AGRICOLA PAMPA BAJA S.A.C.
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
Agricola Pampa Baja, established in 1999, is a family owned company engaged in the production of fresh fruits & vegetables and also holds dairy operations for the production of milk.
What is our funding objective?
The purpose of the underlying transaction is to finance additional capex, tenor extension of funds used for past capex (including refinancing of the existing USD 15 mln FMO loan) and working capital. The fund will be used for the expansion in the Olmos plantation and crops change in Majes, ensure alignment of its long-term finance with current market conditions, and ensure sufficient availability of working capital during its expansion capex phase.
Why do we fund this investment?
Through the current transaction, FMO will continue a successful relationship supporting a company with a strong track record of growth, commitment to sustainability, and diversified operations, where we can have a positive impact with long term financing and support on ESG and Corporate Governance. This transaction fits with our Agribusiness strategy to grow in Peru in the F&V sector with companies where we can have a strong impact. Despite high liquidity in the Peruvian market, FMO’s transaction is additional as the long tenor is difficult to get from commercial banks.
What is the Environmental and Social categorization rationale?
Risk category is B+. Potential core E+S risks are: water stress, heavy rainfall due to El Nino and a potential lack of labor availability. The project does not pose direct reputational risks for FMO. Potential opportunity is seen in certifications from an E&S point of especially the SA 8000 certificate for good labor standards. The company currently performs well in Los Olmos. Given the effort in complying with relevant Peruvian law and meeting international standards the Client has demonstrated commitment on E&S requirements and is willing to further improve by understanding and meeting the relevant IFC PS. For the operations of the Company, the following IFC 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 and PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS 5 (Land Acquisition and Involuntary Resettlement), PS 7 (Indigenous Peoples) and PS 8 (Cultural Heritage) are not applicable because no people has been resettled neither physically nor economically, no indigenous people are present in the area of influence of the Company and no cultural heritage sites have been detected during the assessment.
More investments
| Date | Total FMO financing |
|---|---|
| 9/18/2018 | USD 1.00 MLN |
| 3/27/2020 | USD 15.00 MLN |
- Website customer/investment
- http://www.pampabaja.com
- Region
- Latin America & The Caribbean
- Country
- Peru
- Sector
- Agribusiness, Food & Water
- Effective date
- 9/18/2018
- Total FMO financing
- USD 24.00 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+