IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, has granted a $25 million loan for 10 years to Agrícola Pampa Baja S.A., a Peruvian agribusiness company.
With this transaction, IDB Invest continues financing the expansion of the production and productivity of the agro-export industry of fruits and vegetables of Peru, a non-traditional agricultural sector that constitutes an important source of income and employment in rural areas.
The loan will partially finance a $85 million project in investments for the expansion of agricultural production and industrial packing facilities, permanent working capital and refinancing of short and medium-term debt to align it with the business cycle. The financial institutions for development Entrepeneurial Development Bank (FMO) and DEG Bank will also participate by partially financing the project.
For the first time in an IDB Invest loan, the project includes an El Niño clause in case of climate events that may affect the operations of Agrícola Pampa Baja and its payment capacity, mitigating the effects of climate change. Additionally, IDB Invest’s financing offers a long-term line aligned with the business cycle of Agrícola Pampa Baja, which is not typical for the agricultural sector in Peru.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About Agrícola Pampa Baja
Agrícola Pampa Baja is a family agricultural business with two business lines: the sowing, production and packing of fresh fruit crops (avocado, table grapes, mandarin and pomegranate) and vegetables (paprika and onion) for export; the dairy business, being the main primary producer of milk in the domestic market and marketing to large dairy companies in Peru.