Cartama obtains historic funding to develop large-scale agro-industrial project

Cuatrecasas has advised Bancolombia, Banco Davivienda, 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 a historic milestone in the country’s agricultural sector, as it is the first time a project finance-type financing scheme has been introduced for this category of projects. To date, companies involved in agricultural activities have generally relied on corporate financing, restricting investment and expansion opportunities for larger projects. This financing agreement opens the door to a new and sophisticated model that places emphasis on the project’s viability and future performance.

The new financing structure promotes competitiveness, access to more robust capital, and the emergence of investment opportunities in Colombian agriculture. It also serves as a benchmark for designing and implementing future agricultural projects, and contributes to boosting production and exportation of strategic projects, promoting sustainable growth and diversification of the export supply.

Ana María Sánchez, Finance and Infrastructure partner of the Cuatrecasas Bogotá office, said: “This is a groundbreaking financing transaction in Colombia, carried out under project finance standards, making it possible for agribusiness companies in Colombia to optimize their capital structure and increase their competitiveness.”

In 2024, Hass avocado exports from Colombia reached USD 309.4 million, an increase of 54.3% compared to 2023. The Cartama Group has shipped over 5,000 containers to different destinations around the world since its first exportation.

The Cuatrecasas advisory team was led by lawyers Manuel Quinche and Ana María Sánchez 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).