LAAD AMERICAS N.V.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
LAAD Americas NV (“LAAD”) is an existing client of FMO since 2004. It is a non-deposit taking financial institution which provides medium- and long-term financing to agribusiness SME’s. It was founded in 1969 and contributes to the sustainable and social development of Latin America and the Caribbean. It has locations in 20 countries in its focus region.
What is our funding objective?
This loan has a dual objective. Firstly, to continue the growth of the agri portfolio that mainly consists of export-oriented SME's throughout Latin America and the Caribbean. Secondly, to support the growth of LAAD's green investments.
Why do we fund this investment?
LAAD’s line of business fits perfectly with FMO’s Agri and FI’s SME strategy as LAAD’s activities have a positive effect on stimulating rural development, strengthening global food security and promoting environmental sustainability. LAAD contributes to job creation in rural areas, which have proportionately higher poverty rates, and estimates that it created 9,658 jobs through its activities in 2020. Through LAAD, FMO supports the agri-SME segment that FMO cannot finance directly. As a non-deposit taking bank, LAAD relies on DFI’s for its longer-term funding. During the start of the pandemic, as markets spiraled, LAAD’s access to commercial funding deteriorated. Although access has improved, LAAD will continue to rely more on DFI funding as Latin America pulls out of the crisis. Through our Green Tranche, we are also supporting the expansion of LAAD’s portfolio into greener investments.
What is the Environmental and Social categorization rationale?
LAAD has been categorized as E&S risk category A due to the financial institution's exposure to contextual risks in the countries, the agricultural sectors it operates ,and the exceptional cases in which it finances new farm developments. LAAD has implemented a robust Environmental and Social Management System (ESMS) including advanced analysis using GIS (Geographic Information System) of new clients. The ESMS is under periodic review and continuous improvements.
More investments
| Date | Total FMO financing |
|---|---|
| 7/16/2020 | USD 48.00 MLN |
| 7/16/2020 | USD 4.00 MLN |
| 3/18/2016 | USD 22.00 MLN |
| 1/19/2021 | USD 25.00 MLN |
- Website customer/investment
- http://www.laadsa.com
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Financial Institutions
- Publication date
- 9/16/2021
- Effective date
- 8/5/2022
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
-
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