Copeval is a Chilean agricultural inputs distributor reaching more than 37,000 farmers through its 24 stores and distribution centers, strategically distributed across the country’s agricultural regions.

The proposed investment consists of a subscription of securitized senior notes for up to US$25 million in Chilean Peso equivalent to finance Copeval’s working capital and secure liquidity in the midst of the COVID-19 pandemic.

UPDATE RELATED TO ADDITIONAL INVESTMENT UNDER COVID-19 RESPONSE FACILITY:

E&S Performance and COVID-19 related Impacts:

The company’s E&S performance was satisfactory at appraisal and was found to be satisfactory after the last site supervision visit (SSV) in July 2018. This performance is aligned with GIIP and is materially compliant with applicable at-approval requirements under the active investment. This follow-on investment, under the COVID-19 response facility, does not result in any new material E&S risks. The company’s management of existing E&S risks and impacts other than those described in the ESRS disclosed per above on 03/22/2013 continues.

Copeval has successfully completed all corrective actions outlined in the 2013 environmental and social plan (ESAP) in 2019. Copeval has enhanced its OHS management practices and performance, including improvement of Lost Time Injury Frequency Rate (LTIFR) over the past 2 year from 35.15 to 11.45 injuries per million hours worked (reference US 2013 value for the sector is 9.5) and that is stopped distributing WHO Class Ia and Ib products and achieved the final disposal of its remaining stocks. Copeval has also undertaken a retrenchment process for approximately 9% of its workforce over the past 2 years due to a business restructuring process, which has been implemented according to PS2 requirements. The virtual appraisal completed by IFC did not identify any new material E&S risks and impacts due to COVID-19 that cannot mitigated under existing ESRS and ESAP.

Scope of IFC’s Appraisal:

IFC’s E&S virtual appraisal covered the review of latest information provided by Copeval on its EHS/HR management practices regarding the environment, occupational health and safety (OHS), human resources based on a detailed E&S questionnaire as well as virtual meetings and interviews. Document review included, among others: updated management programs and procedures, external OHS management system audits, certifications to international management systems (e.g. ISO 9001 and OHSAS 18001).  The review also took into account  Copeval’s E&S performance since the SSV, undertaken in July 2019. After COVID-19 related travel restrictions are lifted, IFC will visit the client, as part of the regular portfolio monitoring activities.

Response to COVID-19 Pandemic:

Copeval created a Contingency Committee for identifying and implementing measure to reduce risks associated with COVID-19. These measures resulted from a risk assessment exercise of their operations. Workers belonging to high-risk groups (i.e. 65 years and older, workers with chronic diseases) have been requested to stay at home while receiving their full salaries. All workers are screened at the start of their shift and asked to stay home if they have any of the described symptoms. There has not been layoff, and the company does not expect them in the near future. Administrative staff has the option to work remotely and the company has developed new protocols and procedures to minimize risks for exposure to workers, such as: daily cleaning and disinfection, facility access protocols, personal protective equipment, and social distance. Management communicates on a regular basis with all its employees via the available internal channels (i.e. intranet, e-mail) and external channels. Copeval’s existing HR/OHS policies and measures as well as the COVID-19 measures ensure ongoing compliance with IFC. PS2: Labor and Working Conditions and PS4: Community Health Safety and Security. As a condition of this follow-on investment, Copeval will ensure ongoing compliance with IFC Performance Standards – especially provisions under PS2 and PS4.