IDB Invest will provide financing of up to $30 million over a three-year term to Copeval, a company dedicated to the distribution of inputs and services for the agricultural sector in Chile. With this project, IDB Invest is committed to boosting the agricultural sector, increasing the competitiveness of export products, helping to create new jobs and boosting the domestic supply chain. The project will provide Copeval with a new financial tool with terms and a structure that will allow it to increase its supply and improve financing options for agricultural inputs, with a focus on small and medium-sized producers in Chile.
Photo: IDB Invest
This financing will also allow Copeval to promote e-commerce of agro-inputs with the aim of increasing geographic coverage, accessibility and a greater variety of products and prices, among other benefits.Support to strengthen the agricultural sector and the food industry in Chile is key given the increase in production costs and agro-inputs, this being a sector that represents an important source of income for the Chilean economy.
Together with IDB Invest, Copeval will execute an environmental and social plan, which will seek to implement sustainability actions in the supply chain. IDB Invest will also provide advisory services to develop solutions to respond to the growing need to optimize the use of resources, reduce the carbon footprint, and increase resilience to climate variability.
This project is aligned with IDB Invest’s commitment to promote food security in the region, with a financing solution that promotes the growth of trade and the supply chain. The operation is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8) and Responsible Consumption and Production (SDG 12).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Copeval is the main comprehensive distributor of products and services for Chilean farmers, it has 24 branches from Copiapó to Puerto Varas, serving more than 40,000 farmers of different sizes and agricultural items. Since its inception in 1956, Copeval has been committed to contributing to the competitiveness of the sector, through the permanent search for new technologies for production and is a pioneer in the generation of projects for agricultural sustainability, promoting good practices and management of residues resulting from agricultural activity.
This article was originally published by IDB.