Project detail - Limbopack S.A.S.

Who is our customer

Limbomar S.A. and Limbopack S.A, founded in 2011 and 2022, respectively, are Ecuadorian companies active in the production and processing of shrimps. Both companies belong to Almar Group ("Group"), a front-runner in smart aquaculture with more than +40y track record in Ecuador.

What is our funding objective?

FMO provides up to USD 35 million long-term financing (USD 5 million are uncommitted) to Limbopack's packing plant and to fund an electrification project for Limbomar's farms

Why do we fund this investment?

Aquaculture is a key engine of Ecuador's economy, representing the second biggest export product of the country after oil production and one of the primary sources of employment. By supporting Limbopack S.A.S., FMO will contribute to creating more than 1,000 jobs, of which around 700 will be for women. The financing for Limbomar S.A. will also contribute to (i) solidifying Limbomar's efforts towards low greenhouse gas (GHG) emissions, (ii) reducing the Group's carbon footprint, and (iii) supporting the sector's decarbonization pathway with the substitution of fossil fuels with green sustainable energy sources (http://www.cenace.gob.ec/wp-content/uploads/downloads/2021/04/Informe-Anual-CENACE-2020-Parte-1.pdf). Additionally, electrification enables the sustainable increase of productivity through the introduction of technology, automation, and monitoring of essential production practices such as feeding, animal health, and environmental conditions. Lastly, Limbopack and Limbomar (ASC certified) are committed to sustainable production practices; as a result, both facilities are also expected to be labeled green.

What is the Environmental and Social categorization rationale?

This concerns an E&S B+ categorized investment, as the company engages in primary production and primary processing of Pacific White Shrimp - Litopenaeus Vannamei- (own operations, no supply chain). These activities come with potentially adverse environmental or social impacts that extend site boundaries and might, in part, be irreversible. Still, they can be prevented and addressed through relevant mitigation measures. E&S characteristics of this specific investment include assessment of the land acquisition process, history of the land and no deforestation, production, animal welfare practices and use of veterinary inputs, labour and accommodation conditions, organizational Health and Safety, biodiversity, and pollution risk management. The E&S context includes potential environmental and social risks in their companies' surrounding communities -not limited to- potential pollution risks. ESG performance will be focused on the assessment and management of these risks by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health, and Safety Guidelines for Aquaculture, FMO's animal welfare position statement, and International Sustainable Aquaculture Practices. This will allow the companies to steer their efforts to design and implement mitigants considering the root causes, enablers, and unique characteristics of the country of production and population. FMO's environmental and social due diligence indicates that the investment will have an impact that must be managed in a manner consistent with the following IFC Performance Standards in particular: 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, 7 Indigenous Peoples, and 8 Cultural Heritage, are not applicable in this period, as the land was acquired through a willing buyer-willing seller transaction, and there is no impact on Indigenous Peoples, nor cultural heritages have been identified. Nevertheless, as expansion plans are included, mechanisms and requirements defined by all PSs have been considered to ensure the company manages potential impacts if they become applicable in new acquisitions. FMO will periodically review the project's compliance w