IDB Invest has provided financing of up to $10 million with a tenor of 39 months to LAR S.R.L. (LAR), a company that manufactures agricultural inputs and grains in Paraguay and one of the main agricultural cooperatives in Brazil. LAR is part of LAR Cooperativa Agroindustrial.
IDB Invest will support the agricultural production cycle in Paraguay with this project, allowing LAR to increase the provision and financing of agricultural inputs for small and medium producers.
Given the rising prices for agricultural raw materials and inputs, IDB Invest’s support is key to strengthening value chains in the agricultural sector in Paraguay and alleviating food security challenges both in Paraguay and in the region.
Likewise, the financing will help LAR to increase the annual purchases of grains from producers, of which 80% come from small and medium-sized producers, fostering local grain trade and promoting exports of LAR grains to Brazil.
The project is expected to help create more than 160 permanent direct jobs and to implement improvements in LAR’s environmental and social areas through an Environmental and Social Action Plan.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12) and Partnerships for the Goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Since 1996, LAR has been operating in the Paraguayan agribusiness sector, working to provide the best solutions for the market and always thinking about the development of national agriculture. The company started in Brazil, where LAR Cooperativa Agroindustrial’s headquarters are located, and where all LAR activities are supported. Together they work toward the growth and expansion of LAR within Paraguay. The activities of trading grains and agricultural inputs are distributed in Paraguay’s departments, generating development and innumerable opportunities for the communities through its 22 grain reception units.
This article was originally published by IDB