Agrofinanzas is a non-bank financial institution specialized in lending to Agri-SMEs. Agrofinanzas began operations in 2005. As of March 2007, the company’s total assets and total equity amounted to $20.6 million and $5.8 million equivalent, respectively. At present, most of Agrofinanzas’ borrowings come from FIRA (Fideicomisos Instituidos en Relacion con la Agricultura), a group of trusts managed by the Central Bank that support the growth of the agribusiness and rural sectors in Mexico. The IFC financing will support the company’s funding diversification effort.