Argentina / Loan Insurance for ACA Long-term Financing

July 25,2016

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for a long-term loan used by Asociacion de Cooperativas Argentinas C.L. (ACA) for its working capital.

After the change in administration last December, Argentina is in progress on a market-friendly administration, as typified by the resolve of the Holdout problem. In May, Japan-Argentina Joint Economic Forum was held for discussions about further economic relations between the two countries. In the light of circumstances, NEXI will provide loan insurance for supporting Argentina’s agriculture which is the country’s major industry.

ACA is Argentina’s largest agricultural cooperative and a major producer and distributor of grains including soybeans and corn, which are important grains for Japan in terms of food security. Also ACA has a relationship for more than 50 years with National Federation of Agricultural Co-operative Associations (Zen-Noh) in Japan.

During the loan period, ACA is to export a certain amount of grains to Japan and make its best effort to export to Japan in emergency situations. The deals with ACA is expected to contribute to Japan’s food supply stability, deepen the relation between ACA and Zen-Noh, and build stronger ties between Argentina and Japan.

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 ACA deal 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.

Insured (Lender) ING Bank N.V., Tokyo Branch, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Insurable value USD 100 million
Tenor 8 years