Project detail - AGROVISION PERÚ S.A.C.

AGROVISION PERÚ S.A.C.

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Who is our client

Agro Vision Peru SAC (“Agrovision”) is a high growth, high impact, super-fruit farming company with large-scale land and water assets and operations based in Northern Peru. The vertically integrated grower-packer-shipper has developed and nearly fully planted its 2,000 hectares in Olmos, in addition to over 500 hectares in adjacent area landholdings, in the Lambayeque region, where it is on track to increase plantings to 4,000 hectares by 2022. Through licenses and strategic relationships with leading breeding programs globally, Agrovision produces conventional and organic blueberries, table grapes, asparagus and avocados. It produces premium varieties of blueberries, making it the company with the most diverse offering of premium and proprietary commercial varieties in Peru. The Company is Global GAP, SMETA, FSMA certified and has Asia, North America and Europe as key export markets.

Funding objective

FMO is offering a USD 15mln subordinated loan (non-convertible) to be financed out of the Building Prospects fund to finance part of the capex expansion plan. The investments will be related to the expansion of its packing and housing facilities, equipment & machinery and development of crops. As mentioned, the target is to further develop the land to over 4,000ha.

Why we fund this project

FMO provides financing that commercial banks are not capable to, due to the subordinated character of the loan as the primary source and tenor as the secondary source. FMO’s network enables the company to consider alternative techniques for desalination of irrigation water. On the social side FMO has been advising the company on how to work with local communities on additional development opportunities. FMO will support possible AWS certification for sustainable water management.

Environmental and social rationale

Agrovision Peru is a category B+ client. FMO’s preliminary environmental and social due diligence indicates that the investment may have impacts which must be managed in a manner consistent with the following Performance Standards: - PS 1: Assessment and Management of Environmental and Social Risks and Impacts; - PS 2: Labour and working conditions; - PS 3: Resource Efficiency and Pollution Prevention - PS 4: Community Health, Safety and Security; - PS 5: Land Acquisition and Involuntary Resettlement; - PS 6: Biodiversity Conservation; and - PS 8: Cultural Heritage. Furthermore, PS 7 is not triggered since indigenous people are not present in the region, and are not impacted, directly or indirectly, by the financed activities. FMO will periodically review the project’s compliance with the Performance Standards.

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Date Total FMO financing
9/30/2020 EUR 0.08 MLN
Region
Latin America & The Caribbean
Country
Peru
Sector
Agribusiness, Food & Water
Signing date
4/22/2020
Total FMO financing
USD 15.00 MLN
Fund
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)
B+