Project detail - AGROCORP INTERNATIONAL PTE LIMITED

AGROCORP INTERNATIONAL PTE LIMITED

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Who is our client

Agrocorp is a 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

FMO is providing additional financing to Agrocorp, structured as a top up to the existing working capital facility jointly financed by Rabobank. The transaction will improve the funding structure of Agrocorp by providing much needed mid-to-long term working capital driven by higher commodity prices.

Why we fund this project

Agrocorp is a medium sized global Agri-Commodity trading and processing company developing into a supply chain manager. Agrocorp has a strong presence in several Least Developed Countries (LDCs). More than half of the trade flows (51%) financed by FMO concerns commodities that are either sourced or sold in LDCs. As such, the company fits well into the strategic plan of AFW since it supports food security by moving food from surplus areas to deficit areas. It also provides farmers access to markets, liquidity, inputs, and services.

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 processing 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 operated plants and Good Agricultural Practice support in the supply chain for grains, nuts 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 supply chains in which Agrocorp is engaged are located in agricultural consolidated areas; PS7 and PS8 on Indigenous Peoples and Cultural Heritage are not applicable because the supply chains are located in areas consolidated for agriculture without impacts on indigenous peoples. 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
7/5/2022
Total FMO financing
USD 50.00 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+