denotes premium content | Jan 6 2009 
Feature
posted 23 Feb 2005 in Volume 8 Issue 4
Nidera, Argentina: Opening the doors in Argentina
MLA: ABN Amro, FMO, Fortis Bank
Borrower: Nidera, Argentina
Deal size – debt and equity: $150m
Tenor: seven years
Closing: August 2004
Argentina is still viewed as a high-risk country and the $150m Nidera finance facility not only represents a groundbreaking deal in terms of the structure, size and tenor, but as Prabhat Vira, ABN Amro’s head of global commodity finance, points out, it also “opens the doors to long-term structured commodity trade transactions in Argentina”.
ABN Amro acted as global co-ordinator and bookrunner in the transaction, whilst FMO acted as the lender of record (co-financing with a pre-export secured nature) and facility administrator. Other participants include Standard Chartered Bank, Rabobank and KBC.
The $150m deal was successfully syndicated with an A/B loan structure that was tailor-made to support Nidera’s capital expenditure plans and to finance working-capital needs. The highly structured nature of the facility helped to extend the tenor to up to seven years, including a three-year B loan tranche and a seven-year A loan tranche.
While the structure was put in place to reduce the country/political risks and expand market appetite, FMO’s involvement as a lender of record substantially mitigated the country risk on Argentina due to the special status that the Dutch development institution enjoys in the country.
“This transaction is an example of how the banks involved benefited from their strengths and expertise. Through their long-lasting relationships and worldwide knowledge of the Nidera group of companies, Fortis and ABN Amro were able to structure this pre-export financing in a short period of time, supported by FMO, which used its core capability to provide tax-efficient long-term financing export of soybeans (products) from Argentina,” says Diane Boogaard, managing director and global head of Fortis commodity group.
Nidera, part of Nidera Holdings, is one of the largest producers and traders of grains and other soft commodities in Argentina.
