Agrocorp International Pte Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective customer?
Agrocorp is a global Agri-Commodity trading and processing company specializing in the physical trading of various agricultural commodities such as pulses, wheat, rice, maize, sugar, rice and edible nuts.
What is our funding objective?
FMO is providing additional financing to Agrocorp, structured as a top-up of up to USD 10mln and tenor extension to the existing USD 50mln working capital facility, jointly financed by Rabobank. The transaction will improve the funding structure of Agrocorp by providing much needed mid-to-long-term working capital driven by higher commodity prices and trading volumes.
Why do we want to fund this investment?
Agrocorp is a medium sized global Agri-Commodity trading and processing company, developing into a supply chain manager. It has a strong presence in several Least Developed Countries (LDCs) and Lower-Middle Income Countries (LMICs). More than half of the sales/distribution by Agrocorp concerns staple agri-commodities that are sold in those countries. As such, the company fits well into the strategic priorities of FMO since it supports food security by moving food from surplus areas to deficit areas. It also provides farmers access to markets, liquidity, inputs, and services.
What is the Environmental and Social categorization rationale?
Agrocorp is an E&S category B+ client. This is based on limited and site-specific environmental and social risks and impacts at the processing plants and supply chain. These risks and impacts can be avoided or mitigated by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the operated plants and Good Agricultural Practice support in the supply chain for grains, nuts and pulses. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security working with the supply chain; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS5: Land Acquisition and Involuntary Resettlement does not apply as there is no land transaction linked to this financing; PS7 and PS8 on Indigenous Peoples and Cultural Heritage are not applicable because the supply chains are located in areas consolidated for agriculture without impacts on indigenous peoples. FMO will periodically review the project’s ongoing compliance with the Performance Standards.
More investments
| Date | Total FMO financing |
|---|---|
| 7/5/2022 | USD 50.00 MLN |
- Website customer/investment
- http://agrocorp.com.sg
- Region
- Asia
- Country
- Asia
- Sector
- Agribusiness, Food & Water
- Publication date
- 9/27/2024
- Deadline for feedback
- 11/26/2024
- Total FMO financing
- USD 50.00 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+