San Miguel Extends Its Debt Maturity Profile to Eight Years with an US$81 Million Loan from IDB Invest
09 July 2026
The company will pay an interest rate of approximately 9.8% per year through 2034, with a two-year grace period. As a result, it has now refinanced 80% of its debt maturities, following a strategy that had already included the refinancing of US$110 million in corporate bonds.
Citrus producer San Miguel, the world’s leading exporter in the industry, announced US$81 million in financing from IDB Invest and the International Finance Corporation (IFC), enabling it to cover 80% of its debt with maturities extending up to eight years.
According to a filing submitted to Argentina’s National Securities Commission (CNV), the holding company and its subsidiaries, which operate facilities in Tucumán, Uruguay, and South Africa, will “significantly reduce the Company’s refinancing needs over the coming years.”
In a statement, the company explained that the two loans comprising the “AB Loan”—one for US$71 million and the other for US$10 million—“concentrate the principal repayments starting in 2028, with a gradual amortization schedule aligned with the expected growth of the business through 2034.”
The average life of the loan is approximately six years, as it includes a two-year grace period. The agreed floating interest rate is SOFR + 6%, equivalent to approximately 9.8% nominal annual interest.
San Miguel stated that the financing is intended to: 1 Restructure its current long-term financing by extending debt maturities and modifying applicable interest rates, among other aspects, particularly regarding the existing IFC loan. 2 Repay the loans granted to the Company by IDB Invest (Inter-American Development Bank) in 2018. 3 Obtain new financing from IFC (the World Bank Group’s private sector institution) and IDB Invest.
According to San Miguel, the proceeds from the transaction will be used to: 1 Prepay the loans granted by IDB Invest in 2018. 2 Repay other existing financial obligations of the Company. 3 Fund the final stage of the borrowers’ capital investment plan as part of the Company’s strategic transformation program.
Over the past two years, San Miguel has focused on restructuring its debt maturities. A key milestone came last January, when it completed a US$110 million bond exchange with a 90% participation rate among bondholders. According to the company, this new AB Loan “complements that transaction as the second step in the refinancing strategy.”
The transaction was carried out by S.A. San Miguel together with its subsidiaries S.A. San Miguel Uruguay, Samifruit Uruguay S.A., and San Miguel International Investments S.A. In addition to IDB Invest and IFC (the A Lenders), Coöperatieve Rabobank U.A. (Rabobank) also participated as the B Lender.
