NORSON (IDBI-12775-02)

Countries
  • Mexico
Geographic location 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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 15, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Norson Holding, S. de R.L. de C.V
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS May 9, 2022

Disclosed by Bank Aug 10, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
Here you can find a list of individual development financial institutions that finance the project.
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
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

EMAIL: requestinformation@idbinvest.org

PHONE: +1(202)-566-4566

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

 

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).

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