NASE Negocio Agrícola San Enrique, SA de C.V (“NASE”), located in the Northwest of Mexico, is a company with 25 years of experience in the horticultural sector, engaged in the production of organic and non-organic tomatoes, peppers, table grapes, nuts (pecan), strawberries, blackberries, and farmed shrimp, with a focus on the export market (90% of sales).NASE was born 50 years ago out of the Mazón family's agricultural business, which focused on the production of oranges, nuts, wheat, and chickpeas. Today, agricultural and aquacultural production is mainly located in the States of Sonora (near Hermosillo), Southern Baja California (near Melitón and Vizcaíno), Nayarit (shrimp farms), and on a smaller scale, in Culiacán, where mostly feed grain is still produced.NASE has driven its geographic diversification and constant operational growth through the purchase of new properties and water permits, thus achieving a greater market share and greater operating profit. NASE initially relied on 650 hectares for production, and now manages more than 4,962 hectares on 6,500 hectares of owned land. It is one of the leading Mexican groups in the production of tomatoes, peppers, and walnuts, a very fragmented sector. Tomatoes and peppers are produced using medium technology shade mesh. This type of production is carried out in regions where the climate allows it and highly technified greenhouses (glass) are not needed.NASE sells all its produce fresh. Vegetables are packaged on-site and sent to the American market. Walnuts undergo additional processing after the harvest and are then sent unhusked, mainly to the Asian market. As for the shrimp, it is sold in frozen portions in the Mexican and export markets.One of NASE's competitive advantages is its ability to produce throughout the year, especially during the winter season, since in general, during this period, open field vegetable production is only possible in Sinaloa, Mexico (mainly tomato), and in Florida, USA. This situation makes it possible for NASE to access the market when prices are higher in the US and Mexico.The proposed financing consists of a Committed Revolving Line without guarantee for US$ 15 million for a term of three years, with annual amortizations (“clean-ups”). The aim of this transaction is to substitute the credit lines from fertilizer and agricultural input suppliers, thereby extending the current term of only 180 days, which does not match the production cycles (between 180 days and more than 300 days for walnuts), to 360 days[1]. The financing will be used as working capital, mainly for the purchase of raw materials such as seeds, fertilizers, and for various agricultural works, as well as for purchasing inputs and financing works in the production of farmed shrimp (hereinafter “the Project”).The Project is consistent with IDB's regional strategy for Mexico, which focuses on stimulating the productivity of companies, potentiating the development of the economy and rural communities, and promoting sustainable business models by identifying competitive players in the region.[1] Today, the company relies on long-term bank financing with a working capital component, which has to be liquidated within 180 days. However, the company needs longer terms than the current scheme allows. Negocio Agrícola San Enrique, SA de C.V (“NASE”), located in the Northwest of Mexico, is a company with 25 years of experience in the horticultural sector, engaged in the production of organic and non-organic tomatoes, peppers, table grapes, nuts (pecan), strawberries, blackberries, and farmed shrimp, with a focus on the export market (90% of sales).NASE was born 50 years ago out of the Mazón family's agricultural business, which focused on the production of oranges, nuts, wheat, and chickpeas. Today, agricultural and aquacultural production is mainly located in the States of Sonora (near Hermosillo), Southern Baja California (near Melitón and Vizcaíno), Nayarit (shrimp farms), and on a smaller scale, in Culiacán, where mostly feed grain is still produced.NASE has driven its geographic diversification and constant operational growth through the purchase of new properties and water permits, thus achieving a greater market share and greater operating profit. NASE initially relied on 650 hectares for production, and now manages more than 4,962 hectares on 6,500 hectares of owned land. It is one of the leading Mexican groups in the production of tomatoes, peppers, and walnuts, a very fragmented sector. Tomatoes and peppers are produced using medium technology shade mesh. This type of production is carried out in regions where the climate allows it and highly technified greenhouses (glass) are not needed.NASE sells all its produce fresh. Vegetables are packaged on-site and sent to the American market. Walnuts undergo additional processing after the harvest and are then sent unhusked, mainly to the Asian market. As for the shrimp, it is sold in frozen portions in the Mexican and export markets.One of NASE's competitive advantages is its ability to produce throughout the year, especially during the winter season, since in general, during this period, open field vegetable production is only possible in Sinaloa, Mexico (mainly tomato), and in Florida, USA. This situation makes it possible for NASE to access the market when prices are higher in the US and Mexico.The proposed financing consists of a Committed Revolving Line without guarantee for US$ 15 million for a term of three years, with annual amortizations (“clean-ups”). The aim of this transaction is to substitute the credit lines from fertilizer and agricultural input suppliers, thereby extending the current term of only 180 days, which does not match the production cycles (between 180 days and more than 300 days for walnuts), to 360 days[1]. The financing will be used as working capital, mainly for the purchase of raw materials such as seeds, fertilizers, and for various agricultural works, as well as for purchasing inputs and financing works in the production of farmed shrimp (hereinafter “the Project”).The Project is consistent with IDB's regional strategy for Mexico, which focuses on stimulating the productivity of companies, potentiating the development of the economy and rural communities, and promoting sustainable business models by identifying competitive players in the region.[1] Today, the company relies on long-term bank financing with a working capital component, which has to be liquidated within 180 days. However, the company needs longer terms than the current scheme allows.