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LAAD 2018: A new credit line to support agricultural SMEs in Mexico
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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17677214.07
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Financing details
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USD 20m loan
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Customer
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AGRONEGOCIOS L.A.A.D.
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Type of customer
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Company
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Country of headquarters
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Mexico
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Project number
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PZZ1365
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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.
LAAD is a financial institution specialized in financing agricultural SMEs in Latin America. PROPARCO’s loan will allow LAAD to finance SMEs and microenterprises in the agriculture sector in Mexico.
This is PROPARCO’s 3rd operation with LAAD, demonstrating both a longstanding partnership and the major needs of the local agriculture sector. PROPARCO allocated a first USD 15m loan in 2010, followed by a second USD 20m loan in 2015.
Client presentation
LAAD Group, a client of PROPARCO for nearly 10 years, is composed of several subsidiaries in Latin America and the Caribbean. The Group is specialized in financing SMEs in the agroindustrial sector. All the subsidiaries are ultimately owned by the holding company American Agribusiness Development Corporation S.A. (LAAD Corporation S.A.), located in Panama. This holding company is equally owned by 12 private shareholders, including DFIs (DEG, IFC) and private investors.
Project description
The aim of the project is to support the Group’s financing of its agricultural microenterprise (self-employed)/SME clients in Mexico, one of the Group’s areas with the strongest growth. LAAD especially focuses on financing small-scale agricultural projects in the sectors of market gardening, fruit-growing, horticulture, floriculture, seed production, livestock raising and fishing.
Project impact
The operation will support agricultural SMEs in Mexico via credit lines, which are not readily available from local commercial banks for clients in the agriculture sector. The projects supported by the bank between 2010 and 2016 have contributed to generating an average of some USD 156m of foreign exchange earnings a year.