IDB Invest announces agreement with Molinos in Argentina to boost exports

May, 22, 2023 Posted by Gabriel Malheiros

Week 202324

IDB Invest has announced signing an agreement with Molinos Agro S.A., securing up to USD 250 million for processing and exporting oilseeds and cereals. The financing comprises USD 50 million in direct financing and USD 200 million in mobilized funds, with Banco Santander and Rabobank leading the coordination efforts to finalize the financial transaction.

This project aims to bolster agricultural production and promote exports and purchases within the national production chain. With financial support, Molinos Agro will expand its oilseed processing capabilities and increase the export of grains and by-products. Moreover, the project will encourage sourcing of raw materials from local suppliers.

James Scriven, the general manager of IDB Invest, emphasized the criticality of ensuring food security in building resilient, equitable, and prosperous societies. He further expressed their commitment to directing more investments towards Argentina and the region, reinforcing food exports and strengthening value chains.

This strategic agreement with Molinos Agro forms part of a broader set of potential financing initiatives in Argentina, which could reach USD 1 billion by 2023. The aim is to bolster various key sectors and attract private investments for impactful projects, thus narrowing development gaps.

IDB Invest is actively enhancing capacity in the agro-industrial sector while preparing financing opportunities to improve technology infrastructure. Additionally, the organization is evaluating renewable energy and lithium production projects to support the country’s energy matrix diversification. Simultaneously, IDB Invest maintains active foreign trade financing lines with nine Argentine financial institutions.

In line with its commitment to sustainable finance, the entity continues to promote the Sustainable Finance Protocol and provide financing for small and medium-sized companies in the financial sector, thus driving financial inclusion and fostering sustainable projects. Since 2016, over USD 2.6 billion in financing has been channeled through private sector projects in Argentina, generating positive impacts in areas such as job creation, social development, and renewable energy. Such achievements were made possible through utilizing IDB Invest’s capital resources and the mobilization of additional investments by its partners. In 2022, IDB Invest increased its support for projects in Argentina, reaffirming its dedication to the country’s development.

The project with Molinos Agro is expected to contribute to various United Nations Sustainable Development Goals (SDGs), including Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), and Partnerships to Achieve the Goals (SDG 17).

Source: Portal Portuario

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