Agriculture Distributor

Borrower Overview


TriLinc has provided financing to a grain and oilseed distributor (founded in 1977) which sources its agriculture products from more than 13,500 agricultural producers throughout Argentina. The firm has branches and collection plants with a 1,000,000 metric ton storage capacity. They have made a difference by offering training and technical assistance on sustainable water management, greenhouse cultivation and crop rotation. The company is actively involved in the supply chain, covering everything from implementation and logistics activities to grain marketing; provision of machinery and vehicles, telecommunications and offering insurance and financial solutions. The company has developed a wide transportation network throughout the country, consisting of trucks, railroads, barges and bicycles that allow the company to transport products to its different services centers and collection plants. The borrower actively supports sustainable production initiatives through the protection of soil, air, and water, and the reduction of greenhouse gas emissions and is in compliance with the Roundtable on Responsible Soy, International Sustainability & Carbon Certification, and BioMass Biofuels Sustainability Voluntary Scheme.

Market Overview

In 2014, Argentina was classified as an upper-middle income country by the World Bank.Between 2010 and 2014, annual GDP growth rates averaged approximately 4.4%.Argentina’s main exports have traditionally been soybeans and derivatives, petroleum and gas, vehicles, corn, and wheat. 7 Conversely, imports have been focused in machinery, motor vehicles, petroleum and natural gas, organic chemicals, and plastics.3

Argentina meets TriLinc’s country standards for its performance across relevant growth, and access metrics but not all stability metrics.4 Due to our Investment Partner’s successful historical experience in-country with financing exports, Argentina has been approved on a conditional basis for this Investment Partner, specifically for export financing where the buyer is typically a developed market company or a large conglomerate, and for borrowers with whom our Investment Partner has worked with in the past. As the third largest economy in Latin America, the country benefitted from the $178 billion in net foreign direct investment that was estimated to have flowed into the region in 2014.5 Between 2010 and 2014, annual GDP growth rates for the region have averaged approximately 3.6% and are forecasted to reach approximately 2.8% in 2017.6

Additional Sustainability & Impact Highlights

  • Communication Efficiency and Effectiveness – Using apps on mobile phones, the borrower is able to save time and resources arranging grain pick-up, truck shipments, supply requests and monitor weather and market conditions. Results equal increased reliability for producers and a strong competitive edge for the borrower company.
  • Educating Farmers by contributing to non-profits and sharing knowledge – For every ton of agricultural product delivered to the company for storage, $1.00 is donated to education projects carried out by the Argentine Association of Regional Consortiums for Agricultural Experimentation (AACREA). This is a non-profit of farmers using their knowledge, experience and resources to foster the improvement of technical and managerial efficiency.
  • Promoting sustainable agricultural activities – The company donates $0.20 for every ton of grain it stores, and $0.20 for every $700 of supplies it sells to AAPRESID, the Argentina Association of No Till Producers’ certified agricultural projects. This non-profit promotes sustainable agricultural activities through technological, organizational, and institutional innovation, and the support of public private partnership.

1The World Bank, Data – New Country Classifications, 2015. 2The World Bank, World Development Indicators Database, 2015. 3CIA, The World Factbook, 2015: Argentina. 4There is no assurance that TriLinc’s investment in this company or this market will be successful. 5The World Bank, World Development Indicators Database, 2015. 6The World Bank, Global Economic Prospects, 2015.

The above information is as of the initial date of investment: March 28, 2014.

An investment with TriLinc carries significant fees and charges that will have an impact on investment returns. Information regarding the terms of the investment is available by contacting TriLinc. This is a speculative security and, as such, involves a high degree of risk. Investments are not bank guaranteed, not FDIC insured and may lose value or total value. Some investments may have been made in an investment vehicle that is no longer open for investment. The highlighted investment may or may not have been profitable. There is no guarantee that future investments will be similar.

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