LAAD IV (IFC-37802)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 5, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Latin American Agribusiness Development Corp S.a
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 30, 2018

Disclosed by Bank Jun 9, 2016


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Project Description

According to IFC website, the investment consists of long-term loan to Latin American Agribusiness Development Corporation S.A. (LAAD) and its fully owned subsidiary LAAD Americas N.V. to support growth of its portfolio of medium and long-term loans to agribusiness SMEs in Latin America and the Caribbean. This project is expected to have development impact in the following areas: 

(i) Support access to finance to agricultural SMEs, mostly of these family-owned businesses, which have traditionally been underserved due to high perceived risks;
(ii) Positive impact on rural communities in the region; in FY15 LAAD supported 291 projects in 14 countries which created over 9,000 new jobs; and
(iii) Support to a unique and very successful business model which has consistently grown in a financially and developmentally sustainable way.

People Affected By This Project

(i) Support access to finance to agricultural SMEs, mostly of these family-owned businesses, which have traditionally been underserved due to high perceived risks;
(ii) Positive impact on rural communities in the region; in FY15 LAAD supported 291 projects in 14 countries which created over 9,000 new jobs; and
(iii) Support to a unique and very successful business model which has consistently grown in a financially and developmentally sustainable way.

Investment Description
  • International Finance Corporation (IFC)

The proposed IFC investment consists of an IFC A Loan for up to US$50 million.

Private Actors

Latin American Agribusiness Development Corporation S.A. (LAAD) , an IFC investee company and portfolio client, is a non-bank financial institution specialized in lending to agribusiness SMEs in LAC. LAAD was incorporated in 1969 by a number of major multinational companies engaged in the agribusiness supply chain and financial services with the goal to increase prosperity among rural communities in the region.

LAAD’s shareholders include Monsanto, Cargill, Rabobank, Bank of America, Deere & Company, DEG, Dole, Nestle, Goodyear, JP Morgan, Unilever and IFC, all with equal shares (8.33%).

Contact Information

Latin American Agribusiness Development Corporation S.A.
Office Address: 2800 Ponce de Leon Blvd, Suite 1200, Coral Gables, FL 33134
Telephone No.: (305) 445-1341
Fax No.: (305) 446-8447
Email Address: mailto:laad@laadsa.com
Website: http://www.laadsa.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/