Argentina Republic/Loan Insurance for Vicentin S.A.I.C. Long-term Financing

March 30, 2017

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for a long-term loan used by Vicentin S.A.I.C. (Vicentin), an Argentine Republic (Argentina) major oilseed crushing company, for its working capital.

Since the establishment of a new administration in December 2015, Argentina has been making progress under a rapid economic reform, which can be typified by the resolution of the Holdout problem that brought the country back into the international financial market. In November 2016, Mr. Abe paid an official visit to Argentina as Prime Minister of Japan for the first time in 57 years, and issued the “Japan-Argentina Joint Statement” together with President Macri. The statement encompasses broad visions aimed for further strengthening the cooperative relationship between the two countries, under the context of both bilateral and international fields. Also at the occasion, with expectations to bring stronger economic ties between the two countries, the “Japan-Argentina Joint Economic Forum” was held with more than 480 participants from Japanese and Argentine governments, Japanese companies investing in Argentina, Argentine companies and others.

At the “Japan-Argentina Joint Economic Forum”, 3 MOUs pertaining to business between Japan and Argentina were signed, symbolizing the strengthening economic ties between the countries. One of the MOUs signed was between Mitsui & Co., Ltd. and Vicentin S.A.I.C., which aim to import 400,000 tons of oilseeds and soymeal from Argentina to Japan and other destinations on an annual basis. NEXI’s insurance for the long-term loan used by Vicentin is expected to facilitate this transaction.

Vicentin S.A.I.C., established in 1929, is a major independent oilseed processor in Argentina. It crushes oilseeds such as soybeans, which is an important grain to Japan for the promotion of its food security, and exports soybean meal diet for animals and soybean cooking oil. Argentina is the largest exporter of soybean meal diet and oil in the world, and Vicentin has the largest installed crushing capacity with top export share (in 2016, 1st in oil and 2nd in meal diet) in the country exceeding major multinational grain companies, which makes the company one of the world largest exporters of soybean meals and other related products.

The “Infrastructure Systems Export Strategy” (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 sectors, will strengthen the procurement of grains such as soybeans and corn from Central and South America. NEXI’s support for Vicentin sets an example on how this strategy will be put into practice. The loan is made on condition that Vicentin shall export a certain amount of grains to Japan during the loan period, as well as to make its best effort to supply export to Japan under emergency situations. The loan will contribute to the stability of Japan’s food supply.

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

Insured ING Bank N.V., Tokyo Branch,
The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
Sumitomo Mitsui Banking Corporation
Insured Value USD 115 million
Tenor 5 years
Covered risks Political Risk 100%, Commercial Risk 90%