Latin American Agribusiness Development Cooperation (LAAD)

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Founded in 1996, Latin American Agribusiness Development Cooperation (LAAD) is a for-profit private investment and development financial institution that assists rural development in Latin America and the Caribbean. Its mission is to promote the economic and social development of the region through financing small and medium-size agribusiness companies in countries which stimulate trade and investments.

The objective of LAAD’s financing activities is to improve the production, distribution and marketing of agricultural-based products and encourage the development of private enterprises in the region. The company has traditionally focused on lending to SMEs engaged in agriculture, livestock, forestry and fishing. LAAD typically provides revolving lines of credit for up to three years, and medium to long-term loans (three to eight years) for the purpose of expanding businesses. Loans fund investments, purchase of fixed assets for agricultural production and processing, permanent working capital and debt refinancing.

BIO’s financing supports LAAD in further growing their agribusiness portfolio in Latin America and the Caribbean. BIO’s loan will also improve the financial fundamentals of the company by allowing it to access long term financing and diversifying funding sources.

The agribusiness financing in the region is scarce, in particular for small and medium sized entrepreneurs and for long term horizons. The financial crisis reduced the funding available to this sector, particularly in light of commodity prices volatility. The producers need the support of institutions like LAAD to improve their operating conditions and to be able to secure a place in their domestic and export markets. LAAD’s organization supports closely the operations of their clients, being able to provide support and in some cases, even provide the link to other producers/exporters to improve overall conditions.

Website: www.laadsa.com

  • Investment amount (€):

    10 million USD

    Registered Offices: Panama Beneficiary countries: Latin America and the Carribean

  • Contract signature :

    2011

    Other EDFIs involved: FMO, Norfund

  • Nature of intervention :

    Loan

  • Development impacts :

    • 1 — Improve availability and accessibility of agribusiness financing
    • 2 — Create employment, especially in rural areas