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| Timbues Soybean Crushing Plant |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26959 |
| Company name | Noble Argentina S.A. |
| Country | Argentina |
| Sector | Food & Beverages |
| Environmental category | B |
| Department | Agribusiness |
| Status | Active |
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| Date SPI disclosed | December 23, 2008 |
| Projected board date | January 23, 2009 |
| Previous Events | Signed: June 30, 2009
Approved: June 25, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
IFC is considering providing Noble Argentina SA (“Noble Argentina” or “the company”) financing of up to $40 million in the form of an A loan (the “Loan”) to support the company’s $230 million construction and operation of a soybean crushing facility (the “Plant”) in its port terminal in Timbues, Santa Fe Province, Argentina. The balance of the funding will be in the form of a $75 million A loan from InterAmerican Development Bank (IDB), $45 million syndicated loan by IDB, and $70 million in equity and subordinated shareholder loans.
The plant includes:
- an 8,500 metric ton (mt) per day soybean crushing facility,
- a soybean dehulling facility,
- a steam and 17MW electrical energy cogeneration unit,
- meal storage capacity of 110,000 mt,
- oil tanks with 45,000 mt capacity,
- storage facility for 300,000 mt soybean, and
- handling facilities.
The project expands the capabilities of the company’s existing grain river port terminal beyond origination, port services and exporting of grain, to include crushing and exporting product.
Noble Argentina is a commodity trader based in Argentina that offers a range of agricultural commodity products, as well as logistics and technical services. The company has been operating for slightly more than 5 years, and within that period has grown to become the 10th ranked exporter of soybean, corn and wheat from Argentina.
Noble Argentina was established in 2001 following Noble Group Limited’s purchase of Andre & Cie’s Asia assets and subsequent expansion into producing countries such as Argentina. Noble Group Limited (“Noble Group” or “the Group”) remains the 100% indirect owner of Noble Argentina. |
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| Project sponsor and major shareholders of project company |
| The key project sponsor and Noble Argentina’s ultimate shareholder is Noble Group Limited (“Noble Group” or “the Group”). Noble Group, listed on the Singapore Stock Exchange and headquartered in Hong Kong, is one of the world’s largest commodity trading groups and a market leader in managing the global supply chain of agricultural, industrial and energy products. |
| Total project cost and amount and nature of IFC's investment |
| Project cost for the construction of the crushing plant is estimated at $230 million. IFC has been requested to consider providing a $40 million A loan to partially finance the crushing plant expansion. The balance of the funding will be in the form of a $75 million A loan from InterAmerican Development Bank (IDB), $45 million syndicated loan by IDB, and $70 million in equity and subordinated shareholder loans. |
| Location of project and description of site |
| The project is to be located in land already owned by Noble Argentina, directly adjacent to the company’s existing grain river port terminal located on the lower Parana River in Santa Fe province, about 35km north of Rosario or 340 km from Buenos Aires. |
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| Anticipated development impact of the project |
| The project is expected to provide identifiable positive impact to the company and to several local communities. For the company, this project provides opportunity for further growth and diversification from trading and export of beans to crushing and production of product. For the local communities, expected benefits include the creation of employment and the increased demand for goods and services linked to the storage and processing activities, as well as linkages with local farmers and intermediaries in rural areas who provide raw materials to the company. There are also benefits in the form of various taxes (income tax, export taxes, etc.) paid to the government. However, in view of the export tax differential between oil/meal (32%) and soybean (35%), the project is also expected to result in some forgone export taxes for the government. |
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| IFC's expected development contribution |
| Through this investment, IFC is extending its partnership with an existing client (Noble Argentina), and existing partner (Noble Group), supporting the Group’s growth and continued diversification in emerging markets (South-South investment). IFC is likewise provided the opportunity to continue supporting the company’s expansion and upgrade of environmental and social systems and practices, especially as the Company’s growth in operations and resulting impact extends beyond the Rosario and surrounding areas, into other regions including frontier regions such as Salta, Chaco and Santiago del Estero. |
| Environmental and social issues - Category B |
| This is a category B project according to IFC’s procedure for Environmental and Social Review of projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. IFC professional staff performed a physical evaluation of the project and environs, and reviewed relevant company and government documentation. |
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| For inquiries about the project, contact: |
Mr. PABLO FREIRE
Noble Argentina S.A.
Carlos Pellegrini, 1163 – 9/Piso
C1009 ABW, Buenos Aires, Argentina
Tel Number : +54 11 4131 7100
Fax Number: +54 11 4131 7120
Email : pfreire@noblegrain.com
Website : www.noblegrain.com.ar |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
The project’s environmental documents will be accessible at the following locations:
- Noble Argentina Website (www.noblegrain.com.ar)
- Noble Argentina’s Corporate Office in Buenos Aires:
- Carlos Pellegrini, 1163 – 9/Piso, C1009 ABW, Buenos Aires, Argentina
- Tel Number : +54 11 4131 7100
- Fax Number: +54 11 4131 7120
- Noble Argentina’s Office in Rosario:
- Paraguay 727 - 6° - "4", Rosario, Santa Fe, Argentina
- Tel Number: +54 341 568 0333
- Public Library in Timbues:
- Mitre 540, Timbres, Santa Fe, Argentina |
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