MIGA Signs First Contract of Guarantee with Rabobank Curaçao N.V.: Loan to Support Agribusiness in Argentina
MIGA Signs First Contract of Guarantee with Rabobank Curaçao N.V.: Loan to Support Agribusiness in Argentina
June 23, 1999, Washington, D.C. — MIGA signed a contract of guarantee with Rabobank Curaçao N.V. of the Netherlands for its loan to establish a subsidiary to provide commercial and financial support to the food, agribusiness and healthcare industries in Argentina. MIGA's US$45 million coverage guarantees the investment against the risks of transfer restriction and expropriation. Rabo Trading Argentina S.A. (RTA) will serve the financial needs of local growers, processors and distributors.
The investment will allow RTA to offer financial services such as leasing, factoring, and field warehousing, and commercial services such as purchase and export, to support infrastructure development and transactional cycles of its clients in the agribusiness sector. For example, RTA will act as the intermediary buyer for the oilseed crushing industry, purchasing grains at harvest from producers and delivering them subsequently for crushing. Crushers will benefit from the fixed forward purchase price, RTA's field warehouse financing, and a leasing program for processing equipment. In the dairy, fruit, cotton, leather and wine industries, RTA will offer leasing services, inventory financing, trade-related structures, and discounting of foreign receivables.
Mr. Christiaan Abbenhuis, General Manager and Chairman of the Board of Rabobank Trading Argentina S.A., said: "I am very pleased to get MIGA insurance for this project and I look forward to extending our collaboration with MIGA on other projects in the near future."
Mr. Roger Pruneau, Vice President of MIGA Guarantees, also welcomed this contract agreement with Rabobank: "The project has significant developmentally beneficial features, such as in-house training programs at local offices and international seminars on specific sectors and products for prospective clients. I expect that MIGA will continue to support similar projects in other developing member countries."