Cuatrecasas advises on agribusiness financing for Colombia’s leading avocado exporter
Cuatrecasas has represented Bancolombia, Bancovivienda and BBVA Colombia on structuring, negotiating and closing of a historic financing granted to the Cartama Group —Colombia’s main producer, marketer and exporter of Hass avocados—to develop a large-scale agribusiness project, enabling it to strengthen its avocado crops and build a new packaging plant in Colombia.
The transaction is an important step in the country’s agricultural sector, representing the first instance in which a project finance-style structure has been applied to this type of initiative.
According to Cuatrecasas, often companies involved in agricultural activities have generally relied on corporate financing, restricting investment and expansion opportunities for larger projects. This financing agreement paves the way for a more advanced model that prioritizes a project’s long-term viability and expected performance, besides promoting diversification of the export supply.
The Cuatrecasas advisory team was led by lawyers Manuel Quinche (pictured left) and Ana María Sánchez (pictured right) from the Bogotá office. Lawyers that also participated include Natalia Serrano, Juan Esteban Rangel and Daniel Valderrama (Finance); Jaime Vargas, Juan Sebastián Bustillo, José Manuel Jaramillo and Oswaldo Pachecho (Tax); Daniel Albornoz (Labor and Employment); María Fernanda Díaz and Madelin Ramos (Litigation and Arbitration); Natalia Villamizar, Mateo Benjumea and Valeria Pombo (Corporate and M&A); and Santiago Mendoza and Andrea Bocanegra (Infrastructure and Public Law).
