Project detail - SPAYKA LLC

SPAYKA LLC

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Who is our client

Spayka is a vertically integrated fruits and vegetables trader based in Armenia. Founded in 2001, it developed into a classic trucking company and circa 2009 integrated upstream into own production of fruits and vegetables in Armenia and neighboring countries and their exports.

Funding objective

FMO’s funding will support Spayka's long-term strategy to integrate upstream - to construct the latest technology greenhouses to grow tomatoes and bell-peppers.

Why we fund this project

Spayka is a family-owned company and has been growing fast for the last couple of years, however corporate governance remains underdeveloped. FMO has made a full assessment and will provide the company a corporate governance action plan, which will improve the processes within the company and make governance more structured. Additionally, the project funded by FMO will bring best available technology for growing tomatoes into the country and will create around 300 permanent jobs.

Environmental and social rationale

Risk Categorization: B+ due to some direct and indirect risks associated with E&S management systems, use of resources, waste utilization, irrigation water supply and quality, supply chain. Applicable IFC performance standards: - PS 1: Assessment and Management of Environmental and Social Risks and Impacts; - PS 2: Labor and working conditions; - PS 3: Resource Efficiency and Pollution Prevention; - PS 4: Community Health, Safety and Security. Standards PS 5-8 are not applicable. Applicable EHS Guidelines: General guidelines, Guidelines for annual crop production.

Region
Europe & Central Asia
Country
Armenia
Sector
Agribusiness, Food & Water
Signing date
4/26/2018
Total FMO financing
USD 10.75 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+