A second round of financing from IDB Invest will enable this Peruvian company to increase its agricultural and industrial production sustainably.
Across Peru, from Piura in the northwest to Arequipa in the southeast, Danper Trujillo grows high-end vegetables, fruits and Andean “superfoods” such as quinoa for export to the farthest reaches of the globe. The company also makes processed foods such as salsas, tapenades and marinated artichokes.
A joint venture established more than two decades ago with Dan¬¬ish and Peruvian capital (hence the name), Danper employs more than 6,500 people and is on track to keep growing. With a $20.7 million loan from IDB Invest, the company plans to continue expanding its agricultural production and improving its industrial processes and infrastructure, with an emphasis on saving water and energy.
Danper implements optimal agricultural practices and minimizes water consumption and the use of fertilizers. It is working on sustainable water basin management and has been certified for meeting Alliance for Water Stewardship standards.
This was our second loan to Danper. In 2014, we provided a 10-year, $38.5 million loan to help the company add more asparagus and avocado plantations, upgrade industrial facilities and strengthen its financial structure. Along with financial support, the IDB Group provided technical assistance, including energy efficiency and social impact assessments and support in obtaining EDGE certification for gender equality.
Our financing will enable Danper to integrate more than 130 small- and medium-scale farming operations into the value chain and create more than 5,000 permanent or seasonal new jobs by 2020. That economic impact and the company’s strong social and environmental performance add up to a positive contribution to development.
The objective of the loan is to support the growth and competitiveness of Danper Trujillo S.A.C. (“Danper” or the “Company”), a leading private company in the agribusiness sector located in Trujillo, in northern Peru. The Company has been a client of the IDB Group since 2014 and is engaged in the production, processing, and export of asparagus, artichokes, peppers, mangos, grapes, avocados, and blueberries. Danper has embarked on a US$41 million multiyear (2017-2019) investment plan that can be grouped in three categories: (i) investments to increase agricultural production; (ii) investments to improve industrial facilities and install two processing plants; and (iii) working capital financing related to the investments (collectively called the “Project”). Financing from the Inter-American Investment Corporation (IIC) in the amount of US$20.7 million will be supplemented by cash generation contributed by the Company (US$13.5 million) and other financing (US$7 million). The proposed IIC loan for US$20.7 million will have a term of 10 years and a grace period of 30 months.