Banco Regional Agribusiness Financing Partnership (IDBI-12416-01)

Countries
  • Paraguay
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 23, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Banco Regional S.A.E.C.A.
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 23, 2018

Disclosed by Bank Sep 14, 2018


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Project Description

According to the project, the proposed operation contemplates a Senior Unsecured Loan to Banco Regional S.A.E.C.A. ("Regional") of up to US$ 50million (the "Loan") to be financed by BID Invest. The Loan will be comprised of two tranches: (i) Tranche I: for an amount of up to US$12 million for a term of seven years, and (ii) Tranche II: for an amount up to US$38 million for a term of five years. The funds of the Loan will be used to finance sub-projects in companies within these sectors: agriculture, livestock, and agribusiness. The Project will include a Technical Assistance ("TA") that will help Regional identify and monitor the financing of green lending opportunities that fall within emerging climate smart agriculture criteria.

People Affected By This Project

Task

Description

Deadline

Update of ESMS

ESMS to be updated to include: (i) formal incorporation of the guides as policy requirements; and (ii) inclusion of categorization and analysis templates. Formal sign off by senior management.

Condition precedent to first disbursement

Updated use of satellite imagery

(i) Establishment of a process to receive periodic (e.g. monthly) satellite imagery on illegal deforestation in the Atlantic Region, and screen against portfolio client coordinates; and (ii) request and analyze satellite imagery from all clients under which the livestock and agriculture guides apply.

(i) Periodic; and (ii) Six months post dispersement

Client engagement

Update legal templates for inclusion of corrective action plans where issues are identified with sub-borrowers; continue client visits to assess E&S risks and engage clients on E&S issues.

Within loan agreements with sub-borrowers

Performance Reports to Senior Management

Provide periodic reporting to senior management on client E&S analysis (% analized, % visited, % with satellite analysis, key findings/recommendations, # clients rejected on E&S grounds, etc.

Periodic

Green Loan Portfolio Analysis

Regional will undertake along with the assistance of a consultant portfolio analysis and/or engagement activities with its clients in the effort to identify, shape and manage green lending opportunities that fall within emerging climate smart-agriculture criteria. Regional will co-finance the cost of the consultant alongside IDB Invest.

Starting 2019

Investment Description
  • IDB Invest
Private Actors
Contact Information

Client Contact name: Maria Fernanda Carron
Position: Correspondent and Foreign Trade Manager
Phone number: (595 21) 6194908
email address:
maria.carron@regional.com.py

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 divulgacionpublica@iadb.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.