Company name
Sociedad Agricola Viru S.A.
Project number
PE-L1168
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
B
Country
Peru
Sector
Agribusiness
Status
Inactive
Disclosed date
04/26/2016
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
06/07/2016
Approval date
06/07/2016
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 48,500,000
Currency
USD
Project scope and objective
Company Description
Sociedad Agricola Viru S.A. (“Viru” or the “Company”) is one of Peru’s leading agro-exporting companies that ranks within the country’s top three exporters of processed asparagus, artichokes and peppers. The Company began operations in 1994 as a processor of asparagus and has achieved greater product diversification (artichokes, peppers, sauces lines) during its 20 years of business operations. It conducts its agricultural operations on approximately 6,190 hectares (ha) of land (owned and leased) certified under Globalgap, employs approximately 7,500 people, and provides technical assistance to approximately 300 small farmers in its supply chain to ensure high quality food products.
Project Objective and Description
IIC proposes to provide a senior secured corporate loan to Viru to finance the deployment of new technologies to expand its vegetable processing export business and conduct its operations in a socially inclusive and environmentally sustainable way. These actions are expected to strengthen Viru’s competitiveness. The investment plan includes: i) increase agricultural output by developing additional asparagus, avocado and other plantations; ii) increase the application of technologies to conserve water on irrigated land, improve food quality, and reduce production costs; iii) improve its financial structure by refinancing an existing loan; and iv) finance working capital and a gender equality certification (collectively, the “Project”).
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
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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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