May 24, 2019 |
Uruguayan dairy co-op asks for $90m through a loan and bond deal
Uruguay's Conaprole has requested a $90m debt package from IDB Invest, including a 10-year loan for $50m and a 12-year bond sale for $40m, according to the multilateral agency.
The financing plans include creating a trust, funded through public debt sales, equity stakes and private placements through IDB Invest. The multilateral lender would buy the bonds, split between a $20m committed tranche and a $20m uncommitted tranche.
The loan, meanwhile, will finance the construction of a powdered milk plant, according to IDB Invest.
The board of IDB Invest is scheduled to review the proposal on July 2.
Created in 1935, Conaprole controls more than 70% of milk sales in Uruguay and its 1,914 members represent 75% of the country's dairy producers. It also gets 60% of its income from exports, accounting for 3% of the global dairy market, according to IDB Invest.