Regional: Louis Dreyfus COVID-19 Climate-Resilient Smallholder Farmer Recovery Project

Nonsovereign Project | 53298-001

Senior unsecured 3-year USD bullet loan of $100 million to finance LDC's working capital needs in Asia for the sustainable procurement of coffee, cotton, and rice. The transaction will preserve the livelihood and climate resilience of [60,000] smallholder farmers affected by COVID-19 in the five project countries. A complementing TA (funded by trust funds) will establish 80 farmer groups and train 160 farmer group educators with an aim to help farmers obtain sustainability certifications.

Project Details

  • Project Officer
    Jeong, Juhyun

    Request for information
  • Approval Date
    13 December 2021
  • Country/Economy
    Regional
  • Sector
    • Agriculture, natural resources and rural development
Project Name Louis Dreyfus COVID-19 Climate-Resilient Smallholder Farmer Recovery Project
Project Number 53298-001
Borrower / Company Louis Dreyfus Company Asia Private Limited
Louis Dreyfus Company B.V.
Country / Economy Regional
India
Indonesia
Pakistan
Thailand
Viet Nam
Location India - Nation-wide; Indonesia - Nation-wide; Pakistan - Nation-wide; Thailand - Nation-wide; Viet Nam - Nation-wide
Type or Modality of Assistance
Loan Ordinary capital resources USD 100.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Jeong, Juhyun
Project Sponsor(s)
Description Senior unsecured 3-year USD bullet loan of $100 million to finance LDC's working capital needs in Asia for the sustainable procurement of coffee, cotton, and rice. The transaction will preserve the livelihood and climate resilience of [60,000] smallholder farmers affected by COVID-19 in the five project countries. A complementing TA (funded by trust funds) will establish 80 farmer groups and train 160 farmer group educators with an aim to help farmers obtain sustainability certifications.
Objectives and Scope Smallholder farmers in the project countries, who are already vulnerable to climate change, have been further impacted by the coronavirus disease (COVID-19) pandemic and ensuing economic slowdown. LDC, as a sustainable buyer of agricultural projects, supports the livelihoods and climate-adaptive capacity of farmers by providing reliable incomes. The project will assist LDC to maintain its operations in the project countries by funding inventories of coffee, cotton, and rice procured from more than 50,000 farmers in the project countries throughout the COVID-19 pandemic. The attached TA will expand the scope of the extension services already provided by LDC and its affiliates to cotton farmers in India and coffee farmers in Indonesia.
Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2030's operational plans for priority 1 (addressing remaining poverty and reducing inequalities) by preserving the livelihoods of smallholder farmers during the COVID-19 pandemic; priority 2 (accelerating progress in gender equality) through gender interventions targeted at women workers and farmers; priority 3 (tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability) by promoting the climate resilience of farmers; and priority 5 (promoting rural development and food security), which calls for the integration of farmers, agribusinesses, and consumers into efficient and sustainable value chains. As a regional project, it is consistent with the operational plan for priority 7 (fostering regional cooperation and integration) as it supports nonsovereign lending for cross-border operations for agriculture value chains. The project is consistent with ADB's country partnership strategies for India, Indonesia, Pakistan, Thailand, and Viet Nam.
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) as category C for environment.
Involuntary Resettlement ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) as category C for involuntary resettlement.
Indigenous Peoples ADB has categorized the investment in compliance with ADB's Safeguard Policy Statement (2009) as category C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 13 Dec 2021
Last PDS Update 13 Dec 2021

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Related Publications

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