news - FMO enables deep sea grain ports in Argentina

FMO, the Dutch development bank, and Credit Agricole-CIB have arranged a USD 32.5 million facility for the construction of a USD 65 million green-field grain terminal in Quequén, one of the two deep sea grain ports in Argentina.

The terminal will be used to store and load soybeans, soy meal, wheat, corn and barley sourced from the south of the Buenos Aires province and will have a total export capacity of 2 million tons of grains per year. In order to regulate the transport to and from the terminal a separate truck yard will be developed just outside the town of Quequén.

The Terminal is a joint venture of international agri trading companies CHS Inc and Noble Agri together with the Argentinean grain companies Alea, E-Grain, A&J Nari and Lartirigoyen. The project will be funded with 50% equity and 50% debt. The terminal is already for a large part completed and is expected to commence operations in the first quarter of 2016. FMO will provide an 8 year A-loan of USD 16.25 million and Credit Agricole-CIB a 5 year B-loan of USD 16.25 million.

This landmark transaction will add much needed grain export capacity in a strategic deep sea port in Argentina, using the latest technological and environmental standards. The grain terminal will improve supply chain efficiency and will generate additional direct and indirect employment in the region.

“A core focus of FMO is to support agribusiness development in a sustainable and responsible manner”, said Suzanne Gaboury, FMO Director of Agribusiness. “We are proud to be a part of this transaction which we see as an example for similar businesses in the future and will boost employment in the region.” Mauricio Miguel, General Manager of Sitio 0 De Quequén S.A, added that he finds it very important for Sitio 0 to work with a respected institution as FMO. “We hope the agreement will be a first step towards a strong and sustainable relationship.”

About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 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 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl

About CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
Crédit Agricole CIB is the Corporate and Investment Banking arm of the Crédit Agricole Group, the world’s n°9 largest bank by total assets (The Banker, July 2015). The Bank offers its clients a comprehensive range of products and services structured around six major divisions: Client Coverage & International Network, Global Investment Banking, Structured Finance, Global Markets, Debt Optimisation & Distribution, and International Trade & Transaction Banking. The Bank provides support to clients in large international markets through its network with a presence in major countries in Europe, America, Asia Pacific and the Middle East. For more information, please visit its website at www.ca-cib.com.