35.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	35.0
Equity

* These investment figures are indicative

Stakeholders - Access and Quality. The project will allow the continuity to the operation of Valparaiso’s Terminal 2 under a short-term concession, thus maintaining access and quality to port users. To maintain the terminal level of service the client has committed to purchase equipment to support vessel and land side operations for both containerized and general cargo. The project will also allow the company to continue growing its logistics services portfolio (warehousing, labelling, consolidation and deconsolidation of containers, pallets dismantling/assembly, temperature-controlled storage), which was up 8% in YoY basis, and to consider the potential expansion of its geographic footprint outside of Chile. Market Level - Competitiveness. The Project will contribute to maintaining market competitiveness by supporting a key player introducing innovative services and practices into Chile’s logistics sector. Agunsa is implementing technology solutions like a virtual trucking services exchange portal that contributes to improve asset utilization which results in lower vehicle operating costs per unit of cargo transported and can potentially result in lower costs to customers. In addition, the platform’s real time pricing increases price transparency for customers. The platform also increases reliability of trucking services by offering tracking cargo capabilities which adds visibility to the logistics chain. By demonstrating the business case of this innovative services, the project is expected to promote the development of a more sophisticated sector and effectively contribute to economic distance between Chile and its commercial partners. Logistics competitiveness is an important driver of economic growth in Chile and accounts for 11.5% of its GDP (2020). Market Level - Financial Integration. The Project will pioneer the use of a sustainability-linked loan (SLL) in the logistics services sector in Chile, contributing to their increased adoption and helping draw ESG investors to the sector. Agunsa’s pioneering SLL will contribute to market development by demonstrating the viability of this instrument for a company of its size and by providing a model for structuring similar loans in the Chilean market. Replicating the SLL would allow mid-size companies to tap into the demand for assets that have a positive environmental impact, in order to diversify sources of financing.

Financial Additionality. Innovative financing structure. IFC is developing a Sustainability-Linked Loan structure for this transaction. IFC will guide the client developing the corporate framework/procedures necessary to enable the SLL. This structure would introduce an innovative financing alternative into the client’s portfolio that can be replicated to obtain future financing with lenders in the domestic market, and for Agunsa to eventually become a capital markets issuer. IFC long-term financing is a solution to consolidate short-term debt currently distributed across multiple financing institutions. Similar financing solutions with the proposed tenor are scarce in the domestic market, particularly for mid-sized corporates and for companies in the logistics sector that are heavily exposed to the effects of the Covid pandemic. Non-Financial Additionality Standard setting. IFC will provide support and guidance to help strengthen the Company’s capacity to manage environmental and social (“E&S”) risks associated with the Project through the implementation of IFC Performance Standards.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The E&S risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures as described in this document and the attached Environmental and Social Action Plan (ESAP).

AGUNSA’s corporate management system, policies and procedures should ensure that Environmental, Social, Health and Safety (ESHS) risks and impacts are properly assessed and that corresponding controls are in place at the corporate level to inform the E&S management of each business line. The key E&S risks associated with AGUNSA are related to the adequacy of internal procedures to screen E&S risks and impacts; general OHS management; pollution prevention and control; labor management, including terms of employment, nondiscrimination and gender-related issues at the workplace; contractor EHS management, relations with workforce, grievance mechanism; community safety; and stakeholder engagement. 

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.