Genomma Lab (IFC-40144)

Countries
  • Mexico
Where the impacts of the investment may be experienced.
Specific Location
San Cayetano Morelos, Municipality of Toluca, State of Mexico
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
Active
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
Apr 25, 2018
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
GENOMMA LAB INTERNACIONAL SAB DE CV
The holder of the loan, grant, or other investment.
Sectors
  • Education and Health
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)
$ 54.00 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)
$ 54.00 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)
$ 208.40 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 10, 2018

Disclosed by Bank Feb 7, 2018


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Project Description

According to the International Finance Corporation, this project consists of providing corporate financing to Genomma's expansion plan over the next two years. Genomma focuses on the marketing, distributing, and sales of over-the-counter or nonprescription medicines and personal care products.

In 2017, the compay acquired a 32 hectare lot in the town of San Cayetano Morelos to build its first production facility. It also acquired a small pharmaceutical manufacturing facility in Mexico city. Both facilities will be dedicated to finished formulations and all active pharmaceutical ingredients will be procured externally. Genomma's distribution center will be relocated to the newly constructed facility. 

Early Warning System Project Analysis

As of the time of writing, the Environmental and Social Review Summary on the website contained a broken link. The International Finance Corporation has identified the following areas as potential impacts of the project:

PS 1 - Assessment and Management of Environmental and Social Risks and Impacts 
PS 2 - Labor and Working Conditions 
PS 3 - Resource Efficiency and Pollution Prevention 
PS 4 - Community Health, Safety and Security 

Investment Description
  • International Finance Corporation (IFC)

The purpose of the International Finance Corporation's (IFC) proposed corporate financing is to support Genomma's approximately US$208.4 million expansion plan over the next 2 years which includes the construction of Genomma's first manufacturing facility, debt refinancing, and other capital expenditures. The IFC's proposed investment is a US$54 million corporate loan to finance the construction of Genomma's first manufacturing  facility in the state of Mexico, debt refinancing, and other capital expenditures. 

Private Actors

The International Finance Corporation's describes the private actor as follows: "Founded in 1996, Genomma Lab Internacional S.A.B. de C.V.  is a Mexico based, pharmaceutical company listed in the Mexican Stock Exchange with presence in 19 countries across Latin America. It is focused on the marketing, distribution and sales of over-the-counter (OTC) or nonprescription medicines and personal care (PC) products.  The company does not manufacture any products yet, but works with more than 350 third-party contract manufacturers / co-packers that are US-Food and Drug Administration approved and/or have the approval of the local market where they sell their products. The company decided only recently to build its own in-house production capabilities."

Contact Information

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/