Trade Finance Deal of the Year - Vicentin
January 17, 2018 |
A deal involving one of Argentina’s largest agricultural exporters highlights improving conditions for trade financing in South America’s third-largest economy
For exporters in Argentina, finding export financing hasn’t traditionally been easy.
Although investor sentiment towards Argentina has improved, the country’s turbulent economic history has posed a challenge for companies seeking medium- and long-term financing for exports.
In March, Argentine agribusiness Vicentin secured a $115 million five-year pre-export financing, a longer tenor compared to previous transactions in Argentina. The ING-led syndicate included lending from commercial banks. Previously, multilaterals provided most of the support.
The facility included loan insurance during the five-year period provided by Japan’s export credit agency, Nippon Export and Investment Insurance (NEXI). As part of the transaction, Vicentin signed an agreement with Japanese trading company Mitsui commiting to export 40,000 tons of grain and oilseed per year to Japan for five years.
That component, plus the deal’s reflection of growing commercial interest in these types of transactions in Argentina, make the deal the winner of the award for Trade Financing of the Year.
ING was the sole coordinator of the facility while MUFG and SMBC were lead arrangers. LF