Machu Picchu Foods S.A.C
Status: Investment in contracting phaseWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Machu Picchu Foods (MPF, the Company) is a responsible contract manufacturer of single-origin chocolates, cocoa, and confectionery products. Founded in 2000 in Lima, Peru, the Company has expanded to become one of the world’s leading producers, supplying high quality cocoa and chocolate products to the local and international markets. The Company has 3 production facilities, in Callao and Pisco, together employing ~2,200 local employees, directly and indirectly impacting ~18,000 smallholder farmers.
What is our funding objective?
High cocoa prices significantly increase working capital needs for cocoa processors. The proposed USD 20 mln loan to MPF is aimed to support its permanent working capital needs and diversify its funding sources.
Why do we want to fund this investment?
MPF is the largest local cocoa processor in Peru, and its operations are pivotal in Peru’s agricultural exports, contributing to the country’s economic growth. MPF enhances the value of cocoa by processing it into final products, thereby boosting income for local communities. The Company also implements targeted initiatives to support local farmers and plays an important role to improve the standard of living of smallholder farmers. The transaction qualifies as inclusive (given the technical support provided to smallholders) and green (MPF sources cocoa beans which have Rainforest Alliance and EU organic certifications). In addition, the Company works with cooperatives and corporates on certification programs including Fairtrade and Nestle Cocoa Plan.
What is the Environmental and Social categorization rationale?
E&S categorization B+, FMO’s environmental and social due diligence indicates that the intended investment will have impact which must be managed in a manner consistent with the following IFC Performance Standards: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts; PS 2 – Labour and working conditions; PS 3 – Resource Efficiency and Pollution Prevention; and PS 4 – Community Health, Safety and Security. Additionally, IFC Performance Standards 6 is indirectly triggered through the Company’s supply chain. IFC PS 5 is not considered to be applicable as there is no land acquisition and no economic displacement as part of the Company’s activities. IFC PS 7 is not relevant as the only interaction with indigenous people is via the purchase of cocoa beans produced by the communities (no contract). IFC PS8 is not relevant since there is no impact in tangible or intangible cultural heritage as result of MPF’s activities.
More investments
| Date | Total FMO financing |
|---|---|
| 1/31/2018 | USD 2.00 MLN |
| 6/7/2021 | USD 8.00 MLN |
- Website customer/investment
- https://www.mpf.com.pe/
- Region
- Latin America & The Caribbean
- Country
- Peru
- Sector
- Agribusiness, Food & Water
- Publication date
- 9/9/2024
- Deadline for feedback
- 11/8/2024
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+
- Translation
- https://www.fmo.nl/machu-picchu-foods