WCSS Agricover (IFC-39197)

Countries
  • Romania
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
May 4, 2017
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
Agricover Credit IFN SA
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)
$ 16.88 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)
$ 16.88 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 Aug 1, 2018

Disclosed by Bank Feb 23, 2017

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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 project consists of an investment of up to RON70mn in the form of a 1-year, senior loan under IFC’s Working Capital Solutions (WCS) product to IFN to support the agriculture sector in Romania. The WCS loan is renewable up to two times at IFC’s option for two additional 1-year periods, for a maximum aggregate facility life of up to 3-years. The WCS loan will be disbursed in local currency to support the Company’s short term loans to small and medium enterprise (SME) farmers.

Specific positive developmental impacts are expected to be:
1. By directly financing the short-term needs of the Company to support the agribusiness sector, small and medium-sized farmers whom IFC cannot finance directly will have increased access to financing and, therefore, a positive impact on economic activity in Romania's agricultural regions.
2. By supporting IFN's portfolio expansion directed at SME farmers, IFC will aim to strengthen the value chain and increase capacity by allowing producers and processors to extend or have several production cycles through additional working capital. This will enable a better competitive position for the SME farmers in the local and regional markets.

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

IFN’s shareholders are Agricover Holding S.A. (99.99998%) and Agricover S.R.L. (0.00002%). Agricover Holding S.A. is the Group’s parent entity, which controls both IFN and Agricover S.R.L. (100%), a company focused solely on agri-business operations of the Group. The ultimate majority owner of the Group is Mr. Jabbar Kanani, a Romanian citizen of Iranian origin. Agricover Holding S.A. and its subsidiaries as outlined above are Mr. Kanani’s main assets.

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.

Agricover Credit IFN S.A.'s shareholders are Agricover Holding S.A. (99.99998%) and Agricover S.R.L. (0.00002%). Agricover Holding S.A. is the Group’s parent entity, which controls both IFN and Agricover S.R.L. (100%), a company focused solely on agri-business operations of the Group. The ultimate majority owner of the Group is Mr. Jabbar Kanani, a Romanian citizen of Iranian origin. Agricover Holding S.A. and its subsidiaries as outlined above are Mr. Kanani’s main assets.


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.

Project contact: Robert Rekkers
General Manager, Agricover Credit IFN S.A.
Email Address: Robert.Rekkers@agricover.ro
Office Address: Cubic Center Building, Bd. Pipera, nr. 1B, etaj 6, Voluntari, Ilfov, Romania
Website: http://agricover.ro/finantare/

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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/

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