Agrofertil is fully owned by the Sarabia family, whose members have more than 20 years of experience in the agribusiness sector in Paraguay.

The total Project cost is estimated at $20 million. The proposed IFC investment consists of an up to $15 million A Loan renewable for up to 5 years, and an A Loan of up to US$5 million, both for IFC’s own account.

80.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	80.0
Equity

* These investment figures are indicative

The Company is headquartered in Ciudad del Este, Paraguay. The Company has 20 regional distribution centers located near the major crop regions of Paraguay.

The Project is expected to have a significant development impact by (i) reaching farmers operating in frontier regions, (ii) supporting the dissemination of agricultural best practices and inputs to farmers, (iii) generating tax income for the Government, (iv) employment, (v) demonstration effect supporting a sustainable operation in Paraguay.

Through this project, IFC will be enhancing Agrofertil''s capacity to provide pre-harvest financing to farmers and will contribute to the further development of agriculture sector, a key pillar of Paraguay''s economy.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Sustainable Management of living natural resources(%)	Sustainable Management of living natural resources(%)		Not Available	Not Available	Not Available

This is a category B project in accordance with IFC’s Policy on Environment and Social (E&S) Sustainability. Based on information reviewed by IFC, this investment will have limited adverse E&S impacts that are few in number, site-specific, and largely reversible and readily addressed through mitigation measures, as outlined in this review summary. The key E&S issues include: (i) Agrofertil’s capacity to provide systematic and consistent management of E&S issues across its operations; (ii) compliance with local permits and licenses for operation, transportation and distribution of products and services; (iii) handling, storage, distribution and transportation of hazardous materials, (iv) compliance of the portfolio of products with WHO hazards class (e.g. exclusion of Ia and Ib products) and FAO’s International Code of conduct on the distribution and use of Pesticides; (v) pest control management strategy and professional guidance to the clients in the use of the products distributed; (vi) labor and working conditions, including occupational health and safety; and (vii) Agrofertil’s internal process to ensure that any new clients or those existing clients expanding their land usage don’t source any crops for repayment to Agrofertil in critical and/or natural habitat areas of the country, as to comply with IFC PS 6 supply chain requirements.
Issues related to PS5: Land Acquisition and Involuntary Resettlement, PS7: Indigenous Peoples, and PS8: Cultural Heritage were not identified, as Agrofertil’s distribution centers are located in industrial zones or rural centers; and have all received the approval of the Paraguayan authorities.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.