NORSON (IDBI-12775-02)

Countries
  • Mexico
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 8, 2021
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Norson Holding, S. de R.L. de C.V
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 60.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 65.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Aug 13, 2021

Disclosed by Bank Aug 10, 2021


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Project Description

The Project consists of two financing facilities to support Norson Holding, S. de R.L. de C. V ("Norson", the "Company", the "Company" or the "Client"): (i) facility of financial support to eligible suppliers that are part of Norson's supply chain ("Reverse Factoring"); and (ii) a limited recourse financing facility to Norson, in which IDB Invest will finance eligible producers that have been specially created to develop (design, build, operate and maintain) infrastructure (mainly maternity and pig fattening farms) related to Norson's value chain under a partnership scheme ("Partnership Facility", collectively the Partnership and Reverse Factoring Facility, the "Project").

The Partnership consists of the creation of a company not controlled by Norson for the design, construction, operation and maintenance of facilities related to Norson's pig production operation. The new company will be funded by equity contributions of at least US$7.5 million (at least 30% by Norson and the remainder by independent producers in relation to Norson which will be defined in the structuring) and senior financing of up to US$11.5 million, of which at least US$7.0 million is expected to be funded by IDB Invest, while the remaining US$4.5 million is expected to be funded by a Norson relationship bank.

The factoring consists of a revolving, uncommitted reverse factoring facility to Norson and its eligible subsidiaries (the Purchasers) for up to $30 million. Through this facility, IDB Invest seeks to facilitate access to competitively priced financing for the Buyers' suppliers (SMEs) in Mexico.

Translated with www.DeepL.com/Translator (free version)

Investment Description
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Norson Holding, S. de R.L. de C.V. Undisclosed Agriculture and Forestry

Contact Information

EMAIL: requestinformation@idbinvest.org

PHONE: +1(202)-566-4566

ADDRESS: 1350 New York Ave NW, Washington, DC 20005

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).