Landmark Financing to Argentina’s Agribusiness Renova is Awarded “Natural Resource Finance Deal of the Year”

The 2017 financing to the Argentine agribusiness company Renova has been awarded “Natural Resources Finance Deal of the Year”, by the prestigious London-based Bonds & Loans publication in its Deals of the Year awards. These awards recognize outstanding achievement from across the Latin American credit markets. 

Led by the International Finance Corporation (IFC) and Rabobank as mandated lead arrangers and joint bookrunners, the $410 million financing package committed to Renova on May 2017, constitutes the largest agribusiness financing mobilized in Argentina.  It was key to fund the expansion of Renova’s crushing facilities and to enhance its port infrastructure, with the aim of improving the logistics and competitiveness of the oilseeds and grains supply in the country. Renova is a joint venture between Vicentin and Oleaginosa Moreno Hermanos. 

The financing consisted of $75 million from the account of IFC, a member of the World Bank Group, $75 million from Rabobank, and $260 million from development finance institutions and commercial banks that joined the initiative in support of the company’s expansion. These were: IIC, FMO, ING, Santander, Natixis, ICBC, ABN, and Itau. It is relevant to note that IFC and IIC acted as lenders of record. 

The unique structure of the deal, its long tenor, and strategic importance for the country’s agribusiness sector make this deal a model of partnership among international development finance institutions and commercial lenders in support of a strategic project. 

“We are delighted to receive this important recognition to Renova and the 2017 financing package” said Sergio Gancberg, Renova’s President. “We acknowledge the key role that IFC and Rabobank played in mobilizing additional funding from other development and commercial banks to support our expansion plans”. 

“With IFC and Rabobank as mandated lead arrangers, Renova executed an excellent multi-tranche syndication, which allowed it to secure funding for capacity expansion at some of the longest tenors seen in Argentina to date,” said Jonathan Brandon, Managing Editor of Bonds & Loans.  “This was a standout transaction that helped carve a path for borrowers in Argentina’s agricultural sector and the wider market”, he noted. 

Bonds and Loans received over 300 deals submitted across 17 categories. The recognition of industry excellence was determined by Bonds & Loans editors based on an exhaustive selection process involving examination of case studies, in-depth feedback and discussions with market participants; followed by an online vote – making it the only awards voted for by the industry. Presentation of the Awards will take place at a cocktail reception, in Mendoza, Argentina on March 22^nd. 

About Bonds & Loans Latin America deals of the year 
Bonds & Loans deals of the year winners 

About IFC 
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org. 

About Renova 
A joint venture between Vicentin S.A.I.C. and Oleaginosa Moreno Hermanos S.A.C.F.I.Y.A.(Glencore), Renova operates an integrated soybean crushing facility and port in Timbues, Santa Fe, and a biodiesel producing facility in San Lorenzo, Santa Fe. Renova’s existing complex in Timbues contains a crushing facility with a processing capacity of 20,000 tons per day; one of the country’s largest ports; a lecithin plant; and storage facilities. 

Its shareholders: 

Vicentin 
Founded in 1929, Vicentin is a family-owned conglomerate, positioned as one of the leading companies in the agro-industry sector of the country. Through its industrial plants in San Lorenzo and Avellaneda, along with its shareholding in Renova, it has become an important player in: 
- The milling and exportation of oilseed and biofuel products and subproducts, alternating between the first and second position according to the year. 
- Production of bioethanol from the processing of maize at its Avellaneda plant in the north of Santa Fe; and its shareholdings in the exportation of other agricultural raw materials. 
It also has commercial offices in Uruguay, Paraguay and Spain 

Glencore/ Oleaginosa Moreno Hermanos S.A 
Multinational company dedicated to trading in grain and oil seeds with important industrial assets and global logistical infrastructure. Has been operating in Argentina since 1984, and through its partnership with Oleaginosa Moreno Hermanos S.A., since 1997.  In addition to its participation in Renova, Oleaginosa Moreno is a leading company in the crushing of oilseeds (soybean and sunflower oil) with its own plants and ports in the Province of Buenos Aires. 
It carries out strong trading activities, based in port terminals and its international commercial network and it also has one of the main networks directly relating to the agricultural producer, through stocking plants and commercial offices.