Lima, July 27, 2006
-The International Finance Corporation, the private sector arm of the World Bank Group, has approved $15 million to Sociedad Agrícola Drokasa S.A., or Agrokasa, the leading producer, packer, and exporter of fresh asparagus and table grapes in Peru. IFC’s financing will help the company expand its operations.
IFC’s investments will allow the company to refurbish and upgrade its new farm in Barranca. This loan will support Agrokasa to increase its revenues from asparagus exports and build on its nascent production of avocados, while continuing to diversify its markets. Agrokasa focuses exclusively on premium export markets in 28 countries across five continents.
Atul Mehta, IFC’s Director for Latin America and the Caribbean, said, “IFC is pleased to continue supporting the expansion of a leading, export-oriented local agribusiness company. This financing fits well with IFC’s strategy in Peru to strengthen the competitiveness of local companies that contribute significantly to job creation and the economy.”
Jean-Paul Pinard, IFC’s Agribusiness Director, commented, “This project will generate crucial rural employment in Peru, where more than 50 percent of the population lives in poverty, primarily in rural areas.”
Jose Chlimper, CEO of Agrokasa added, “Working with IFC is not only about financing, but also about becoming a better company. With IFC’s advice, we can focus more on the social and environmental aspects of our operations, thus becoming a more sustainable company. We are very pleased about this third operation with IFC.”
Agrokasa is a subsidiary of Corporación Drokasa, a holding company that owns the largest pharmaceuticals marketing and manufacturing operation in Peru and that holds leading positions in consumer health products, agrochemicals, cosmetics, and toiletries.
IFC has a long-standing relationship with Corporación Drokasa through two prior investments. In 1999, IFC made a $6 million loan to Agrokasa to develop its high-value horticulture operation. In 2005, IFC partially guaranteed a corporate bond that was jointly issued by Corporación Drokasa and several of its subsidiaries. IFC’s guarantee helped raise the credit rating of the issuance.
IFC in Peru
IFC’s total portfolio in Peru was $213 million as of June 2005. IFC’s main focus in the country is to support sustainable private sector development in the agribusiness, warehousing, education, tourism, and financial sectors. Since Peru joined IFC in 1956, the Corporation has provided $898 million, including syndications, for 46 companies operating in the country.
About IFC
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
