AGROFERTIL SA
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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 customer
Agrofértil, founded in 1993, is the leading distributor of fertilizers, crop protection products and seeds. The Company also provides agronomic services and is headquartered in Ciudad del Este. Through their extensive network of distribution centers and large number of storage silos located in agricultural zones or rural centers near the major crop regions in Paraguay, the company assists almost 2,500 clients.
What is our funding objective?
FMO provides two facilities: 1) an up to USD 18 million long-term facility to finance Agrofértil’s investments in silos and 2) an up to USD 15 million medium term working capital loan to fund the Company’s structural working capital needs and increase their capacity to provide pre-harvest financing to farmers in Paraguay.
Why do we fund this investment?
Agrofértil plays a key role in the agricultural value chain in Paraguay, supporting small and medium sized farmers and cooperatives. Agribusiness is considered to be the engine of the Paraguayan economy. Paraguay is the sixth largest producer and fourth largest exporter of soybeans worldwide. Through this project, FMO will be enhancing Agrofértil's capacity to provide pre-harvest financing to farmers and will contribute to the further development of agriculture sector, a key pillar of Paraguay's economy. Thanks to the pre-harvest financing and agronomic advice provided by Agrofértil, farmers can increase their resource efficiency and are able to increase their productivity and profitability.
What is the Environmental and Social categorization rationale?
The risk category is B+. This is due to supply chain risks. The following Performance Standards are applicable: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts, PS 2 - Labor and working conditions, PS 3 - Resource Efficiency and Pollution Prevention, PS 4 – Community Health, Safety and Security, PS 6 – Biodiversity Conservation and Sustainable Management of Living. Not triggered are PS 5 - Land Acquisition and Involuntary Resettlement, PS 7 - Indigenous People and PS 8 - Cultural Heritage as this client will not acquire land for expansion and there are no indigenous people or cultural heritage sites present in the area of influence of the client.
More investments
| Date | Total FMO financing |
|---|---|
| 10/22/2020 | EUR 0.07 MLN |
| 6/26/2020 | EUR 15.00 MLN |
| 11/9/2021 | EUR 0.06 MLN |
| 5/12/2022 | USD 10.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Paraguay
- Sector
- Agribusiness, Food & Water
- Publication date
- 3/27/2020
- Effective date
- 6/26/2020
- Total FMO financing
- EUR 18.00 MLN
- Funding
- FMO NV
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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+