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Supporting the lending activity of LAAD Group for agricultural and agribusiness SMEs in Latin America

Project

Financial services
LAAD
LAAD
Signature date
Location
Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Nicaragua, Peru, Multi-country Latin America and the Caribbean
Financing tool
Loan
Financing amount (Euro)
22661348
Financing details
USD 25m loan
Customer
LAAD Americas N.V. Agronegocios / LAAD S.A. de C.V. SOFOM E.N.R.
Type of customer
Financial institution
Country of headquarters
Mexico
Project number
PZZ1520
Environmental and social ranking
B
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco is renewing its support to a longstanding client, LAAD Group, to contribute to financing “green” projects.

Client presentation

The multi-country LAAD Group was set up in 1969 and is owned by the holding company Latin American Agribusiness Development Corp. (LAAD Corp.). It is a private financial institution specialized in financing small and medium-sized agribusiness enterprises in 17 countries in Latin America and the Caribbean. LAAD Group’s objective is to support economic, environmental and social development in Latin America and the Caribbean.

Project description

Proparco and LAAD Group have been partners for many years: 3 credit lines were allocated in 2010, 2015 and 2018. 

The project involves a new senior loan with a 7-year maturity for a total amount of USD 25m, comprising USD 12.5m (50% of the loan allocated by Proparco) earmarked for “green” projects. The objective is to help agricultural and agribusiness SMEs improve water use efficiency, adopt sustainable agricultural practices and develop renewable energy production initiatives and systems. 

Project impact

The expected impacts of this project are:

  • Better access to financing for agricultural SMEs in Latin America. Part of the amount of Proparco’s loan (20%) will be used for investments to help agribusiness SMEs adapt to climate change (drip irrigation, drought-resistant and high-yield seeds, etc.).
  • Support for 309 direct jobs over the next 5 years at the bank and about 687 indirect jobs in the SMEs benefiting from the credit line. 

The project should contribute to the following Sustainable Development Goals (SDGs): SDG 1 (No poverty), SDG 2 (Zero hunger), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 12 (Responsible consumption and production) and SDG 13 (Climate action).