ICBC contributes to $130 million syndicated loan tranche to Renova S.A. for soybean crushing plant in Argentina

On May 26, 2017, a group of 10 banks — including the Inter-American Investment Corporation (IIC), the International Finance Corporation (IFC), Coöperatieve Rabobank U.A. (Rabobank), FMO, ING, Santander, Natixis, Industrial and Commercial Bank of China (ICBC), ABN AMRO, and Itau — signed a $410 million syndicated loan agreement with Renova S.A. (a special purpose vehicle and 50:50 joint venture of Vicentin S.A.I.C. and Oleaginosa Moreno Hermanos S.A.) to finance the expansion of the world’s largest soybean crushing plant, located in Argentina. The loan had two tranches: a $75 million tranche with a 9 year maturity and 2 year grace period (Tranche A) financed by the IDB and the IIC, and a $130 million tranche financed by Rabobank, FMO, ING, Santander, Natixis, ICBC, ABN AMRO, and Itau. The borrowing terms that applied to Tranche B are unknown. The entire loan was secured by (i.e. collateralized against) (i) promissory notes, (ii) mortgage over Renova’s real property in Timbues, Province of Santa Fe, (iii) pledge over Renova’s movable assets, (iv) pledge over Oleaginosa Moreno Hermanos S.A.C.I.F.I. y A.’s movable assets, with Oleaginosa Moreno Hermanos S.A.C.I.F.I.y A. as sponsor and shareholder of Renova, and (v) assignment of Renova’s payment rights arising from tolling agreements, port services agreements and barge terminal services agreements between Renova and its shareholders. The purpose of the $434 million project is to expand the plant’s soybean crushing capacity from 20,000 metric tons (MT) to 30,000 MT per day. It involves an expansion of new grain storage capacity (115,500 MT), a new flat silo (250,000 MT for soybean/grains), construction of a new berth that will expand the port loading capacity (4,000 MT/hour), new unloading capacity of 9,000 MT/day in barge terminal an upgrade of the grain reception area (to facilitate an additional unloading capacity ~500 trucks/day), and new services: (i) cleaning 650 MT/hour, and (ii) drying 200 MT/hour, and a third soybean crushing line (10,000 MT/day). Additionally, Renova is now preparing and implementing a supply chain sustainability policy due to IIC’s involvement. The expansion project is housed within the existing Renova facility footprint, covering 200 hectares in Timbues, San Lorenzo district, Santa Fe Province, Argentina on the right bank of the Coronda river. The area is zoned industrial/agricultural. To the south there are two other crushing facilities and to the north the facility borders a power plant. The current operations consists of the a truck parking lot; truck dumpers, preparation and extraction building (production lines), meal grinding, warehouses, silo and flat storage, water treatment and waste water treatment plant, fuel oil and lecithin tanks, steam and power generation plant, conveyor belts tunnels and port infrastructure (terminal) , canteen, office and administration blocks. The project has reached implementation. While its precise implementation start and end dates are unknown, the date of the first loan disbursement was August 3, 2017. As of January 2017, construction of the second port terminal, barge terminal transport systems, parking areas dumping areas and storage was ongoing.

Additional details

1. The size of ICBC’s contribution to the $130 million syndicated loan tranche is unknown. For the time being, AidData assumes that all 8 members of the syndicate made equal contributions ($16,250,000). 2. The IDB Invest project identification number is 12005-01 3. Renova S.A. is an Argentine producer of biodiesel, glycerin, refined soy oil, as well as soy lecithin, soy flour, and soybean hull pellets. It is a joint venture between Vicentin S.A.I.C. (“Vicentin”) and Oleaginosa Moreno Hermanos S.A.C.I.F.I. Y A. (“OMHSA”), a wholly owned subsidiary of Glencore Agriculture Ltd. (“Glencore Agri”). Vicentin, a family-owned business, was incorporated in 1929 and has been in the soybean crushing business since 1979. It is one of the largest soybean processors in Argentina, owning 3 other facilities and a port terminal in the Great Rosario Area, and two other biofuel plants in northern Santa Fe. OHMSA operates 2 multi-seed crushing plants, 1 vegetable oil refinery, 2 storage facilities and 2 ports, among others. Glencore Agri is owned by Glencore Plc (49.99%), Canada Pension Plan Investment Board (39.99%) and British Columbia Investment Management Corp. (9.99%). 4. Marval, O’Farrell & Mairal acted as the local advisor to International Finance Corporation, Inter-American Investment Corporation and Inter-American Development Bank, in a team led by partner Gabriel Matarasso, and associate Ariana M. Iglesias. 5. Renova S.A. prepared and implemented a supply chain sustainability policy due to IIC’s involvement 6. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this ICBC loan commitment. 7. Some sources list May 20, 2017 as the date the loan was signed. However, May 26, 2017 appears as the date the loan was signed on the IDB Invest and IFC project pages. The IDB Invest and IFC sources have been deferred to in coding the commitment date.

Number of official sources

5

Number of total sources

12