Press Release from 2022-05-16 / DEG
DEG finances sustainable pineapple production
USD 8 million loan for Hacienda Ojo de Agua S.A.
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is making available a long-term loan of USD 8 million to medium-sized family business Hacienda Ojo de Agua S.A. (Hoda). This financing will enable the company to further modernise its core business – pineapple cultivation. The company’s production practices have been certified as sustainable in social, economic and ecological terms by various organisations.
The family business, based in San José, was established in 1951 and actually farms pineapples at two locations in Costa Rica. The fruit is primarily exported to the USA and Europe. It is largely sold as fresh fruit or processed into juice or dried fruit. DEG financed the company’s expansion investments back in 2012.
Financing set to safeguard around 800 jobs in Costa Rica
“We are very delighted to be working with Hoda again and work towards facilitating sustainable growth within the medium-sized business and safeguarding around 800 jobs,” explains Monika Beck, member of DEG’s Management Board.
Mariela González, CEO Hoda, says: “We are very excited to work with DEG again. They definitely push and support us in becoming a better company in all areas. We look forward to improving corporate governance and seek better efficiency in disease control using biologics.”
Hoda also sets itself apart from other companies with its high degree of social commitment and by offering a range of additional benefits to its workforce – from medical care for its staff and their families to transport to the workplace, further training opportunities and scholarships for the children of its employees. The company also supports the local economy by working together with local suppliers.
BSS measures taken to boost corporate governance
Private companies in developing markets often face challenges. As part of its Business Support Services (BSS), DEG advises companies and co-finances measures aimed at addressing these challenges. These include topics such as further training, risk management, environmental and social management systems as well as resource and energy efficiency. DEG is currently advising Hoda on corporate governance matters such as strategic decisions and improvements in management and control systems.
DEG has been operating in Latin America for almost 50 years and is represented on the continent with offices in Mexico City, Lima and São Paulo. To date, it has invested around EUR 2.7 billion in the region, which has gone towards financing investments by private companies. In 2021, DEG pledged another approx. EUR 566 million for investments in Latin America. These funds will go to companies in countries that have been hit particularly hard by the pandemic, with the aim of helping to mitigate the resulting economic impacts.