Project to generate over 10,000 jobs and promote sustainable farming practices
The Inter-American Development Bank today announced the approval of a $32 million loan to Chile’s Grupo Subsole, one of the largest locally owned fresh fruit companies and the country’s third largest table grape exporter.
The loan will help Subsole improve its capital structure and expand its production and export capacity. It will also help Subsole continue benefitting its network of 275 small and medium-scale fruit growers. In addition, the loan will support the creation of more than 10,000 direct and indirect jobs throughout the supply chain over the next five years, helping to improve the living standards of more than 25,000 people.
Subsole has grown between 20 percent and 30 percent annually since 2002. The IDB loan will support the company’s continued growth through basic investments and the expansion of an inclusive business model that will have a significant impact throughout the fruit sector.
The loan will also promote the use of solar energy through the development of a photovoltaic plant in the Atacama region, the first of its kind for the fruit sector. Subsole also plans to make investments in energy efficiency for irrigation and water storage. Additional investments will help the company achieve significant growth by strengthening business relationships with producers as well as its ability to promote sustainable farming practices.
The IDB's participation will contribute to Chile’s efforts to increase employment opportunities in rural areas, to promote sustainable agriculture by financing the supply chain, to finance renewable energy through environmentally friendly investments that emphasize solar technology, and to increase and diversify its agro-industrial exports.
The loan is for a 10-year term with a 30-month grace period.
Grupo Subsole’s companies are active throughout the fruit supply chain, from growing to packing to exporting grapes, avocadoes, kiwi fruit, pomegranates, citrus and cherries. The group's principal companies are Exportadora Subsole S.A., Servicios Agroindustriales Subsole S.A., Agrícola Los Terrones S.A., Sociedad Subsole Comercial S.A. and Subsole Logistics S.A.