Coagra Servicios Financieros S.A. (Coagra) provides financing in the form of financial leasing and factoring operations geared primarily to small and medium-sized enterprises in the agricultural sector. Coagra’s financial leasing operations provide financing for the acquisition of fixed assets for the agricultural sector, including tractors, packaging lines, and refrigeration equipment. The proposed project consists of a loan of up to US$2 million that will enable Coagra to offer financial leasing operations denominated in or indexed to the U.S. dollar.
Environmental and Labor Issues:
This is a category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy because the subprojects in the financial intermediary’s current or future portfolio are considered low risk. In order to improve the evaluation of the labor and environmental aspects of its operations, Coagra will be required to attend the IIC’s environmental training workshop for financial intermediaries and prepare a sustainable management system that includes a policy and procedures for analyzing its clients from an environmental standpoint. Eligible Enterprises financed with IIC funds will be subject to an environmental review and must comply with national environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. Coagra must also submit annual environmental reports to the IIC detailing its progress, as well as any difficulties encountered in implementing these practices.