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LAAD: A financial institution which supports agricultural SMEs in Latin America
Project
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Signature date
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Location
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Mexico, Multi-country Latin America and the Caribbean
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Financing tool
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Financing amount (Euro)
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18905378.58
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Financing details
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USD 20m loan
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Customer
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LATIN AMERICAN AGRIBUSINESS DEVELOPMENT CORP SA
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Type of customer
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Financial institution
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Project number
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PZZ1255
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Environmental and social ranking
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IF-A
This information is given at the time of signature, without prejudice to any developments in the operation/project.
To support growth in Latin America, it is necessary to focus on financing SMEs in the agricultural sector. This is what LAAD, a financial institution established throughout the region, is doing.
Client presentation
Latin American Agribusiness Development Corporation S.A. (LAAD) is a financial institution specialized in financing small and medium-sized agribusinesses in Latin America and the Caribbean. Its shareholders are large enterprises in the agribusiness and financial sectors, as well as two development finance institutions (IFC and DEG). LAAD has a network of 17 regional offices established in its main countries of operation.
Project description
Proparco’s credit line will support LAAD’s lending activity to agricultural and agribusiness SMEs in Latin America. LAAD’s strategy focuses on financing small-scale agricultural projects in the sectors of fruit-growing, horticulture, floriculture, grain production, livestock raising and fishing.
Project impact
This operation will support the development of agriculture and agribusiness in Latin America, which are key sectors for the development of the region. It will scale up access to financing for agricultural SMEs, which is not readily available from local commercial banks. LAAD’s efforts to encourage and support its clients’ certification processes will contribute to the dissemination of agricultural best practices in Latin America.