Early Warning System

Countries

Argentina

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

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

Mar 15, 2019

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

Desdelsur S.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)

$ 30.00 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)

$ 30.00 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.

Bank Documents

Environmental and Social Action Plan

Primary Source

Original disclosure @ IDBI website

Updated in EWS Feb 18, 2019

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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 financing consists of an A/B loan in favor of Desdelsur S.A. for up to US$ 30.0 million with a 7-year term (5 years, in the case of Loan B), with two years' grace and a collateral guarantee acceptable to IDB Invest. The A/B loan will be distributed in equal amounts between IDB Invest and Lender B for the purpose of financing: (I) US$ 11.2 million of Desdelsur's growth capital investment (livestock and industrial) for 2018 and 2019 and to finance a consultancy for the design and implementation of the mandatory corporate governance action plan included in the Loan Agreement; (ii) US$ 8.8 million in permanent working capital to cover the structural needs increase of Desdelsur's business cycle; and (iii) US$ 10.0 million for the refinancing of commercial bank loans whose funds were allocated to capital investments for DDS's agro-livestock activities during 2018 (the "Project").

Desdelsur S.A. is the main pulse production, processing and export company in Argentina, with 6.6% of the national market share, and one of the largest producers of steers for export to Northeast Argentina. The company was founded in 1986 by Jose Macera, current stockholder and CEO, for the sale of grains, oils and other agricultural products. In 1990, Desdelsur ventured into the production of pulses, starting a period of capital investments for the purchase of estates, machinery, and the construction of the first processing plant in Salta. In 2005, as part of its vertical integration activities, the company created the livestock division, which focuses on pasture rearing and feedlot fattening to leverage the corn resulting from the agronomic management of the land dedicated to pulses.

Investment Description

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

IDB Invest (IDBI)

The proposed financing consists of an A/B loan in favor of Desdelsur S.A. for up to US$ 30.0 million with a 7-year term (5 years, in the case of Loan B), with two years’ grace and a collateral guarantee acceptable to IDB Invest. The A/B loan will be distributed in equal amounts between IDB Invest and Lender B for the purpose of financing: (I) US$ 11.2 million of Desdelsur’s growth capital investment (livestock and industrial) for 2018 and 2019 and to finance a consultancy for the design and implementation of the mandatory corporate governance action plan included in the Loan Agreement; (ii) US$ 8.8 million in permanent working capital to cover the structural needs increase of Desdelsur’s business cycle; and (iii) US$ 10.0 million for the refinancing of commercial bank loans whose funds were allocated to capital investments for DDS's agro-livestock activities during 2018 (the “Project”).

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Desdeelsur S.A.	Undisclosed	-

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.

Graciela Lena
Position: Director
Phone number: +54 938 7359 3100
Email:
gracielalena@desdelsur.com

For inquiries, comments and requests about the project: https://idbinvest.org/en/projects/desdelsur#