SPAYKA LLC
Status: Approved investmentWhy 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 customer
Spayka is a vertically integrated fruits and vegetables trader based in Armenia. Founded in 2001, it developed into a classic trucking company and circa 2009 integrated upstream into own production of fruits and vegetables in Armenia and neighboring countries and their exports.
What is our funding objective?
FMO’s funding will support Spayka's long-term strategy to integrate upstream - to construct the latest technology greenhouses to grow tomatoes and bell-peppers.
Why do we fund this investment?
Spayka is a family-owned company and has been growing fast for the last couple of years, however corporate governance remains underdeveloped. FMO has made a full assessment and will provide the company a corporate governance action plan, which will improve the processes within the company and make governance more structured. Additionally, the project funded by FMO will bring best available technology for growing tomatoes into the country and will create around 300 permanent jobs.
What is the Environmental and Social categorization rationale?
Risk Categorization: B+ due to some direct and indirect risks associated with E&S management systems, use of resources, waste utilization, irrigation water supply and quality, supply chain. Applicable IFC performance standards: - 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. Standards PS 5-8 are not applicable. Applicable EHS Guidelines: General guidelines, Guidelines for annual crop production.
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Agribusiness, Food & Water
- Publication date
- 11/14/2017
- Effective date
- 4/26/2018
- Total FMO financing
- USD 10.75 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+