- This syndicated loan alongside FMO and Rabobank marks FinDev Canada's first agribusiness investment in Argentina
- The loan was provided to Argentina’s largest grain originator and agricultural inputs supplier
The Hague, April 11th, 2023: FMO, the Dutch entrepreneurial development bank, alongside Rabobank and FinDev Canada, signed an USD 80 mln syndicated loan to Argentina’s largest grain originator and agricultural inputs supplier, Asociación de Cooperativas Argentinas (ACA). The facility is aimed at providing the financing the cooperative needs to execute its grains and oilseeds export business model. DBA Corporate Finance acted as financial advisor to ACA.
Because of its global competitiveness, the agricultural sector in Argentina has experienced significant growth in recent decades, making it a key player in international markets. The country has high soil fertility, so less fertilizers are needed, and due to favorable climate conditions, Argentina requires less usage of pesticides. Also, the agricultural sector benefits from favorable geographic conditions: the vast majority of production of commodities takes place in a 500-kilometer radius from the main river, reducing transport costs. These conditions have enabled Argentina to become a major exporter of agricultural products, underscoring its importance in the global market.
ACA is an Argentinian second-grade cooperative that was founded in 1922. The company brings together 143 first-degree cooperatives, which in total reaches over 50,000 farmers. With its considerable size, asset base, origination network, and reach across the country, ACA is a flexible player in the agribusiness market within Argentina.
ACA focuses on providing the best solutions, products, and services for its member cooperatives and the wider Argentinian farming community. Essentially, the company functions as a “one-stop shop” for farmers, providing agricultural inputs, seeds, logistics via truck, ship and rail, storage, and every other imaginable service farmers may need. Moreover, the company also invests in its digitalization strategy, such as online marketplaces for agri-inputs and virtual wallets, aimed at improving the profitability of farmers’ businesses. With a strong track record of over 100 years, ACA has established itself as a trusted partner of Argentinean farmers.
Through this syndicated facility, ACA will benefit from stable funding to carry out its operating and exporting activities. This syndicated transaction re-stablishes the relationship that FMO and ACA had since 2003, reaffirms Rabobank’s commitment to its long-term client and commemorates the start of ACA’s and FinDev Canada’s partnership.
Pieternel Boogaard, Director Agribusiness, Food and Water at FMO, said, “We are excited to have re-established our partnership with our long-term customer Asociación de Cooperativas Argentinas. Through this investment, FMO is supporting a knowledgeable and local partner directly connected to the farmer community in Argentina, as ACA is a farmer-owned company directly invested and acting in the long-term interests of farmers. Above all, we are pleased to have re-established our relationship with ACA and have arranged this syndicated facility with participation from other investors, demonstrating our additionality through these difficult macroeconomic conditions affecting the Argentinean economy and agribusiness sector.”
"We are thrilled to partner with Asociación de Cooperativas Argentinas to provide support to the country's agriculture sector through much needed long-term financing," said Paulo Martelli, Chief Investment Officer of FinDev Canada. “We understand how critical it is to invest in agriculture, especially increasing the productivity and competitiveness of the sector, to support sustainable economic growth and development."
Rafael Bonasso, Rabobank Argentina Rep. Office Representative, said, “Rabobank has provided continued support to agribusiness companies in Argentina for 30 years, and continues to strengthen its commitment to the country, the sector and its clients. Leading this USD 80 mln medium term syndicated loan for ACA evidences this. ACA's cooperative nature and relevance as Argentina’s largest grains and oilseed originator make the company a natural partner for Rabobank. We look forward to continue providing support to ACA and all our clients in the coming years.”
Mario Rubino, ACA’s CEO said, “ACA has always prioritized long-term relations, and FMO as well as Rabobank have been supporting our cooperative for more than 20 years. Additionally, we would like to welcome FinDev Canada as a new financial partner to our entity. This transaction comes at the start of ACA’s second century, with a firm determination to continue and expand the support to our Cooperatives and the Argentine farmer, while enhancing high sustainable standards with the support of these major internationally renowned financial institutions.
Through this USD 80 mln syndicated facility, the syndicate can support a client with a strong financial and operational track record through extenuating circumstances, contributing to food security in the context of the Russia-Ukraine war. Part of the financing will be used to develop an app which will help farmers adhere to agricultural best practices and utilize agricultural inputs more efficiently.
About FinDev Canada
FinDev Canada is Canada's development finance institution dedicated to supporting sustainable and inclusive private sector growth and investment in emerging and developing markets to advance women's economic empowerment, climate action and local market development. FinDev Canada is a subsidiary of Export Development Canada (EDC). More information about FinDev Canada is available at www.findevcanada.ca.
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors that have high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. For more information: please visit www.fmo.nl.
Established in the Netherlands, Rabobank is a leading global bank with over 1,000 offices in 38 countries. Rabobank operates on the basis of cooperative principles with strong agriculture roots, thus boasting a track record of over a century in financing agribusiness through long-term relationships. Rabobank is committed to making a substantial contribution to welfare and prosperity in the Netherlands and to feeding the world sustainably, aiming to be the leading bank in the field of food and agri worldwide through its unique Banking for Food vision. Rabobank has been active in Argentina since 1993 as a Representative Office, and over the years, has built strong relationships across the industry.
Asociación de Cooperativas Argentinas (ACA) is a second-grade cooperative (association of first grade cooperatives) incorporated in 1922, turning its first 100 years in February last year. ACA brings together 143 first-degree cooperatives all across 11 provinces of Argentina, reaching nearly 50.000 farmers. It remains the oldest second-degree coop organization active in Argentina providing comprehensive solutions to cooperatives and farmers by creating value in a competitive and sustainable manner, contributing to market transparency and maintaining cooperative principles and values. It is the top grains' originator (more than 24 million tons in 2021/2022 crop and 20% market share) of the country and a key vehicle for grain exports. ACA also provides storage and logistics, which is supported by an adequate capacity, efficient performance of its inland elevators and port facilities, as well as provider of agricultural inputs to small and medium size farmers.
DBA Corporate Finance (DBA) is an independent advisory company, which supports medium and large companies in Latam since 1998, throughout different sectors, including Agribusiness. For more information: please visit www.dba.com.uy
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