DEG finances Peruvian agricultural business
Press Release from 2018-11-02 / DEG
DEG is providing the agricultural company Agricola Pampa Baja S.A.C. with a long-term loan of USD 20m.
Peru is one of Latin America’s emerging economies. Its economy is growing steadily, with the agricultural sector being one of the fastest developing sectors of the economy. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is now providing the agricultural company Agricola Pampa Baja S.A.C. (Pampa Baja) with a long-term loan of USD 20m, which will be used mainly for growth investments. Other investors are the Dutch development bank FMO and IDB – Inter-American Investment Corporation.
New location to increase production
Pampa Baja is a family-run company that produces and markets fruits, vegetables and milk. With the financing provided, Pampa Baja will expand its cultivated areas for vegetables and establish a production site in the Olmos region of northern Peru.
“With its financing and advisory services, DEG enables private companies to grow in a developmentally effective way. It is our pleasure to accompany Pampa Baja on this path", said Monika Beck, member of DEG's Management Board, on the occasion of the signing of the contract.
“We are delighted to share with DEG our vision and passion for the agricultural business and also the confidence in a promising future", said Octavio Paredes y Del Carpio, President and Founder of Pampa Baja.
Expansion creates 1.500 more jobs
The company currently employs around 2,200 permanent and seasonal workers, reaching up to 3,700 workers after the expansion. The company also offers its seasonal workers numerous fringe benefits such as transport, meals and health insurance. Like all companies financed by DEG, Pampa Baja is required to comply with international environmental, social and corporate governance standards. DEG is committed to supporting Pampa Baja actively in their implementation.
In addition to contributing to local income in the form of wages, salaries and taxes, the construction of the new site also gives a boost to the local economy in northern Peru.
DEG has been active in Peru for a long time and also has a representative office for the Andean region there since 2007. Further DEG locations in Latin America are in Mexico and Brazil. In 2017 DEG additionally opened a “German Desk” in Lima, which serves as a central point of contact for German and local companies that wish to start business in Peru or expand their activities.