LAAD believes the stability and resilience of its business model is based on the diversification of our loan portfolio. Although the company exclusively finances agribusiness projects in Latin America, we have been very successful in maintaining a diverse portfolio, not only in terms of the industries that we finance and the countries in which they are located, but also in terms of the company characteristics (size, shareholder breakdown, vertical integration, etc.). As an example, LAAD considers that despite being involved in the same industry, a large corporation that supplies the bulk coffee markets has significantly different risk characteristics than a family-owned, coffee producer that supplies a specific specialty-coffee market.
LAAD’s portfolio is currently spread out amongst seventeen countries and fourteen industry groups. When one looks in the specific details of each client company within the industry group, it can easily been seen that LAAD’s portfolio is very highly diversified. LAAD’s portfolio distribution by country and group industry is shown in the pie graphs below:
Agribusiness portfolio by industry
Agribusiness portfolio by region