LAAD IV (IFC-37802)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 5, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Latin American Agribusiness Development Corp S.a
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • 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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 30, 2018

Disclosed by Bank Jun 9, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC website, the investment consists of long-term loan to Latin American Agribusiness Development Corporation S.A. (LAAD) and its fully owned subsidiary LAAD Americas N.V. to support growth of its portfolio of medium and long-term loans to agribusiness SMEs in Latin America and the Caribbean. This project is expected to have development impact in the following areas: 

(i) Support access to finance to agricultural SMEs, mostly of these family-owned businesses, which have traditionally been underserved due to high perceived risks;
(ii) Positive impact on rural communities in the region; in FY15 LAAD supported 291 projects in 14 countries which created over 9,000 new jobs; and
(iii) Support to a unique and very successful business model which has consistently grown in a financially and developmentally sustainable way.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

(i) Support access to finance to agricultural SMEs, mostly of these family-owned businesses, which have traditionally been underserved due to high perceived risks;
(ii) Positive impact on rural communities in the region; in FY15 LAAD supported 291 projects in 14 countries which created over 9,000 new jobs; and
(iii) Support to a unique and very successful business model which has consistently grown in a financially and developmentally sustainable way.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed IFC investment consists of an IFC A Loan for up to US$50 million.

Financial Intermediary
A financial intermediary is a 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.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Latin American Agribusiness Development Corporation S.A. (LAAD) , an IFC investee company and portfolio client, is a non-bank financial institution specialized in lending to agribusiness SMEs in LAC. LAAD was incorporated in 1969 by a number of major multinational companies engaged in the agribusiness supply chain and financial services with the goal to increase prosperity among rural communities in the region.

LAAD’s shareholders include Monsanto, Cargill, Rabobank, Bank of America, Deere & Company, DEG, Dole, Nestle, Goodyear, JP Morgan, Unilever and IFC, all with equal shares (8.33%).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Latin American Agribusiness Development Corporation S.A.
Office Address: 2800 Ponce de Leon Blvd, Suite 1200, Coral Gables, FL 33134
Telephone No.: (305) 445-1341
Fax No.: (305) 446-8447
Email Address: mailto:laad@laadsa.com
Website: http://www.laadsa.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works