The Inter-American Development Bank (IDB), a US-based multilateral finance institution serving Latin America and the Caribbean, will be providing a partial credit guarantee of up to USD 5 million to Agrofinanzas, a Mexican microfinance institution focused on supply chain financing, to support small Mexican sunflower producers. The guarantee program is part of a supply chain project in which Agrofinanzas will provide loans to the farmers in the program and the IDB will provide a partial credit guarantee to mitigate Agrofinanzas’ credit risk exposure, allowing it to expand its reach.
The project is supported by Pepsico, a US-based global food and beverage company, whose Mexican business unit Sabritas will provide technical assistance to the farmers in the program and commit to purchasing the sunflower oil produced. It is expected that 850 farmers will benefit.
No financial information is available for Agrofinanzas.
By Jennifer Shevock, Research Associate
About the Inter-American Development Bank:
The Inter-American Development Bank (IDB) is a US-based multilateral finance institution established in 1959 that operates in Latin America and the Caribbean. IDB works with governments, companies and non-governmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health and education, among other sectors. It also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are in Latin America and the Caribbean. IDB reported total assets of USD 84 billion as of December 31, 2009.
Sources and Additional Resources:
“IDB guarantees 2,000 microloans of Mexico’s Agrofinanzas” August 17, 2010. http://www.microfinancefocus.com/news/2010/08/17/idb-guarantees-2000-microloans-of-mexico%E2%80%99s-agrofinanzas/
MicroCapital Universe: Inter-American Development Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29
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