Fertiservicios Argentinos, S.A.

MIGA issued $6.0 million in coverage to Mitsubishi International Corporation, a wholly owned subsidiary of Mitsubishi Corporation of Japan, for its equity investment and loan guarantee for the construction and operation of fertilizer off-loading facilities in Argentina. The equity is covered against the risks of expropriation and war and civil disturbance. In addition to these risks, the loan guarantee issued to the Bank of Tokyo/Mitsubishi Deutscheland is covered against transfer restriction risk.

The project enterprise will construct, own, and operate the facilities in the towns of San Lorenzo and Quequen on the northeastern coast of Argentina. The project is majority owned by Asociacion de Cooperativas Argentinas (ACA), a private cooperative owned by more than 240 Argentine members.

The project will contribute to the modernization of the agriculture sector in Argentina. Improved handling services and storage facilities will enhance the availability of better-quality agricultural crops at more competitive prices. Local contracting and engineering services will be used to adapt the piers and construct and expand storage facilities. Most of the equipment will be purchased locally on an ongoing basis.

The project will train workers in terminal operations and will train an agronomist in advanced soil and fertilizer analysis. In addition, the project will create a program to educate ACA's members in crop production management.