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

LEDESMA S.A.A.I.

Back to map

Who is our client

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.

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 we fund this project

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).

Environmental and social 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.

Region
Latin America & The Caribbean
Country
Argentina
Sector
Agribusiness, Food & Water
Signing date
8/5/2019
Total FMO financing
USD 35.00 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+