Greenfield Grain Terminal Project in Argentina Secures $32.5M in Financing
Dutch development bank, FMO, and Crédit Agricole CIB (CACIB) have agreed to provide a combined $32.5 million in funding toward the construction of a $65 million greenfield grain terminal in Quequén, Argentina.
The project is a joint venture between CHS Incorporated, Noble Agri, and the Argentinian grain companies, E-Grain, Alea, A&J Nari, and Lartirigoyen, which is expected to increase export volumes and add efficiency to the supply chain. The terminal will handle soybeans, wheat, soy meal, and barley, and will have a handling capacity of 2 million tons of grain per year.
The project is being funded 50/50 through equity and debt. Under the debt funding side of the deal, FMO has agreed to front a $16.25 million eight-year A-loan, and CACIB has agreed to provide a $16.25 million five-year B-loan. The equity funding will be provided through the partnering companies.
Significant work has been completed toward the finishing of the project, and the terminal is expected to be operating within the first quarter of 2016.