Company name

Agrícola Pampa Baja S.A.C. (“APB” or the “company”)

Project number

12217-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Peru

Sector

Agribusiness

Status

In implementation

Disclosed date

06/18/2018

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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07/18/2018

Approval date

07/20/2018

Signed date

09/14/2018

Sponsoring entity

N/A

Team leader

Olazo Baracco, Ericka

Investment type

Syndicated amount

N/A

Financing amount

USD $ 25,000,000

Currency

USD

Project scope and objective

The proposed financing consists of a credit line in favor of Agrícola Pampa Baja S.A.C (“APB” or the “company”) for up to US$25 million with a 10-year tenure, a 2-year grace period and a collateral package with a coverage ratio of 110% at liquidation value. The funds will be allocated to: (i) capital investments for the plantation of 600 additional hectares of avocado and the construction of industrial packing facilities (up to US$9 million); (ii) permanent working capital (up to US$8 million); and (iii) refinancing of short and medium-term debt (up to US$8 million). The total cost of the project is US$ 85 million. The structure provides sufficient flexibility to address common contingencies in projects of this nature, in addition to including for the first time at IDB Invest the “El Niño” clause that allows the client to reschedule one year’s amortization in case of the manifestation of a climatic event that has adverse effects on the ability to repay.

APB, founded in 1998 by Octavio Paredes, is a family agricultural business that has two business lines: (i) the sowing, production and packing of fresh fruits (avocado, grapes, tangerines and grenade) and of vegetables (paprika and sweet yellow onion) and (ii) milk production through its livestock line, being the main producer of milk in Peru.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY

60.0 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

ENVIRONMENTAL AND SOCIAL ACTION PLAN - AGRICOLA PAMPA BAJA

82.2 Kb

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Contact information

For inquiries, comments and information requests about the project

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Mr. Juan C. Paredes

POSITION

General Manager.

PHONE NUMBER

+51959376882

EMAIL

jparedes@pampabaja.com.

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices