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Banagro SME Green Financing Partnership

Project number 12276-02
Country Chile
Sector Financial Institutions
Status In implementation

Basic information

Company name
Banagro S.A.
Investment type Loan
E&S category
FI-2
Disclosed date
Projected board date
Approval date
Signed date
Sponsoring entity
Coagra S.A
Team Leader
Pun, Zoila

Financial Summary

Financing amount $ 3,000,000
Financing Currency
USD

Client
information

Client Contact name: José Francisco Larrain Cruzat
Title: General Manager
Phone number: (56 72) 2202 545
Email address: josefrancisco.larrain@banagro.cl

PROJECT
SCOPE
AND
OBJECTIVE

The proposed operation contemplates a Senior Loan of up to US$3 million (the "Loan") to be financed by IDB Invest. The term of the Loan is five years. Loan funds will be used to finance Small and Medium Sized Enterprises ("SMEs") of the productive sector in Chile.

Environmental
and
Social
Review

  1. Scope of Environmental and Social Review. The environmental and social review was carried out based on information provided by Banagro and interviews with its senior management group.
  2. Environmental and Social Categorization and Rationale. The sub-projects to be supported have a medium risk potential, such as substitution of annual crops by fruit trees, or drip irrigation systems in horticultural crops and fruit trees. Therefore, per IDB Invest’s Environmental and Social Sustainability Policy, the FI has been categorized as FI-2.
  3. Environmental and Social Risks and Impacts. The main E&S risks of this projects are associated with FI’s capacity to identify and manage the E&S risks associated with its lending activities. The potential risks associated with its main lending activities include, among others, working conditions and administration of labor relations of agricultural workers, the use of approved agrochemicals and their proper handling, prevention and mitigation of pollution by liquid and solid waste, or efficient use of water. Banagro is in the process of implementing an environmental and social management system to identify and manage the E&S risks of its portfolio, integrated to its credit approval process. Its systems include E&S procedures under development and has a qualified team trained to manage E&S risks and impacts.
  4. Mitigation Measures. Banagro will be required to ensure that all loans supported comply with IDB Invest’s Exclusion List, applicable E&S local laws, and the IDB Invest Environmental and Social Guidelines.  To enable the Borrower to better understand IDB Invest requirements, Banagro attended the IDB Invest Environmental and Social Risk Management training workshop for financial intermediaries. IDB Invest requires that its FI clients develop and implement an External Communication Mechanism to review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.
  5. Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email requestinformation@idbinvest.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or  MICI@iadb.org, or calling +1(202) 623-3952.
For inquiries, comments and requests about the project

For inquiries, comments and requests about the project

Information Request