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FMO investment provides stable outlook for ACA

ACA is an association of cooperatives that was founded in 1922 and that currently has 155 cooperatives associated that represent 80.000 members in total. ACA is market leader for grain shipments through her ports, shipping 10,8% of the country’s production. Because of its strong growth profile and continued solid track record, ACA aims to make an investment to increase storage capacity and improve its efficiency and logistics. Total investment will be USD 23.5 million, USD 15 million of which will be provided by FMO. The remainder will be paid for by ACA itself.

Through financing ACA, FMO indirectly stimulates the agri sector in Argentina, which has been and will continue to be the driving force behind the country’s development, benefiting other related sectors. It is also one of the main sources of hard currency through grain exports and by-products. Argentina maintains comparative advantages in the agricultural sector with regard to other countries, achieving record production levels year after year. As ACA is a cooperative, the effect of the FMO loan reaches 80,000 members which creates a substantial development impact.

FMO's facility has a tenor of seven years. This kind of long term funding is scarce in Argentina. FMO is comfortable with this kind of product structure due to its successful cooperation with ACA in the past. FMO provided a trade finance facility in 2002 to ACA right after the 2001/2002 crisis. This facility enabled ACA to keep Argentina's agricultural production and exports moving, thus making a significant contribution to mitigating the depth of the country's economic crisis. The financing also helped ACA to continue and to expand its business. In 2005 the facility was changed to long term finance and it was then used for investments which enabled ACA to grow (e.g. port facilities).

The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. FMO's investment portfolio is EUR 3.4 billion, FMO is one of the largest bilateral development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.

For further information you can contact:

Nicoline van Slingelandt

Communications Officer (PR)

T: +31 70 314 9790  

M: +31 622 563 047

E: n.van.slingelandt@fmo.nl