LDC Brasil (IFC-44281)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
Mato Grosso, Goiás and Minas Gerais States
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Borrower
LOUIS DREYFUS COMPANY FINANCE B.V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
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)
$ 200.00 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.
Project Cost (USD)
$ 200.00 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 May 12, 2022

Disclosed by Bank May 4, 2022


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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.

 The proposed IFC investment is to support Louis Dreyfus Company Brasil S.A. (“LDC Brazil” or the “Company”), in purchasing crops from eligible farmers committed to zero deforestation or conversion of natural habitat (“the Project”). This investment will be utilized for the sourcing of an estimated 500,000 MT of soy or corn from pre-financed direct suppliers and farmers on the spot market that comply with LDC’s supply chain and this investment requirements. IFC funds will not be used for indirect purchases (i.e., via middlemen/aggregators). Total estimated soybean/corn production is largely expected to come from approximatively 143,000 ha in Mato Grosso, Goiás and Minas Gerais states. The proposed financing package is of up to US$200 million to be comprised of (i) an A Loan in the amount of up to US$100 million; and (ii) a B Loan in the amount of up to US$100 million.  LDC Brazil soy/corn operations are located in the main production areas, away from the current principal frontiers of agricultural expansion that are causing natural habitat conversion. These include three crushing plants (Alto Araguaia, Mato Grosso with a daily crushing capacity of 3,000 MT; Ponta Grossa, Paraná with a daily crushing capacity of 3,000 MT; and Jataí, Goiás with a daily crushing capacity of 2,000 MT), a network of 31 warehouses, 7 processing plants, 5 port terminals and 2 waterway terminals. Soybeans and corn sourced under this proposed investment will be transported to these storage facilities. The proposed investment does not comprise expansion of existing assets and facilities.   LDC is a global merchant and processor of agricultural commodities, active in over 100 countries, employing approximately 17,000 people worldwide. The company reported consolidated net sales of over US$49 billion for the full year 2021. Its operations span six geographic regions, among these North Latin America (Brazil), where the company is present since 1942 and operates through its subsidiary LDC Brazil.                                                  

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

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.

ACCESS TO INFORMATION
You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries
If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.
ACCOUNTABILITY MECHANISM OF IFC/MIGA
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