IDB Invest, BBVA, Interbank Promote the Sustainability and Expansion of Latin America’s Agro-Export industry
IDB Invest, a member of the IDB Group, has approved financing for Agrícola Cerro Prieto S.A. The transaction will strengthen the sustainability strategy of one of the most important agro-exporters in Peru and support boosting its local production, as well as the company’s international expansion in Colombia. IDB Invest and BBVA will contribute $50 million each; Interbank will contribute $60 million.
The financing will allow improvements in production efficiencies, with significant yield increases, including an increase in avocado production on almost 500 hectares and more than 1,000 hectares for blueberries in Peru, particularly in rural areas like Chepen province in La Libertad region, and the Lagunas de Mocupe district, in Chiclayo province, Lambayeque region. In addition, it will promote the increase of its production to more than 1,500 hectares of avocado fields in Colombia, supporting the Eje Cafetero area in Manizales.
The financing offers a term of up to 10 years, with a two-year grace period, aligning conditions to the crops’ productive cycle. This is essential for this industry, since it takes at least five years for avocados to produce quality fruit for export. The financing will contribute to Agrícola Cerro Prieto's investment plan to grow its sustainable business model and position itself as a key brand for fruit and vegetable production in the region.
In addition, IDB Invest will advise Agrícola Cerro Prieto in the adoption of climate-smart agriculture measures to reduce its carbon footprint, increase climate resilience, and increase resource efficiency. A robust Environmental and Social Action Plan will also be implemented, highlighting measures to improve the sustainability of Agrícola Cerro Prieto's business, such as evaluations of cumulative impacts and climate change, which include adaptation and mitigation measures, quantification and reporting of greenhouse gas emissions, sustainable water management and pollution prevention, among others.
“This financing reinforces our support for the region's agro-export sector and highlights the IDB Group's Vision 2025 strategy. Betting on sustainable food production and, at the same time, reducing the carbon footprint is key to the countries’ economic recovery,” said James P. Scriven, CEO of IDB Invest.
“We are very proud to have received the necessary qualification to access this important financing, after having passed an extremely rigorous due diligence, which confirms the commitment of all of us who are part of Cerro Prieto with sustainability as part of the DNA of our organization,” said Alfredo Lira, CEO of Agrícola Cerro Prieto. "At ACP, sustainability cuts across all levels of the organization and is a fundamental part of our business strategy."
“For BBVA, sustainability is a strategic priority. Banking can help mitigate climate change and promote inclusive growth. For this reason, it is essential to accompany companies in their transition to a low-carbon economy. BBVA was the first Peruvian bank to grant sustainable financing – for Ferreycorp – and in recent months we have closed sustainable agreements with important companies such as Agrícola Cerro Prieto, El Pedregal and Cálidda, among others, who share our greener and more inclusive vision," said Gustavo Delgado Aparicio, General Manager of Business and Corporate Banking at BBVA in Peru.
“At Interbank we seek to contribute to the development of the country by promoting sustainable development practices. In this sense, we are proud to join Agrícola Cerro Prieto in this deal aimed at strengthening its sustainability strategy in a key sector such as agro-exports,” said Víctor Cárcamo, Vice President of Commercial Banking at Interbank.
This deal is expected to contribute to two United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8) and Partnerships to achieve the goals (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Agrícola Cerro Prieto
Agrícola Cerro Prieto S.A. (ACP) is part of the Cerro Prieto Group, also made up of Qali Fruits S.A.C., Cerro Prieto Colombia S.A.S. (CPC) and Irrigadora Cerro Prieto. ACP is an agro-export company. Its main shareholder is the Corporación Financiera de Inversiones S.A. (CFI), a holding company with 25 years of experience focused on investments in competitive sectors such as agriculture, energy and real estate. ACP's second largest shareholder is the Municipal Employees Retirement System (MERS), a pension fund for municipalities in the state of Michigan, USA. ACP started operations in 2008 and focuses on planting, production and packaging of fresh fruit, having avocados and blueberries as the main crops. When it comes to avocados, it’s Peru’s fourth main exporter with a 7% market share; in blueberries, it’s the seventh main exporter in Peru with a 5% market share. Its other two main crops are table grapes and asparagus. Qali Fruits is in the potted organic blueberry business and CPC is involved in the cultivation of Hass avocado in Colombia.
BBVA is a global financial group founded in 1857 with a customer-centric vision. It has a leadership position in the Spanish market, is the largest financial institution in Mexico and has leading franchises in South America. In addition, it is the first shareholder of Garanti BBVA, in Turkey, and has an important investment banking, transactional and capital markets business in the US. It aspires to make all the opportunities of this new era available. This is focused on the real needs of clients: to provide the best solutions and help them make the best financial decisions, through an easy and convenient experience. The company is based on solid values: the customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
It is one of Peru’s main financial institutions. It has a digital platform of products and services to serve its more than three million customers, as well as more than 215 Financial Stores, the most convenient network of ATMs and more than 5,500 Agents throughout Peru. Digital transformation is a strategic priority that has allowed it to bring its services to more Peruvians in the place and time they need them, in an agile and simple way.