LAAD Americas N.V.
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?
Latin American Agriculture Development Corp (LAAD) is a private dedicated agricultural small and medium enterprise (SME) bank with a +50-year positive track record in financing SME agribusinesses throughout Latin America and the Caribbean. LAAD finances private agribusiness projects involving all phases of production, processing, storage, services, technology, and marketing in the fields of agriculture, livestock, forestry, and fishing.
What is our funding objective?
FMO’s long-term financing will enable LAAD to support agribusiness SMEs in Latin America and the Caribbean (LAC), increase its loan portfolio, and improve the maturity profile of its funding.
Why do we want to fund this investment?
FMO's loan provides access to long-term financing for agricultural SMEs. LAAD’s activities stimulate rural development, strengthen global food security, and promote environmental sustainability through lending based on the IFC performance standards. Lastly, LAAD not only contributes to job creation in rural areas, which generally have higher poverty rates, but also to the generation of exports for the country. LAAD's new proposed transaction will have a 25% Green Label and a 100% RI Label.
What is the Environmental and Social categorization rationale?
LAAD is categorized as A, reflecting the FI's portfolio exposure to high contextual risks in the LAC region, particularly those linked to primary agriculture activities (crop and animal production) which form a main part of the FI’s portfolio. However, with the FI’s portfolio largely focused on SMEs, there is limited exposure to large-scale primary agriculture. Also, as part of its E&S policy, LAAD does not finance category A projects. LAAD has implemented a functional Environmental and Social Management System (ESMS) with adequate organizational capacity to mitigate contextual risks within its portfolio and manage portfolio clients’ E&S performance. Since 2021, LAAD has publicly communicated the integration of sustainability as a key pillar in its strategy.
More investments
| Date | Total FMO financing |
|---|---|
| 8/5/2022 | USD 40.00 MLN |
| 7/16/2020 | USD 48.00 MLN |
| 7/16/2020 | USD 4.00 MLN |
| 3/18/2016 | USD 22.00 MLN |
| 1/19/2021 | USD 25.00 MLN |
- Website customer/investment
- https://www.laadsa.com
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Agribusiness, Food & Water
- Publication date
- 1/2/2025
- Deadline for feedback
- 3/3/2025
- 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) - A
- Translation
- https://www.fmo.nl/laad