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FMO and Crédit Agricole Corporate and Investment Bank (CACIB) arranged a USD 150 million long-term financing for Argentine agribusiness company Vicentin S.A.I.C. to support its working capital needs for the export of oilseed oils and meals, their by-products, and grains.
Against the backdrop of Argentina’s economic downturn, the size of this transaction shows investors’ confidence in the company. The country’s economy faced a significant downturn last year, characterized by high interest rates, inflation close to 50 percent and the peso losing nearly 50 percent of its value against the dollar. In addition to these economic developments, the agricultural sector was challenged by a drought crippling vital agricultural production.
FMO and CACIB have been strategic partners of Vicentin for more than 20 years, providing financing and sharing global sector knowledge with the company. Vicentin is Argentina’s largest oilseeds crusher. With over 1,300 employees, the company is also a significant employer and an important contributor to rural economies and related communities through its linkages with over 2,000 local farmers and grain intermediaries, who provide oilseeds to the company.
The financing package consists of a 5-year USD 45 million loan provided by FMO and a 3-year USD 105 million loan mobilized from commercial banks, financial institutions, and investment funds. Besides FMO and CACIB, Natixis NY Branch and Cooperative Rabobank U.A. acted as Mandated Lead Arrangers. Other participating institutions are DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Bank of China NY Branch, Finantia UK Ltd and two investment funds of Federated Investors.
Part of FMO’s USD 45 million was funded by the NN FMO Emerging Markets Loans Fund, which is celebrating its one-year anniversary and this transaction is the 25th participation in the fund portfolio.
“During 2018 Vicentin concluded a strong investment process to significantly expand its crushing capacity, its reception, loading, and storage facilities at its ports consolidating its leading position in the sector. The financing package structured by FMO and CACIB will support and strengthen our competitiveness. We are thrilled to partner once again with these world-class relationship banks,” said Vicentin’s CFO Roberto Gazze.
“Vicentin is a key player in the agribusiness and export sectors of Argentina. We have a long-standing relationship and are pleased to continue our support to this growing company,” said Linda Broekhuizen, Chief Investment Officer at FMO. "Long-term capital is not readily available in Argentina. We are proud that, together with CACIB, we were able to mobilize such a strong group of financing partners for this syndicate and thus strengthen Argentina’s contribution to global markets.”
“CACIB has been an active financial partner to Vicentin through much of its history providing financial solutions to the group in its growth trajectory”, said Guilherme Falcao, Head for Global Commodities Finance Latina Americas. “It is an honor for CACIB to co-lead once again with FMO, a Structured Syndicated pre-export financing for a historical client like Vicentin, Moreover, 2019 will be remembered as a record harvest for Argentina”, said Sebastian Gurmendi, Senior Country Officer for CACIB Argentina.
|The unloading of soy beans|