FMO did ten Agribusiness transactions in 2011, of which the largest three in Argentina, Ukraine, and India. We typically provided working capital or investment capital to our clients, enabling them to invest in storage capacity or to finance their trade flows with longer term finance to ensure a stable funding basis. The Argentinean and Ukrainian projects were repeat transactions for existing clients, while the financing in India was for a new client, JK Paper Limited.
FMO coordinated a €35 million foreign currency convertible bond for Indian pulp and paper company JK Paper Limited. The bond, issued to FMO, DEG and Proparco, partially financed the expansion and development of a manufacturing plant, bringing new environmentally safe technologies to the company.
JK Paper is self-sufficient in its supply of raw materials through its farm forestry program, which allows local farmers to generate a stable income by purchasing seedlings to grow on their land, and selling back fully-grown trees to JK Paper. The company also contributes to the local community through educational, social and health programs. JK Paper, FMO, DEG and Proparco signed an environmental and social action plan, which will assist JK Paper in improving its social and environmental standards even further.