AGRONOMIKA FINANCE CORPORATION (FMO-50231)

Countries
  • Philippines
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
C
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
Dec 21, 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
Agronomika
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 Amount (USD)
$ 2.00 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)
$ 2.00 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 @ FMO website

Updated in EWS Jun 26, 2018

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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.

Agronomika, a newly established agri-finance company that focuses on providing loans to smallholder cocoa farmers in the Philippines. Agronomika is part of Kennemer Foods, a Philippine company that sources and exports cocoa beans and that has a unique business model that supports smallholder farmers to set up their own cocoa farms. Kennemer Foods has created an end-to-end contract farming model that provides farmers with high quality planting material and technology, training on farming practices, and access to financing and markets. In just five years of operations, Kennemer has achieved significant scale, establishing a sourcing network of 10,000 Philippine farmers who stand to gain a sizeable increase in income when they invest in cocoa. By adopting modern technology, farmers can experience cocoa yields of four times the national average.

Agronomika will receive a blended farmer finance facility, that consists of a long term loan from FMO (Massif-fund) which is supported by a first loss guarantee of IDH. Both FMO and IDH support Kennemer's operations with technical assistance whereby IDH's focus is on the farmer engagement model and FMO's support is aimed at improving governance and risk management of Agronomika. The blended farmer finance facility will be utilized to provide microloans to farmers for long term investments in their cocoa farms. The facility is structured under the Smallholder Finance Facility, the cooperation between FMO and IDH (http://smallholder.finance/).

Via facility smallholder farmers in rural Philippines will gain access to finance for investments in their cocoa farms, which offers an opportunity to improve their livelihoods significantly.

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.

http://www.kennemerfoods.com/contact/

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works