IFC, IDB Invest and Rabobank grant US $ 100 million to San Miguel
IDB Invest, a member of the Inter-American Development Bank Group, IFC, a member of the World Bank Group and Rabobank arranged a $100 million financing package for San Miguel, the largest citrus exporter in the Southern Hemisphere.
The financing will complement the capital structure of San Miguel, whose export-earning business is a large employer of direct and indirect labour in each community where it operates. In the Argentine province of Tucumán, it employs more than 4,500 people each season.
The package consists of $27.5 million from each IDB Invest and IFC, and $45 million from Rabobank. IDB Invest and IFC will also advise San Miguel on good environmental practices in key areas, such as the treatment of wastewater.
The up to 9-year financing package offers a longer-term tenor than currently available on the market. Long-term financing is essential for the citrus industry, as it takes at least five years for a citrus tree to bear export-quality fruit. The financing will contribute to San Miguel’s $132.5 million investment plan to grow its sustainable, customer-oriented business model, as a world leader in citrus production and in the processing of value-added citrus products. It will help San Miguel expand its operations in Argentina, Uruguay, Peru and South Africa on its different products—lemon, orange, mandarin, table grape and avocado.
