Ecom Corp Loan (IFC-36815)

Countries
  • Brazil
  • Ecuador
  • Ghana
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
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
Mar 31, 2016
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
ECOM Agroindustrial Corp. Limited
The holder of the loan, grant, or other investment.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Dec 14, 2017

Disclosed by Bank Jan 29, 2016


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Project Description
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.
Investment Description
  • International Finance Corporation (IFC)
Private Actors
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.
Contact Information
Oliver Schenkenberg ECOM Agroindustrial Corp. Ltd. Av Guillemin 16 CH -1009 Pully Switzerland Tel: + 41 58 721 7210 E-mail: mailto:oschenkenberg@ecomtrading.com ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/