Argentina / Loan Insurance for CAGSA Long-term Financing

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for a long-term loan used by Compañía Argentina de Granos S.A. (CAGSA) for its working capital. CAGSA is Argentina's major producer and distributor of grains including soybeans and corn, which are important grains for Japan in terms of food security.

Last December, XXIII Reunion Plenaria del Comite Mixto Empresario Argentino-Japones (23rd Argentine-Japanese Joint Business Committee) was held for the first time in four years, and the committee expressed a strong demand for NEXI's insurance to cover the country's risk to help Japanese companies enter the Argentine market. This is the first time for NEXI to provide loan insurance for supporting Argentina's agriculture which is the country's major industry.

During the loan period, CAGSA is to export a certain amount of grains to Japan and make its best effort to export to Japan even in emergency situations. In addition, Marubeni Corporation, a Japanese trading company, has signed a memorandum of understanding with CAGSA to purchase 400 thousand tons of grains and oilseeds per year. The deals with CAGSA contribute to Japan's food supply stability and stronger ties between CAGSA and Japanese trading companies.

The "Strategy for Exporting Infrastructure Systems" (revised in 2015 by the Ministerial Meeting on Strategy relating to Infrastructure Export and Economic Cooperation) states that the Japanese government, in collaboration with private sector, will strengthen the purchase of grains such as soybeans and corn in Central and South America. NEXI's support for the CAGSA deals is an example of how this strategy is put into practice.

NEXI will continue to actively support projects contributing to Japan's stable food supply.