Urapi SLU (IDBI-12951-01)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
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
B
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 2, 2020
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
Urapi Sustainable Land Use ("URAPI SLU")
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)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Oct 2, 2020


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

The transaction consists of a guarantee of up to US$5 million to support the second closure of Urapi SLU (the "Fund") until it reaches its target capitalization of US$50 million. The guarantee will be issued for a term of up to 15 years, matching the Fund's time horizon. The Fund has a regional mandate, with a focus on agroforestry projects.

The Fund was established to invest in projects to restore degraded lands. The Fund's investments are formalized through special-purpose vehicles created for each project in the different countries where it invests. The special purpose vehicles, which are 100% funded by Urapi SLU, offer (i) equity investments in infrastructure for processing raw materials; (ii) investments in carbon credit sale and issue infrastructure; and (iii) financing for small producers to invest in their farms, improve land-use, and increase productivity. IDB Invest's guarantee will partially cover the risk of nonpayment of this financing for the small producers.

Investment Description
Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Contact Information

Contact information For questions about projects, including environmental and social issues associated with an IDB Invest transaction, please contact the client (see Investment Summary) or IDB Invest through e-mail requestinformation@idbinvest.org. As a last resort, affected communities have access to IDB Invest’s Independent Consultation and Investigation Mechanism through mecanismo@iadb.org or MICI@iadb.org, or by calling +1(202) 623-3952.