Argentine agribusiness receives a Deal of the Year honor

by Holly Demaree-Saddler
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Bonds and Loans Latin America
Awards recognize outstanding achievement from across the Latin American credit markets. 
Photo courtesy of Bonds & Loans Latin America.
 
BUENOS AIRES, ARGENTINA - The 2017 financing to the Argentine agribusiness company Renova has been awarded "Natural Resources Finance Deal of the Year," by the London-based Bonds & Loans publication in its Deals of the Year awards. These awards recognize outstanding achievement from across the Latin American credit markets. 

Led by the International Finance Corporation (IFC) and Rabobank as mandated lead arrangers and joint bookrunners, the $410 million financing package committed to Renova on May 2017, constitutes the largest agribusiness financing mobilized in Argentina.  It funded the expansion of Renova's crushing facilities and to enhance its port infrastructure, with the aim of improving the logistics and competitiveness of the oilseeds and grains supply in the country. Renova is a joint venture between Vicentin and Oleaginosa Moreno Hermanos. 

"We are delighted to receive this important recognition to Renova and the 2017 financing package," said Sergio Gancberg, Renova's president. "We acknowledge the key role that IFC and Rabobank played in mobilizing additional funding from other development and commercial banks to support our expansion plans." 

The financing consisted of $75 million from the account of IFC, a member of the World Bank Group, $75 million from Rabobank, and $260 million from development finance institutions and commercial banks that joined the initiative in support of the company's expansion. These were: IIC, FMO, ING, Santander, Natixis, ICBC, ABN, and Itau. It is relevant to note that IFC and IIC acted as lenders of record. 

The unique structure of the deal, its long tenor, and strategic importance for the country's agribusiness sector make this deal a model of partnership among international development finance institutions and commercial lenders in support of a strategic project. 

Renova is a joint venture between Vicentin S.A.I.C. and Oleaginosa Moreno Hermanos S.A.C.F.I.Y.A. (Glencore). Renova operates an integrated soybean crushing facility and port in Timbues, Santa Fe, and a biodiesel producing facility in San Lorenzo, Santa Fe. Renova's existing complex in Timbues contains a crushing facility with a processing capacity of 20,000 tonnes per day; one of the country's largest ports; a lecithin plant; and storage facilities.

"With IFC and Rabobank as mandated lead arrangers, Renova executed an excellent multi-tranche syndication, which allowed it to secure funding for capacity expansion at some of the longest tenors seen in Argentina to date," said Jonathan Brandon, Managing Editor of Bonds & Loans.  "This was a standout transaction that helped carve a path for borrowers in Argentina's agricultural sector and the wider market", he noted. 

Bonds and Loans received over 300 deals submitted across 17 categories. The recognition of industry excellence was determined by Bonds & Loans editors based on a selection process involving examination of case studies, in-depth feedback and discussions with market participants; followed by an online vote - making it the only awards voted for by the industry. Presentation of the awards will take place at a reception, in Mendoza, Argentina on March 22.
 
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