An agribusiness company in Argentina has been granted a loan totalling $100 million (£78m) to implement efficiency and climate-related approaches in its business.
The loan has been approved by IFC, a member of the World Bank Group, for Adecoagro’s investment programme, which includes the acquisition and efficiency improvements of two dairy processing facilities.
The dairy industry is an important component of the agribusiness sector in Argentina, which is a key economic driver for the country, accounting for 63% of its total exports.
The financing will also support the establishment of an anaerobic biodigester to produce renewable energy from animal waste that will be sold to the grid.
The projects are expected to help reduce greenhouse gas emissions as well as energy and water usage.
Alejandro López Moriena, Adecoagro’s Chief Sustainability Officer said: “The IFC Green Loan confirms Adecoagro’s commitment to sustainable agribusiness production under world-class standards and will allow it to expand its production sustainably at a time of global uncertainty.
“The programme will also support rural livelihoods by preserving and creating quality jobs at a crucial time.”