Project detail - LEDESMA S.A.A.I.


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

Ledesma is an agro-industrial Argentine company established in 1908. With its 100+ years history it has become a leading company in sugar and paper which is production produced from sugar cane bagasse, with a significant market share in the fruits, fruit juices, alcohol, bioethanol and cereals. The Company is publicly listed on the Buenos Aires Stock Exchange but is controlled by the Blaquier Family.

What is our funding objective?

FMO’s funding will be used to support the Company’s growth plans by financing capital expenditures related to its long-term business plan.

Why do we fund this investment?

The agro-production and processing sector is of great importance to the Argentina economy, due to its contribution to foreign currency generation and tax income as well as the considerable (indirect) employment that is related to the agricultural industry. The funds will enable Ledesma to further increase its sustainable sourcing and processing activities, which will allow for around 8,000 direct jobs in one of the poorest provinces of Argentina (Jujuy).

What is the Environmental and Social categorization rationale?

The investment is categorized as B+ based on the extent of the Company’s activities (over 120,000 hectares of land managed in several geographic areas with diverse activities). 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.

Latin America & The Caribbean
Agribusiness, Food & Water
Effective date
Total FMO financing
USD 35.00 MLN
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)