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Burapha Agro-Forestry Co., Ltd

Region and country of operations: Asia, Laos
Jurisdiction of registration: Laos
Business sector: Forestry and wood products

Date of agreement (month/year): 12/2018 (2016 not disclosed)
Finnfund’s financing: USD 10,000,000
Share of Finnfund’s financing: 33% of debt financing
Instrument: Loan
Size of project/financing: USD 30,000,000 of debt financing
Environmental and social category: B+

Project description

Burapha is an agroforestry and wood processing company operating in the greater Vientiane area in Laos. Finnfund, together with the Dutch development financier FMO and French Proparco, is providing debt financing for the plantation expansion and construction of the plywood mill. The eucalyptus plywood will be produced mainly for the export markets.

Main development impact

Burapha has created an innovative co-operation model with the local communities. The villagers are employed and trained by the Company during the planting and maintenance phases of the plantations. The villagers can also intercrop rice during the first 2 years of the eucalyptus rotation. Plantation forestry creates sustainable wood raw material base and contributes to climate change mitigation. Burapha’s eucalyptus plantations are FSC certified.

More information

Forest Burapha