Montreal (Quebec), October 9, 2024 – Canada’s bilateral Development Finance Institution, FinDev Canada, is providing a loan of US$ 40 million to the Latin American Agribusiness Development Corporation (LAAD). This transaction will enable LAAD to expand its loan portfolio to support food production, jobs in rural areas and promote the economic development of countries in the region.
Advancing agriculture is a key strategy to eradicate extreme poverty, enhance shared prosperity, and sustain a global population expected to reach 10 billion by 2050, according to the World Bank Group. Small and medium enterprises (SMEs), the backbone of the food supply chain in these countries, often face challenges with access to the financing they need for their long-term operations. This loan helps to address that challenge by positioning LAAD to expand its lending in the sector and across the region.
“We are proud to be working once again with LAAD, which has been working for decades to reduce poverty by promoting rural sustainable agriculture development,” declares Paulo Martelli, VP and Chief Investment Officer, FinDev Canada. “As our second transaction, FinDev Canada can further build on the relationship established with a longstanding, highly regarded client with significant experience, impact, and reach in the region,” Mr. Martelli adds.
“The contribution of Latin America’s SMEs to food security and diversity worldwide cannot be ignored and unserved. For 54 years, LAAD has believed and will continue believing in its contribution to regional development. SMEs provide innovation in agriculture, driving sustainable practices, new technologies and the modernization of production methods. LAAD, with the support of institutions like FinDev, will continue empowering SMEs in Latin America and the Caribbean,” commented Gustavo Martinez, CEO, LAAD.
This will represent FinDev Canada’s first bilateral transaction with LAAD following a $20M participation in an FMO-led $72M syndicated facility.
The transaction will meaningfully target climate finance activities, such as water efficiency and sustainable agricultural practices. Additionally, it aims to address gender equality gaps as women-owned SMEs in Latin American and the Caribbean, on average, tend to be smaller, less profitable, grow at a slower pace, and face even less access to credit.
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and knowledge, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. FinDev Canada is a wholly owned subsidiary of Export Development Canada (EDC). Find out more about FinDev Canada at www.findevcanada.ca.
About LAAD
Founded in 1969, LAAD is a private financial institution that provides loans to mainly small to medium-sized agricultural enterprises in the agribusiness sector in Latin America and the Caribbean (LAC). By providing long-term finance to these agricultural SME’s, LAAD enables these companies to create impact and to successfully compete with their larger competitors. LAAD has disbursed more than $4 billion dollars in LAC.
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