Company name

Fideicomiso para la Financiación de Establecimientos Lecheros ("FFIEL")

Project number

12227-01

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

Uruguay

Sector

Agribusiness

Status

In implementation

Disclosed date

09/20/2019

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

Projected board date
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10/21/2019

Approval date

12/12/2019

Signed date

12/28/2020

Sponsoring entity

Proleco / Conaprole

Team leader

Carrasco, Almudena

Investment type

Syndicated amount

N/A

Financing amount

USD $ 40,000,000

Currency

USD

Project scope and objective

In order to support growth ventures in the Uruguayan dairy industry involving investments in infrastructure projects and permanent working capital, the Cooperativa de Ahorro y Crédito Proleco (“Proleco”), with the support of the Cooperativa Nacional de Productores de Leche (“Conaprole”), will create a financing system for Proleco’s partners (the “Sub-Borrowers”) through a financial trust created under Uruguayan law (the “FFIEL”). The FFIEL will be funded through public issues of subordinated debt, public issues of trust participation certificates and through senior debt securities issued under a private bid endorsed by IDB Invest for up to US$40 million, consisting of a US$20 million Committed Tranche I and a US$20 million Uncommitted Tranche II (the “Project”).



As the originator, Proleco will detect loan opportunities for Sub-Borrowers, who shall subsequently undergo a credit check by CPA Ferrere –an independent professional entity–, taking into consideration IDB Invest’s eligible criteria (the “Sub-Loans”). The loans approved by CPA Ferrere will then be documented and financed by partner financial institutions, including Proleco. Once a sufficient number of sub-loans had been made these institutions shall execute the transfer and acquisition by the Issuing Trust. 


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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

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Contact information

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Client Contact

CONTACT NAME

N/A

POSITION

N/A

PHONE NUMBER

N/A

EMAIL

N/A

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

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