Argentine agro-industrial sector strengthened with loan

(Caracas, March 15, 2011).- For construction of a soybean crushing plant in Santa Fe province, which will increase Argentine exports, CAF - Latin American development bank - approved an A/B loan for US$239 million for Renova SA, currently the largest producer of biodiesel in the country.

"With this loan, CAF continues to support the productive sectors of Argentina and – in this particular case – agro-industry. The project will increase the sources of foreign exchange by boosting exports and creating jobs for over 250 people," Enrique García, president & CEO of the multilateral financial institution, said.

Renova will invest US$398 million in an industrial plant in the town of Timbúes on the Paraná River in Santa Fe province The new facility will be one of the largest crushing plants in Argentina with an installed capacity of 15,000 tons a day, including a power generation plant, improvements to the loading and unloading port, and a wastewater treatment plant .

García said he was pleased to undertake this A/B operation through a syndicate formed by a large number of banks. "It is further evidence of the institution’s catalytic role of attracting funds into the region." The loan is structured with a US$75 million contribution from CAF for tranche A, while tranche B is financed with US$164 million from a syndicate formed by the banks Crédit Agricole, Rabobank, BNP Paribas, Citibank, and Itau Unibanco.

The A/B loans are a co-financing mechanism developed by multilateral organizations to fund development projects, jointly with other international financial institutions. The benefits generated by this type of operation include the catalytic effect through CAF which attracts funds into the region from third parties on very competitive terms and conditions.

Renova is an Argentine joint venture whose shareholders are the local companies Oleaginosa Moreno Hermanos SA, Vicentín SAIC, and Molinos Rio de la Plata SA