Project detail - AGROCORP INTERNATIONAL PTE LTD

AGROCORP INTERNATIONAL PTE LTD

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Who is our client

Agrocorp is a leading global Agri-Commodity trading and processing company specializing in the physical trading of various agricultural commodities such as pulses, wheat, rice, oilseeds, sugar, cotton and edible nuts.

Funding objective

The transaction will improve the funding structure of Agrocorp by providing working capital. By investing in this transaction, FMO will support Agrocorp’s gradual development into a supply chain manager. Together with Agrocorp FMO will implement farmer training programs, in countries in South-Asia, to start with in Myanmar.

Why we fund this project

As Agrocorp is a promising medium sized global Agri-Commodity trading and processing company keen to develop into s supply chain manager, its fits well in FMO’s AFW strategy, FMO will support Agrocorp on this journey. To that regard FMO will provide assistance to upgrade and further modernize systems within Agrocorp so that the company can improve its sourcing capacities and upgrade its supply chain in line with modern management practices. By doing so Agrocorp will reach out to numerous smallholders.

Environmental and social rationale

Agrocorp is an E&S category B+ client. This is based on limited and site-specific environmental and social risks and impacts at the JV plants and supply chain. These risks and impacts can be easily avoided or mitigated by incorporating Good International Industry Practices, including World Bank Group (WBG) Environmental, Health and Safety (EHS) General Guidelines for the JV plants and Good Agricultural Practice support in the supply chain for rice and pulses. The following IFC’s Performance Standards (PSs) are applicable for this investment: PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and Working Conditions, PS3: Resource Efficiency and Pollution Prevention and PS4: Community Health, Safety, and Security working with the supply chain. PS5: Land Acquisition and Involuntary Resettlement does not apply as there is no land transaction linked to this financing; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources does not apply as the activities of the JV is an existing industrial plant in an village area and no supply chain associated risks regarding conversion of natural habitats from third-party paddy and pulse suppliers as production is located in consolidated agricultural areas; PS7 and PS8 on Indigenous Peoples and Cultural Heritage are not applicable based on the location and already existing activities around Yangon. If the investment proceeds, FMO will periodically review the project’s ongoing compliance with the Performance Standards.

Website client
http://agrocorp.com.sg
Region
Asia
Country
Asia
Sector
Agribusiness, Food & Water
Signing date
5/6/2020
Total FMO financing
USD 25.00 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)
A