MIRA INFORM REPORT

 

 

Report Date :

05.04.2014

 

IDENTIFICATION DETAILS

 

Name :

BUNGE AGRITRADE S.A.

 

 

Registered Office :

Luis Bonavita 1294 Piso 23 Word Trade Center Resource Montevideo

 

 

Country :

Uruguay

 

 

Year of Establishments:

2004

 

 

Legal Form :

Joint-Stock Company

 

 

Line of Business :

Subject is engaged in import and trading of agricultural products, such as bean, soybean flour, corn.

 

 

No. of Employees :

22

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Poor

 

 

Payment Behaviour :

Slow

 

 

Litigation :

--

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Uruguay

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

URUGUAY - ECONOMIC OVERVIEW

 

Uruguay has a free market economy characterized by an export-oriented agricultural sector, a well-educated work force, and high levels of social spending. Following financial difficulties in the late 1990s and early 2000s, economic growth for Uruguay averaged 8% annually during the period 2004-08. The 2008-09 global financial crisis put a brake on Uruguay''s vigorous growth, which decelerated to 2.6% in 2009. Nevertheless, the country managed to avoid a recession and keep positive growth rates, mainly through higher public expenditure and investment, and GDP growth reached 8.9% in 2010 but fell to about 3.5% in 2012, the result of a renewed slowdown in the global economy and in Uruguay''s main trade partners and Common Market of the South (Mercosur) counterparts, Argentina and Brazil. Uruguay has sought to expand trade within Mercosur and with non-Mercosur members. Uruguay''s total merchandise trade with Mercosur since 2006 has increased by nearly 70% to more than $5 billion while its total trade with the world has almost doubled to roughly $20 billion.

 

Source : CIA

 


IDENTIFICATION

 

CORRECT COMPANY NAME

BUNGE AGRITRADE S.A.

TAXPAYER REGISTRATION

RUT 215051740010

MAIN ADDRESS

Luis Bonavita 1294 Piso 23 Word Trade Center Resource.

DEPT/PROV/REGION/STATE

Montevideo

COUNTRY

URUGUAY

TELEPHONE

(5982) 6262800

CORPORATE E-MAIL

pablo.gallandat@bunge.com

WEB

www.bungeuruguay.com

 

 

EXECUTIVE SUMMARY

 

Date of foundation

2004

Capital stock

Not specified

permanent employees

22

Chief Executive

RAYMUNDI, MARIO

Disposition

Poor. Very few information was given. Politely.

Payments policy

Delays but within sector norms

Number of times that this company was required: 5

 

 

LEGAL STRUCTURE

 

LEGAL STATUS

Joint-Stock Company

 

 

DATE OF INCORPORATION

2004

PLACE OF REGISTRY

Montevideo

 

 

CURRENT PAID-IN CAPITAL

Not specified

CURRENT EXCHANGE RATE (US$)

Ps$18.51 Pesos per US$1.= Dollar

 

 

COMMENTS

 

It was not obtained any information on subject's shareholding structure. It is only known that subject would be mainly controlled by the Argentinian company Bunge Argentina S.A.

 

 

DIRECTORS - EXECUTIVES – SHAREHOLDERS

 

FULL NAMES / COMPANY NAME

TITLE

%PART.

SINCE

RAYMUNDI, MARIO

General Manager

GALLANDAT, PABLO

General Accountant

BUNGE ARGENTINA S.A.

Shareholder / Member

Yes

 

 


WHO IS WHO?

 

RAYMUNDI, MARIO

TITLE

General Manager

NATIONALITY

Argentinian

 

ASSOCIATED AS PER OUR DATABASE TO

COMPANY

TITLE

TAX REG

COUNTRY

AGROBOLIVIA LTDA

Legal Representative

BOLIVIA

 

 

BUNGE ARGENTINA S.A.

 

BUSINESS BACKGROUND

Bunge Argentina is one of the main agribusiness companies in Argentina. Its activity consists of the entire chain, from distribution of fertilizers, reception and storage of grains, industrialization of oil products, production of flour with various protein contents and vegetable oils, both raw and for human consumption, and trading of grains (cereals, oil products and byproducts) mainly aimed at the external market.

 

In its daily bet for growth and as committed to the national interest, Bunge Argentina gives job to about 1,000 persons and creates indirect jobs for another 10,000 persons.

 

Bunge Limited - a company listed in the New York Stock Exchange - based in White Plains, New York, operates in North America, South America, Europe, Asia, and Oceania, and it has commercial, logistic and distribution capacities throughout the entire world.

 

 

At a world level, Bunge Limited is present throughout the entire agri-food production chain, which particularly allows it to satisfy, in a simultaneous and integrated manner, both the needs of farmers, industry and related logistic services, and the needs of its customers in the global busines market.

 

In Argentina, with a processing capacity of over 25,000 tons a day, Bunge Argentina is the first national soybean processor. It is the second exporter in the agribusiness market and the third exporter in general. It is the first exporter of oil byproducts (flour and oils) and wheat grains, the second of corn, and the leader in soybean seeds.

 

The 95% of production of Bunge Argentina is aimed at exportation, which is carried out by Bunge Global Markets, the international marketing division operating in over 30 countries.

 

 

BUSINESS HISTORY

 

Subject is part of the Bunge & Born Group, which is a multinational business corporation established in Argentina that during the 20th century was considered as the most powerful and influential corporation in the country. The Bunge & Born Group from Argentina had its axis in the company Alimentos Molinos Rio de La Plata and is part of the Holding Bunge International Ltd., based in Bermuda, one of the world's largest corporations in trading of commodities, and particularly soybean.

 

Bunge & Born was incorporated in 1884 to be engaged in export of cereals. In 1902, the group decided to industrialize wheat that then was its main product for exportation.

 

 

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

 

COMPANY NAME

COUNTRY

TAX REG.

RELATION %

BUNGE ALIMENTOS SA

BRAZIL

(AC) 84046101/000193

Related

BUNGE INTERNATIONAL LTD

BERMUDA

Related

BUNGE URUGUAY S.A.

URUGUAY

Related

 

 

BUSINESS

 

SIC Classification
5 1 - WHOLESALE TRADE-NON-DURABLE GOODS. (Papers, Perfumes, drugs, hardware, Groceries, apparel, food, dairy products, beverages.)

Main activity

Subject is engaged in import and trading of agricultural products, such as bean, soybean flour, corn.

 

It is also engaged in import and trading of corn and soybean oil.

OPERATIONS

Import

Yes

Country

Argentina, USA

Export

No

% CASH SALES / METHOD

Yes

% Credit SALES / Terms

Yes (30-day terms)

% FOREIGN PURCHASES

100%

SELLING TerritorY

100% (Domestic market)

EMPLOYEES

22

LOCATION

PREMISES

Rented

OTHER PREMISES

Subject's registered office and administrativec offices are located on the above-mentioned address.

These facilities are shared with the company Bunge Uruguay S.A.

 

Commercial Office: Continuación Echevarriarza 3535(B) Ofi. 305 Complejo "Torres del Puerto" torre B. Montevideo, Uruguay. Telephones: +598.2.628.4775 - 623.1460

 

The company has a reception and dispatch warehouse for solid fertilizers (Deposito Miryn S.A.), with a storage capacity of 150,000 tons, and in Fray Bentos it has a tank warehouse for storing liquid fertilizers with a capacity of 4,500 tons.

Address of Myrin warehouse: Camino Duran 4200 -  Montevideo .

Address of Fray Bentos warehouse: Terminación Dr. Andrés Montano S/N - Fray Bentos .Storage capacity of 4,500 tons.

 

Former address: Ruta 8 Km. 17.500, Zona América

 

Outsourced warehouses.

Comments

 

The Tax General Directorate reported that subject holds its Valid Annual Certificate (Date of issue: 04/11/2011, Date of expiry: 30/11/2012).

Type of Taxpayer: Taxpayer not listed as Special Control of Companies

 

Customer:  Italcol De Occidente Ltda.

 

 

 

 

FINANCIAL INFORMATION

 

Disposition

Poor. Very few information was given. Politely.

Interviewee(s)

Third-party sources

Information provided

After strongly insisting, we were finally attended by Mr. Pablo Gallandat (General Accountant), who kindly commented that they have "never" provided any information to third parties, including confirmation of information.

 

This report was developed with information that was collected from third-party sources and official. In consulted sources, it was not found any balance sheets.

 

Subjcet is a privately-held company that has operated for 8 years in the market, with a stable activity. It is considered a medium-sized company, and it has appropriate resources required for developing its activities. Trade references are positive, which means a good handling of its lines of credit.

 

SALES

US$ 0.00 ()

FINANCIAL SITUATION

NN: UNDETERMINED

This company's Financial Situation is deemed to be UNDETERMINED because it was not found any financial figures to carry out a financial analysis of its performance over the last fiscal year.

Insurance Comments

 

It was not obtained any information on insurances.

 

 

 

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

 

(Confidential Information)

TRADE REFERENCES

Supplier: BUNGE ARGENTINA S.A.

Tel.: (54 11) 51693200

Country: ARGENTINA

Goods/Services? : Storage service

 

 

Highest credit? : US$ 80,000.=

 

Client since? : 2005

Terms? : 30 days

Performance? : Prompt

Supplier: DEPÓSITO MYRIN S.A

Tel.: (5982) 3239000

Country: URUGUAY

Goods/Services? : Storage service

 

 

Highest credit? : Not specified

 

Client since? : 2005

Terms? : 30 days

Performance? : Prompt

 

 

Comments :

BANKING DEBT

The Superintendency of Financial Services reported to 12/2012 the following debt registered under subject's name:

 

                                                                              Ps$           US$

Banco Itaú Uruguay SA. Rating: 1C

OUTSTANDING - NON SELF-LIQUIDATING          0.00             0.16

TOTAL RESERVES                                                0.00       350.00

CONTINGENCIES                                                   0.00     69,999.84

 

Citibank N.A. Sucursal Uruguay. Rating: 4

 

TOTAL RESERVES                                               0.00      9,000.00

CONTINGENCIES                                                  0.00     18,000.00

 

Ratings:

1C Debtors with a strong payment capacity, have a high probability of paying obligations on time.

4  Debtors with a very compromised payment capacity.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.