Photo courtesy of Renova.
The IFC said the financing will be used to increase the plant’s soybean crushing capacity by 50%. Funding also will be used to build a new grain port that will double the port’s loading capacity, the IFC said. Currently, Renova’s facility in Timbues contains a crushing facility with a processing capacity of 20,000 tonnes per day, a lecithin plant and storage facilities.
Under terms of the agreement, IFC will provide $75 million, Rabobank will supply $75 million, and $260 million will come from other development finance institutions and commercial banks.
“This investment is part of IFC’s commitment to support a vibrant agribusiness sector in Argentina which is a key contributor to economic and social growth”, said David Tinel, IFC manager for Argentina, Chile, Paraguay and Uruguay. “It will also enhance port infrastructure, an essential driver to improve logistics and competitiveness in the oilseeds and grains supply chain in Argentina.”
With about a 45% share of global trade, Argentina is one of the largest and most competitive exporters of soybean oil and meal.
IFC has been supporting the grains and oilseeds sector in Argentina through investments in infrastructure, processing and inputs distribution and financing working capital needs. IFC’s investments in the sector over the last 25 years, including mobilization, have exceeded $1 billion.