Project detail - AGROTEC S.A.

AGROTEC S.A.

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Who is our client

Agrotec S.A. is a family owned business in Paraguay. The company provides agricultural inputs to farmers, cooperatives and grain collectors.

Funding objective

FMO’s funding will be used to provide a stable working capital base.

Why we fund this project

As one stop shop for farmers, Agrotec has a significant impact on farmers in Paraguay. By pre-financing the inputs, farmers gain access to credit. By providing technical assistance and developing new products, the production of farmers increases. This contributes to SDG 2: zero hunger.

Environmental and social rationale

B+ because of supply chain risks. The following Performance Standards are applicable: • 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 • PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources Performance Standard 5 (Land Acquisition and Involuntary Resettlement), Performance Standard 7 (Indigenous People) and Performance Standard 8 (Cultural Heritage) do not apply because the client will not acquire land for expansion, there are no indigenous people or cultural heritage sites present in the area of influence of the client.

Website client
http://www.agrotec.com.py/
Region
Latin America & The Caribbean
Country
Paraguay
Sector
Agribusiness, Food & Water
Signing date
6/5/2019
Total FMO financing
USD 10.00 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+