IDB Invest, the private sector institution of the IDB Group, signed a USD 45 million A-loan with the Latin American Agribusiness Development Corporation (LAAD), a financial intermediary that finances small and medium-sized agribusiness projects in Latin America and the Caribbean.
The IDB Invest loan, which expands LAAD's funding sources and has a tenor of up to seven years, will go to seven countries in the region: Peru, Chile, Colombia, Costa Rica, Guatemala, the Dominican Republic and Nicaragua.
The operation allows IDB Invest to positively impact a large number of micro, small and medium enterprises (MSMEs), given LAAD's knowledge of the agribusiness sector in the region. The financing allows LAAD to expand its loan portfolio in the medium and long-term.
The objective for LAAD is to continue financing projects that, with a focus on sustainability, involve all stages of production, storage, technology, and commercialization.
The majority of LAAD's loans are aimed at developing permanent crops, agricultural machinery and equipment for associated agricultural infrastructure. The IDB Invest operation also incorporates an evaluation and improvement of LAAD's environmental and social management system.
In addition, access to credit from these agricultural companies allows regional developments such as the increase of food production in a sustainable manner, the creation of employment in rural areas and the growth and diversification of export earnings.
(This is a reproduced news from IDB as it is. Devdiscourse bears no responsibility towards grammatical or factual errors that may have been presented in the report.)