Status: Approved investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Burapha is a Lao-Swedish joint venture with forest plantations and processing capacity, which develops and manages agroforestry plantations in the greater Vientiane area (Laos). Burapha’s strategy is to increase its plantation base and to build a plywood mill of nominal capacity 59,000 m3, with the ultimate objective to produce cost competitive and sustainable FSC certified wood products, mainly plywood, for export and the domestic market.

What is our funding objective?

The proposed funding will be used for CAPEX of the plywood mill and expansion of plantations from 3,540 ha to 7,000 ha by the end of 2019.

Why do we fund this investment?

The proposed transaction fits with the agribusiness strategy and forestry strategy due to: i) the region (Laos), (ii) sector (Agro-forestry) with integrated production and processing, iii) catalysing/cooperation with preferred partner DFIs; iv) acceptable risk/ return balance; v) green and inclusive transaction.

What is the Environmental and Social categorization rationale?

The project is considered to be a medium high risk, category B+ project, based on general limited potential adverse social or environmental impacts that are mainly site specific and can be mitigated by normal industry practices. IFC Performance Standards 1 to 7 are applicable: E&S Management, Labour (circumstances), Pollution Prevention, Community, Land Acquisition, Biodiversity and Indigenous People. Performance Standard 8, Cultural Heritage is not relevant, there have been nor are expected areas of cultural significance to be impacted by Burapha’s operations. The client will comply with the IFC Performance Standards (IFC PS), the General IFC/WB EHS Guidelines and the sector-specific EHS guideline: Forest Harvesting Operations and Sawmilling and Wood-based products and will maintain FSC certification for its operations.

More investments

Date Total FMO financing
12/10/2018 USD 5.00 MLN
Lao People's Democratic Republic
Agribusiness, Food & Water
Publication date
Effective date
Total FMO financing
USD 5.00 MLN
Building Prospects
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)