IDB Invest announces $250 million loan agreement with Molinos agro in Argentina to boost exports

Photo: IDB Invest

IDB Invest has signed an agreement with Molinos Agro S.A. to provide up to $250 million in financing for the processing and export of oilseeds and cereals. This includes direct financing of $50 million and mobilized funds of $200 million, with Banco Santander and Rabobank as lead arrangers to complete the financial package.

The project aims to boost agricultural production, promote exports, and stimulate domestic supply chain transactions. The financing will enable Molinos Agro to expand oilseed processing, increase grain and by-product exports, and foster local supply chain sourcing of raw materials.

“Food security is a vital cornerstone for resilient, equitable, and prosperous societies,” said James Scriven, CEO of IDB Invest. “We are committed to channeling greater investment to Argentina and the region, bolstering food exports and reinforcing value chains.”

This strategic agreement with Molinos agro is part of a set of potential financing in Argentina that could reach $1 billion by 2023, aimed at boosting key sectors and attracting private investment towards impact projects to close development gaps. IDB Invest is strengthening the capacity of the agro-industrial sector and preparing financing to improve technological infrastructure. Additionally, it is evaluating renewable energy and lithium projects to support the diversification of the country’s energy matrix. IDB Invest also has active trade financing lines with nine financial institutions in the country.

In addition, IDB Invest actively promotes the Sustainable Finance Protocol and financing for SMEs in the financial sector to drive financial inclusion and green initiatives. Since 2016, it has mobilized over $2.6 billion in financing for private sector projects in Argentina, generating positive outcomes in job creation, social development, and renewable energy. By leveraging its own capital resources and mobilizing partners, IDB Invest aims to attract more investment to the country. In 2022, IDB Invest further increased its support for projects in Argentina, reaffirming its commitment to the country’s development.

The project with Molinos agro is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): 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 Inter-American Development Bank 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.

About Molinos agro S.A

Molinos agro S.A., a company listed on the Buenos Aires Stock Exchange since 2017, was born in July 2016 as a result of the corporate reorganization that occurred in Molinos Río de la Plata S.A. (founded in 1902). Until then, it represented the Bulk Division within the general structure of Molinos Río de la Plata S.A. It has two main activities: industrialization and marketing of grains and by-products derived from soybeans, and marketing of cereals.