Agrofertil is fully owned by the Sarabia family, whose members have more than 15 years of experience in the agribusiness sector in Paraguay.

The total Project cost is estimated at $25 million. The proposed IFC investment consists of an A-Loan of up to $15 million for IFC’s own account and a B- Loan of up to $10 million, subject to market appetite.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The Company is headquartered in Ciudad del Este, Paraguay. The Company has 9 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 (likely to include a significant share in BOP), (ii) supporting the dissemination of agricultural best practices and inputs to farmers, (iii) generating tax income for the Government, and (iv) employment.

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.

Specific key environmental and social issues are listed below:

Environmental and social management systems and technical capacity for its implementation, monitoring and reporting;
Compliance with local permits and licenses including product registration; operation of distribution centers and silos; and transportation of agrochemicals;
Handling, storage, distribution and transportation of hazardous materials;
Emergency response;
Labor and working conditions, including occupational health and safety;
Pest control management strategy and professional guidance to the clients in the use of the products distributed;
Biodiversity protection in reference to potential deforestation, and the distribution of seeds; and
Relations with the community.

Potential adverse effects arising from these issues are limited; site specific and may readily be addressed through mitigation measures. On This basis, this investment is therefore a category B project according to IFC’s Environmental and Social Review Procedures.