Pioneering project finance scheme will boost competitiveness in Colombia’s agricultural sector
Colombia’s biggest avocado grower-exporter, Grupo Cartama, has secured US$119mn in financing to expand its production and build a new packhouse.
The transaction was carried out by Bancolombia, Banco Davivienda, and BBVA, with Cuatrecasas acting in an advisory capacity. Cuatrecasas described it as a historic milestone in the country’s agricultural sector, being the first financing scheme of its kind for the agricultural sector.
Until now, companies in this sector generally resorted to corporate financing options, which restricted investment and expansion opportunities. This new “project-based” financing structure fosters competitiveness, access to more robust capital, and the emergence of new investment opportunities in Colombian agriculture, Cuatrecasas said.
“This is a pioneering financing in Colombia, carried out under project finance standards, and it opens the possibility for agroindustrial companies in Colombia to optimise their capital structure and increase their competitiveness,” said Ana María Sánchez, partner in the finance and infrastructure department of Cuatrecasas’ Bogotá office.
In 2024, Colombian Hass avocado exports reached US$309.4mn, representing a 54.3 per cent increase compared to 2023.
