In December 2015, OeEB extended a USD 15 million long-term credit line to the Latin American Agribusiness Development Corporation (LAAD). In December 2018, another credit line of USD 20 million was signed. The funds are used to finance small and medium-sized agricultural businesses in Central America and the Caribbean.
|Project name||Latin American Agribusiness Development Corporation (LAAD)|
|Region||Central America and the Caribbean|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 35 million|
|Projekt partner(s)||Latin American Agribusiness Development Corporation (LAAD)|
The world's population is growing rapidly. In order to meet increased food demand, food production will have to be increased by up to 70% by 2050. Investments that increase productivity are urgently needed. But especially in developing countries, there is often a shortage of necessary financing.
Financing for agricultural SMEs
The two credit lines provided by OeEB improve access to finance for small and medium-sized agricultural enterprises in Central America and the Caribbean. This will enable necessary investments to support the modernization of the agricultural sector. Moreover, improved access to finance will support businesses in preserving and creating jobs, especially in rural areas where poverty is most prevalent.
High environmental and social standards
Businesses using genetically manipulated seeds are excluded from financing with OeEB funds. In addition, the funds provided by OeEB are dedicated exclusively to agricultural SMEs which already have an international certification or are aiming to be certified. This will ensure high environmental and social standards that contribute to sustainable agriculture and improved working conditions. With funds from its Business Advisory Services, OeEB supports LAAD's customers in improving their environmental and social standards to achieve international certifications.
Already in September 2012, OeEB provided LAAD with an initial USD 15 million credit line. A mid-term evaluation carried out in 2014 confirmed that OeEB has found a very good partner with LAAD, which, thanks to its many years of experience and local presence as well as comprehensive agricultural finance know-how, can best secure the allocation of OeEB's funds to agricultural SMEs.