Banco Regional Agribusiness Financing Partnership (IDBI-12416-01)

Countries
  • Paraguay
Geographic location 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
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
Oct 23, 2018
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
Banco Regional S.A.E.C.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • 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.
Project Cost (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.
Campaign Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 23, 2018

Disclosed by Bank Sep 14, 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.

According to the project, the proposed operation contemplates a Senior Unsecured Loan to Banco Regional S.A.E.C.A. ("Regional") of up to US$ 50million (the "Loan") to be financed by BID Invest. The Loan will be comprised of two tranches: (i) Tranche I: for an amount of up to US$12 million for a term of seven years, and (ii) Tranche II: for an amount up to US$38 million for a term of five years. The funds of the Loan will be used to finance sub-projects in companies within these sectors: agriculture, livestock, and agribusiness. The Project will include a Technical Assistance ("TA") that will help Regional identify and monitor the financing of green lending opportunities that fall within emerging climate smart agriculture criteria.

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.

Task

Description

Deadline

Update of ESMS

ESMS to be updated to include: (i) formal incorporation of the guides as policy requirements; and (ii) inclusion of categorization and analysis templates. Formal sign off by senior management.

Condition precedent to first disbursement

Updated use of satellite imagery

(i) Establishment of a process to receive periodic (e.g. monthly) satellite imagery on illegal deforestation in the Atlantic Region, and screen against portfolio client coordinates; and (ii) request and analyze satellite imagery from all clients under which the livestock and agriculture guides apply.

(i) Periodic; and (ii) Six months post dispersement

Client engagement

Update legal templates for inclusion of corrective action plans where issues are identified with sub-borrowers; continue client visits to assess E&S risks and engage clients on E&S issues.

Within loan agreements with sub-borrowers

Performance Reports to Senior Management

Provide periodic reporting to senior management on client E&S analysis (% analized, % visited, % with satellite analysis, key findings/recommendations, # clients rejected on E&S grounds, etc.

Periodic

Green Loan Portfolio Analysis

Regional will undertake along with the assistance of a consultant portfolio analysis and/or engagement activities with its clients in the effort to identify, shape and manage green lending opportunities that fall within emerging climate smart-agriculture criteria. Regional will co-finance the cost of the consultant alongside IDB Invest.

Starting 2019

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

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.

Client Contact name: Maria Fernanda Carron
Position: Correspondent and Foreign Trade Manager
Phone number: (595 21) 6194908
email address:
maria.carron@regional.com.py

For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email divulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org, or calling +1(202) 623-3952.

How it works

How it works