Agrocorp Corporate Loan (IFC-45872)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bangladesh
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
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."
Voting Date
Jun 28, 2022
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
AGROCORP INTERNATIONAL PTE LTD
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)
$ 18.00 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)
$ 18.00 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)
$ 32.50 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
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 20, 2022

Disclosed by Bank May 26, 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.

According to IFC, the proposed investment is a corporate loan of up to US$15 million to Agrocorp International Pte Ltd (Agrocorp or the “Company”). The proceeds will be used specifically towards supporting existing flows of wheat and pulses from Canada and Australia to Bangladesh which are processed at Agrocorp’s facilities. This investment will support food security in Bangladesh in light of higher staple agri-commodity prices (particularly wheat) caused by supply shocks from the Ukraine war.

Bangladesh is a large net importer of wheat and pulses, and Canada is a key origin from which Bangladesh buys over US$1 billion per year.

Pulse cleaning process starts with a screen cleaner and aspirator to take out coarse and fine impurities, and dust. Then a de-stoner is used to take-out high-density impurities. Sorting of pulses are based on size, density, and color. All grain/pulses shall meet the quality standards and grades, such as the Canadian Grain Commission. All APC and APA facilities are fully automated. As a dry mechanical process, grain and pulse mills require limited raw water inputs. Solid waste generated from the cleaning process is used as feed for livestock, agricultural inputs (fertilizer), and feedstock (biomass) for energy production.    

 This is a Category B project based on IFC’s 2012 Policy on Environmental and Social Sustainability.                                            

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

The total project cost is estimated at USD 32.5 million. USD 18 million will be provided via an own account A loan with the remaining USD 14.5 million coming from the International Development Association’s Private Sector Window Blended Finance Facility (IDA-PSW-BFF).

Private Actor Relationship
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.

Agrocorp is incorporated in Singapore as a private limited company. The company is wholly owned by the founders, Vijay Iyengar, Akila Vijay and Ravi Raghavan.

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.

Agrocorp is an agro-commodity trader with its headquarters based in Singapore (https://agrocorp.com.sg/). Established in 1990, Agrocorp is active in 50 countries. Originally an agricultural commodities trader, including sourcing 30 agro-commodities in 17 key origins, such as pulses, pea protein, legumes, wheat, sugar, rice, raw cashew nut, grains, oilseeds, and cotton, Agrocorp has been expanding its midstream operations in Australia, Canada, Myanmar and the US. It now owns 10 processing plants/elevators, including four pulses and wheat processing facilities in Canada (Agrocorp Processing Canada – APC - https://agrocorp.com.sg/processing/) and three grain and seed processing plants in Australia (Agrocorp Australia – APA - https://associatedgrain.com.au/).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Agrocorp International Pte Ltd Client -

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.

Agrocorp International Pte Ltd
Vishal Vijay
Director of New Business & Strategic Investments
+65 6534 4878
vishal@agrocorp.com.sg
-
agrocorp.com.sg

ACCESS TO INFORMATION

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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

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