Holland & Knight represents Peru’s Agrícola Pampa Baja in $75m loan
Holland & Knight represented Peruvian family-run agricultural producer Agrícola Pampa Baja (APB) on two loans totaling $75 million to be used for investment in expansion.
The loans are a $25 million facility with a 10-year tenure provided by the Inter-American Investment Corporation (IIC), and a $50 million 10-year facility with Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden and Deutsche Investitions-Und Entwicklungsgesellschaft MBH as lenders.
APB is a producer and marketer of avocados, grapes, mandarins and pomegranates, as well as paprika, sweet yellow onions and milk. The company’s main operations are located in Majes-Siguas, near Arequipa, and consist of 3,100 acres of fruits and horticultural crops, in addition to a dairy operation with 6,250 head of cattle. A second, 2,700-acre farm is located in the H2Olmos irrigation project in northern Peru.
The funds from the two financings will be allocated to capital investments for both the Olmos and Majes operations for the planting of 1,400 additional acres of avocado, 247 additional acres of mandarins and 247 acres of new grape varieties, including the construction of industrial packing facilities, state-of-the-art irrigation systems, permanent working capital and the refinancing of short- and medium-term debt.
Holland & Knight partners Norberto Quintana and Steve Double and associate Laura Güemes led the firm’s work on the deal, assisted by international law clerk Susana Raventós.
De Bracamonte Haaker Castellares acted as local counsel to APB in Peru.
