Project detail - ECOM AGROINDUSTRIAL CORPORATION LTD

ECOM AGROINDUSTRIAL CORPORATION LTD

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Who is our client

Ecom Agroindustrial Corp. Ltd is a global commodity trading and processing company focusing on coffee, cotton and cocoa in major producing and consuming countries. The company turnover in 2019 exceeded USD 5.7bln, they handled 13.8mln bags of coffee, 3.2mln bales of cotton and 1.4 mln tons of cocoa, making it a top tier participant in each of its core businesses. With over 170 years of market experience, Ecom is committed to responsible leadership within the soft commodities industry.

Funding objective

Ecom plays a crucial role in rural areas, especially with respect to inclusive economies and supporting smallholder farmers to produce more in a more sustainable manner. The funds will support Ecom’s operations and investments throughout the supply chain in origin markets through financing of CAPEX investments and working capital needs.

Why we fund this project

A third of the world's 7.3 bln people are smallholder farmers who produce nearly 70% of all food consumed worldwide on 60% of the planet’s arable land. This group of farmers is vital to satisfy the increased demand for food of our growing world population, yet they represent the majority of the poorest people on earth. Ecom works directly with cocoa, coffee and cotton farmers and supports their improvement through training, certification and a strong focus on the offtake of quality products. FMO works together with Ecom to develop and test KPI’s to be able to measure the impact of the company’s activities on smallholder livelihood.

Environmental and social rationale

While all IFC Performance Standards (PS) are applicable to this investment, FMO’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following PSs: 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. FMO will periodically review the project’s ongoing compliance with the Performance Standards. Issues related to PS 5: Land Acquisition and Involuntary Resettlement, PS7: Indigenous Peoples (IPs) and PS8: Cultural Heritage, are not expected with this investment for the following reasons: no land will be required to be obtained (processing operations are already established); IPs are not impacted by the company’s operations nor are matters of cultural heritage as processing plants are located in existing industrial areas and farmers supplying to the company have existing properties/fields and any development would be limited to replanting with higher producing coffee or cocoa plants.

More investments

Date Total FMO financing
11/29/2018 USD 10.00 MLN
12/14/2017 USD 35.00 MLN
12/21/2016 USD 20.00 MLN
12/22/2014 USD 25.00 MLN
Website client
http://www.ecomtrading.com
Country
Global
Sector
Agribusiness, Food & Water
Signing date
12/11/2020
Total FMO financing
USD 60.00 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+