Company name

Desdelsur S.A.

Project number

12506-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Argentina

Sector

Agribusiness

Status

In implementation

Disclosed date

02/07/2019

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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03/15/2019

Approval date

03/15/2019

Signed date

03/22/2019

Sponsoring entity

N/A

Team leader

Pereyra Giudice, Francisco

Investment type

Financing requested

N/A

Syndicated amount

USD $ 15,000,000

Financing amount

USD $ 15,000,000

Currency

USD

Project scope and objective

The proposed financing consists of an A/B loan in favor of Desdelsur S.A. for up to US$ 30.0 million with a 7-year term (5 years, in the case of Loan B), with two years’ grace and a collateral guarantee acceptable to IDB Invest. The A/B loan will be distributed in equal amounts between IDB Invest and Lender B for the purpose of financing: (I) US$ 11.2 million of Desdelsur’s growth capital investment (livestock and industrial) for 2018 and 2019 and to finance a consultancy for the design and implementation of the mandatory corporate governance action plan included in the Loan Agreement; (ii) US$ 8.8 million in permanent working capital to cover the structural needs increase of Desdelsur’s business cycle; and (iii) US$ 10.0 million for the refinancing of commercial bank loans whose funds were allocated to capital investments for DDS's agro-livestock activities during 2018 (the “Project”).



Desdelsur S.A. is the main pulse production, processing and export company in Argentina, with 6.6% of the national market share, and one of the largest producers of steers for export to Northeast Argentina. The company was founded in 1986 by José Macera, current stockholder and CEO, for the sale of grains, oils and other agricultural products. In 1990, Desdelsur ventured into the production of pulses, starting a period of capital investments for the purchase of estates, machinery, and the construction of the first processing plant in Salta. In 2005, as part of its vertical integration activities, the company created the livestock division, which focuses on pasture rearing and feedlot fattening to leverage the corn resulting from the agronomic management of the land dedicated to pulses.


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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

86.2 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

DESDELSUR-ENVIRONMENTAL AND SOCIAL ACTION PLAN.PDF

138.7 Kb

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

N/A

POSITION

N/A

PHONE NUMBER

+54 938 7359 3100

EMAIL

gracielalena@desdelsur.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices