FCS RE Hansae Haiti (IFC-38364)

Countries
  • Haiti
Where the impacts of the investment may be experienced.
Specific Location
Port-au-Prince
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Approved
Bank Risk Rating
B
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
Jun 15, 2017
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
HANSAE HAITI S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
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)
$ 3.00 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)
$ 30.00 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 @ IFC website

Updated in EWS Aug 9, 2017

Disclosed by Bank May 16, 2017


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Project Description
IFC is considering providing a loan of up to US$3 million to partially support Hansae Co. Ltd., a South Korean garment manufacturer in setting up its first manufacturing operating in Haiti. The IFC's development objectives include job creation, contribution to economic growth, and increased foreign investment in Haiti. Hansae currently exports approximately 300 million pieces of clothing per year from 11 production facilities in 5 countries: Nicaragua, Guatemala, Indonesia, Myanmar and Vietnam. Phase 1 of the Haiti project entails the establishing of a cutting and sewing plant of up to 44 production lines in the Sonapi (Societe Nationale des Parcs Industriels) industrial park in Port-au-Prince. This proposed investment is an E&S Category B project according to IFC’s Policy on Environmental and Social Sustainability, because potential adverse E&S risks are limited, reversible and may be readily mitigated. The key E&S issues associated with this proposed apparel manufacturing operation are expected to relate to Hansae’s capacity and practices to assess and manage E&S issues and risks, the provision of safe and fair working conditions, and appropriate management of small quantities of emissions and wastes from the company’s operations including that potentially generated from future washing operation.
Investment Description
  • International Finance Corporation (IFC)
Hansae's investment plan in Haiti amounts to US$30 million, out of which US$13.5 million is allocated to the project or phase I of the investment plan . The IFC is financing phase I with an A loan of up to US$3 million. Hansae Co is owned 31% by minority or public shareholders, 14% by the CEO Dong Nyeong Kim and family, 42% by Hansae Yes 24 Holdings (owned 64% by Mr. Kim and family), 11% by the National Pension Service and 2% by various Hansae senior employees.
Contact Information
Hansae Haiti S.A. Mr. Hyunwoo Shin Accounting Manager +509-4303-3172 hshin@hansae.com Hansae Haiti S.A., Building 50, Sonapi, Port-au-Prince, Haiti 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/