Agrotec III

completed

Agrotec S.A. (“Agrotec” or “the Company”), a wholly owned subsidiary of Agrihold Corp. (“Agrihold”or “the Group”), provides agrochemicals, fertilizers, seeds, technical support, and financing (in the formof credit sales) to farmers and cooperatives in Paraguay. The Group also has subsidiaries operating inParaguay, Uruguay and Brazil. Agrotec comprises 72% of the Group’s assets and 78% of its sales. Agrotec serves approximately 800 farmers and cooperatives in Paraguay. Agrotec operates 12 Regional Distribution Centers as well as its headquarter in Ciudad del Este, in eastern Paraguay. The regional distribution centers are strategically located near major agricultural regions in Paraguay to facilitate rapid delivery of inputs and efficient customer service to its clients. The agribusiness sector is the main driver of the Paraguayan economy, benefiting from the country’savailability of fertile land and water resources, and from favorable climate conditions.  The proposed project will support the operations of Agrotec with the provision of working capital finance. The project will increase access to working capital finance for farmers in Paraguay, who will also benefit from Agrotec’s commercialization services and technical expertise.  The proposed project represents the third investment from IFC in Agrotec. The first one was executed in 2010, and included a short-term working facility, renewable every year up to four times, for an annual amount of US$ 15m. The same structure was replicated in 2014, but increasing the exposure to US$25m. This time, Agotec is seeking a US$25m line and including a long-term component to cover permanent working capital needs and have a more efficient use of the facility.