The investment arm of the Inter-American Development Bank delivered financing to two subsidiaries of the Latin American Agribusiness Development Corp., a 50-year old organization that lends to small businesses in the agrifood value chain. LAAD has made more than $1.1 billion loans to the region’s small businesses.
Central America, the Caribbean and the Andean region, all underserved by traditional financial institutions, are its biggest lending regions.
In the past two years, LAAD has seen increased demand from banana and coffee producers, in particular. IDB Invest’s loan is being paired with technical assistance to boost LAAD’s lending and portfolio management capacity. The partners are looking for additional investors to match the funding.
More from IDB
The agency launched a billion-dollar fund to spur private investment in Latin America and the Caribbean. With Corporación Financiera de Desarrollo, it also provided $100 million to BBVA Perú to support lending to women-led micro and small businesses in Peru.
And Madrid-based Mundi Ventures secured $5 million from IDB Invest for its Latin America fund, which invests in companies driving financial inclusion, protection and resilience in the region.
