WASHINGTON, USA – IDB Invest provided a $40 million loan to LAAD Americas N.V. and Agronegocios LAAD S.A. de C.V. SOFOM ENR, both subsidiaries of Latin American Agribusiness Development Corp (LAAD).
The seven-year financing will support small and medium-sized enterprises (SMEs) in the agro-industrial sector in Latin America and the Caribbean to promote food security with a focus on food access and availability. The financing could potentially be augmented by an additional third-party loan of up to $40 million, bringing the total funding to $80 million.
The project will help LAAD to continue channelling resources to SMEs in the agricultural sector, which will support the increase in production and productivity in the region, contributing to improved exports. The financing will allow LAAD’s clients to continue generating employment, especially in rural areas.
Agricultural development is one of the most important means of ending extreme poverty and boosting shared prosperity. Financing with a sustainable approach promotes the growth and long-term sustainability of the productive sector.
The financing also includes advisory services to support LAAD’s capacity building to manage physical and transition risks related to climate.
“IDB Invest’s investment in SMEs in the agribusiness sector, together with LAAD, underscores our commitment to food security and the promotion of sustainable practices that benefit the entire region,” said Marisela Alvarenga, head of Industries and Cross-Cutting Topics (a.i.) at IDB Invest.
Gustavo Martínez, president of LAAD, said: “This loan is aligned with our mission to promote sustainable economic, environmental and social development in Latin America. We are proud to work with IDB Invest to achieve a positive impact in the region.”
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), Partnerships for the Goals (SDG 17).
