It is proposed that IFC provide up to $50 million to ECOM Agroindustrial Corp. Ltd. (“ECOM” or the “company”), an existing IFC client, for capital expenditure in Brazil (from where coffee and cotton is sourced), Ghana (cocoa) and Ecuador (also cocoa) and permanent working capital for general purposes, including providing financing to small holder farmers. The proposed investment would enable ECOM to: i) strengthen its balance sheet with permanent working capital; ii) support its ongoing efforts to further vertically integrate from its coffee and cocoa sourcing operations into midstream operations (e.g. coffee wet mills and cocoa processing plants); and iii) continue to invest into improving its sustainable (traceable/certified) supply chain practices.
IFC has had a long association with ECOM. Investments in 2006 (project #24433), 2008 (#26705), and 2010 (#29005) provided corporate loans to finance advances/provide long term loans to ECOM coffee suppliers in Central America. In 2012 (#30789) IFC also provided a $50 million C Loan to ECOM to allow the company to increase the amount of working capital, and support ECOM’s internal financing needs. In 2015, a $30 million credit facility (#33969) was jointly approved by IFC, IDB and Starbucks for long-term funding for coffee producers in Nicaragua to renovate farms affected by coffee rust.
ECOM is a leading commodity trader incorporated in Switzerland with operations in 40 countries in Africa, Asia, Europe, Latin America and the United States. ECOM operates in sectors that are dominated by smallholder farmers and provides short-term loans for seasonal credits to its coffee and cocoa suppliers and selectively long-term loans for productivity and certification related investments. The Group is a significant player in the global coffee, cocoa and cotton trades.
ECOM was founded in Barcelona, Spain in 1849 by the Esteve Family, which still owns 94% of the Company with the balance held by the senior management.
ECOM Agroindustrial Corp. Ltd.
Av Guillemin 16
CH -1009 Pully
Tel: + 41 58 721 7210
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