In a strategic move to bolster Peru's agro-export sector, IDB Invest is injecting $10 million in financing with a flexible term of up to seven years into Pura Fruit, a leading producer and exporter of table grapes in Peru. This partnership is poised to transform Pura Fruit's operations, enhancing both
its capacity and efficiency.
The collaboration between IDB Invest and Pura Fruit aims to provide substantial support for the latter's ambitious growth strategy. Pura Fruit intends to expand its agricultural footprint by adding 150 new hectares dedicated to table grape cultivation, while simultaneously boosting water storage capacity and implementing plant covers. These enhancements are projected to catapult Pura Fruit's annual production to a staggering 30,000 tons by 2025, nearly tripling its 2021 output.
These investments are not only set to drive productivity but also foster job creation, including permanent and temporary positions, particularly in the northern regions of Peru.
Commitment to Sustainability
Beyond financing, IDB Invest is committed to ensuring sustainability within Pura Fruit's corporate strategy. The collaboration includes technical advisory services to facilitate the development of a comprehensive sustainability plan at the corporate level. This plan involves a meticulous analysis of the company's operations, culminating in the formulation of an action plan complete with vital metrics and ambitious goals. Furthermore, specialized training will be offered to ensure a gender and diversity-inclusive approach.
In tandem, an Environmental and Social Action Plan will be implemented, emphasizing measures to preserve biodiversity and manage the engagement of social stakeholders, among other critical aspects.
Contributing to Sustainable Development Goals (SDGs)
The impact of this collaboration transcends business growth, aligning with United Nations Sustainable Development Goals (SDGs). It is expected to make significant contributions to:
SDG 8: Decent Work and Economic Growth: By creating employment opportunities and stimulating economic growth.
SDG 12: Responsible Consumption and Production: Through sustainable agricultural practices.
SDG 17: Partnerships for the Goals: Exhibited through the collaborative effort between IDB Invest and Pura Fruit.
IDB Invest's Vision for the Future
In parallel, IDB Invest is preparing for a transformative future. The multilateral lender, under the leadership of CEO James Scriven, is actively working on negotiations with its 47 member countries to secure approval for a capital increase. This ambitious move is set to double the institution's size and, in turn, catalyze private sector investments across the region.
The capital increase, anticipated to receive approval during the IDB's annual meeting in March, signifies a monumental step towards IDB Invest's mission to facilitate a surge in financing deals. James Scriven envisions a 200% increase in the number of financing deals once the capital increase is realized, elevating the institution's role from an investor to a catalyst of investments.
As part of this transformation, IDB Invest intends to introduce innovative financial instruments and leverage its balance sheet to drive pioneering solutions. The goal is to attract foreign direct investment (FDI) while minimizing risks—a crucial element in facilitating regional economic growth.
Pioneering Financial Solutions
IDB Invest's repertoire of innovative financial instruments includes B-bonds, which entice institutional investors into financing deals. Additionally, the institution has championed unfunded credit protections, tier-2 instruments, mezzanine financing, and local-currency guarantees. Key sectors targeted for financing include energy infrastructure, roads, airports, social infrastructure, water and sanitation, agribusiness, critical minerals for the energy transition, and the burgeoning green hydrogen sector.
IDB Invest's expanding role as a risk mitigator and investment catalyst underscores its commitment to shaping a more prosperous and sustainable future for the region. As appetite for such innovative financial solutions continues to grow, IDB Invest stands as a beacon of progress in Latin America and the Caribbean's economic landscape.
[Information sourced from IDB Invest and LatinFinance]