FMO has disbursed a USD 25mln long term repeat facility for the Latin American Agribusiness Development Corporation (LAAD). Since the transaction is fully in line with the strategy of the Actiam-FMO SME Finance Fund, the Fund participates in the FMO loan to LAAD with a US$ 3,0 mln commitment.
LAAD is a financial institution that provides loans to medium-sized agricultural enterprises in the agribusiness sector in Latin America. SME financing in Agribusiness is considered to be a difficult market for local financial institutions. By providing long term finance to these agricultural SME’s, LAAD enables these companies to create impact and to successfully compete with their larger competitors. Projects financed by LAAD in 2015 created over 9,000 new jobs and will generate an additional USD 159mln per year in much needed foreign currency for the region.
In 2015, LAAD marked its 45th anniversary, reflecting its continued resilience and relevance to the agricultural financing sector. FMO has been supporting LAAD since 2002. The new facility will enable LAAD to further increase their loan portfolio while improving the maturity-profile of LAAD’s funding.
Suzanne Gaboury, Director Agribusiness FMO said: “The activities of LAAD perfectly fit in FMO’s strategy to promote inclusive financing in the agribusiness sector. We are proud to be able to further support LAAD through this transaction.
Gustavo Martinez, CFO LAAD commented: “We are thankful to FMO for its continued support to LAAD’s mission. This additional funding will reinforce our ability to fuel the sustainable growth of the agribusiness sector in Latin America and the Caribbean.”
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 46 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 9.2 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
Press contact:
Paul Hartogsveld
Senior Corporate Communications
T: +31 70 314 9928 M: +31 6 11589127 E: p.hartogsveld@fmo.nl
