Sabadell Mex (IFC-40408)

Countries
  • Mexico
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
Proposed
Bank Risk Rating
FI
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
Oct 1, 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
SABADELL CAPITAL, S.A. DE C.V., SOFOM, E.N.R.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • No Restrictions
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 100.00 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)
$ 100.00 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 Aug 1, 2018

Disclosed by Bank Jul 30, 2018


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Project Description

According to the International Finance Corporation, this project consists in a Senior Secured Loan, a loan takes priority over other loans in repayment, to SabCapital S.A. de C.V., SOFOM, E.R. The loan will be used to grow its tourism (hotels) and green buildings portfolios in Mexico. The proposed project will support the entrance of Banco de Sabadell S.A. (Spain), through SabCapital, as a new participant in the Mexican financial system. The loan will be fully guaranteed by Sabadell Spain.

Early Warning System Project Analysis

The International Finance Corporation has rated the project as FI-2, which according to their documents corresponds with a medium risk or category B project. It gives the following explanation for their rating:

This project has been categorized as FI-2 in accordance with IFC’s Policy on Environmental and Social Sustainability based on the risk of the portfolio to which IFC will be exposed. As of March 2018, SabCapital lending to hotels represented 17.5% of their total loan portfolio. Most of SabCapital’s hotel portfolio includes projects with potential limited adverse environmental or social (E&S) risks or impacts that can be readily addressed through mitigation measures. However, some hotels might be in environmentally and culturally sensitive areas, and require additional mitigation measures. As part of IFC’s financing, SabCapital will be required to screen all its commercial loans against IFC Exclusion List, and to verify that loans to hotels and green buildings comply with the applicable E&S laws and, when applicable, with IFC Performance Standards.

People Affected By This Project

The International Finance Corporation says that the project will have the following impacts:

(i) Competitiveness: In the highly concentrated banking system in Mexico, the entrance of Sabadell Spain is expected to help foster higher competition in the corporate banking and project finance space, particularly in tourism (hotels) and green investments.
(ii) Sustainability: The project will contribute on the development of sustainable finance in Mexico, with a special focus on tourism (hotels) and green buildings.

 

Additionally, the key potential environmental and social risks that the Corporation has identified are listed below:
(i) worker’s health and safety during construction

(ii) conversion of and impacts to critical natural habitat

(iii) unfair working conditions in the hospitality industry

(iv) life and fire safety in buildings accessed by the public.

Investment Description

The investment will be in the form of a Senior Secured Loan. 

Financial Intermediary
Financial Intermediary: A commercial bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

The International Finance Corporation lists the following description for the private actors involved in this project:

Sponsor: Sabadell Spain is the 4th largest Spanish financial institution, operating mainly in Spain, UK and the Americas. The group is listed in the IBEX 35 stock market in Spain.

Partner: SabCapital is a fully owned subsidiary of Sabadell Spain. It started operations in Mexico in April 2014 as a SOFOM, a non-bank financial institution (non-deposit taking), focusing on corporate lending in sectors such as tourism, real estate, energy, industry, among others.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Banco de Sabadell SA Parent Company -
- - - - Banco de Sabadell SA Investor -
8minutenergy Renewables LLC Parent Company Energy owns CD Clean Energy & Client Energy
ACS Parent Company Construction owns Dragados SA Client Construction
Al-Fanar Coml Invest Co Parent Company Energy owns Alfanar Wind Farms Client Energy
Alupar Investimento Parent Company Energy owns Nueva Esperanza - La Virginia Transmission Line (125KM) PPP Client Energy
Apollon Holding AS Parent Company Construction owns Verallia France SA Client Construction
Ardo Coordination Center NV Parent Company Agriculture and Forestry owns Congelados De Navarra SA Client Agriculture and Forestry
Avant Energy S. De Rl De Cv Parent Company Energy owns Fuerza Y Energia Limpia De Client Energy
Banco de Sabadell Investor Finance invests in 8minutenergy Renewables LLC Parent Company Energy
Banco de Sabadell Investor Finance invests in Abelan Board & Pkg Solutions Parent Company Industry and Trade
Banco de Sabadell Investor Finance invests in Abengoa Abenewco 1 SAU Parent Company Energy
Banco de Sabadell Investor Finance invests in Abengoa Abenewco 2 SAU Parent Company Construction
Banco de Sabadell Investor Finance invests in Abertis Infraestructuras SA Parent Company Transport
Banco de Sabadell Investor Finance invests in Acciona SA Parent Company Transport
Banco de Sabadell Investor Finance invests in Acek Desarrollo y Gestion Parent Company Construction
Banco de Sabadell Investor Finance invests in Acoustics & Insulation Parent Company Construction
Banco de Sabadell Investor Finance invests in ACS Parent Company Construction
Banco de Sabadell Investor Finance invests in ACS Parent Company Transport
Banco de Sabadell Investor Finance invests in Adveo Group International SA Parent Company Agriculture and Forestry
Banco de Sabadell Investor Finance invests in AECOM Parent Company Construction
Banco de Sabadell Investor Finance invests in Afortunadas Shipping Ltd Parent Company Transport
Banco de Sabadell Investor Finance invests in Africana Energia SL Parent Company Energy
Banco de Sabadell Investor Finance invests in Agencia Guipuzcoana de Parent Company Transport
Banco de Sabadell Investor Finance invests in Al-Fanar Coml Invest Co Parent Company Energy
Banco de Sabadell Investor Finance invests in Aldesa Agrupacion Empresarial Parent Company Construction
Banco de Sabadell Investor Finance invests in Aldesa Construcciones SA Parent Company Construction
Banco de Sabadell Investor Finance invests in Alfa SAB de CV Parent Company Industry and Trade
Banco de Sabadell Investor Finance invests in Almacenes Metalurgicos SA Parent Company Mining
Banco de Sabadell Investor Finance invests in Alposol Fotovoltaica Slu Parent Company Energy
Banco de Sabadell Investor Finance invests in Altan Pharma Spain SLU Parent Company Education and Health
Banco de Sabadell Investor Finance invests in Amcor Ltd Parent Company Industry and Trade
Banco de Sabadell Investor Finance invests in American Tower Corp Parent Company Infrastructure
Banco de Sabadell Investor Finance invests in AMETEK Inc Parent Company Energy
Banco de Sabadell Investor Finance invests in Ancient Baths Group SL Parent Company Industry and Trade
Banco de Sabadell Investor Finance invests in Anheuser-Busch Inbev SA/NV Parent Company Agriculture and Forestry
Banco de Sabadell Investor Finance invests in Apollon Holding AS Parent Company Construction
Banco de Sabadell Investor Finance invests in Apoyo y Logistica Ind Canarias Parent Company Transport
Banco de Sabadell Investor Finance invests in Applegreen PLC Parent Company Mining
Banco de Sabadell Investor Finance invests in ArcelorMittal SA Parent Company Mining
Banco de Sabadell Investor Finance invests in Ardo Coordination Center NV Parent Company Agriculture and Forestry
Banco de Sabadell Investor Finance invests in Argan SA Parent Company Industry and Trade
Banco de Sabadell Investor Finance invests in Arlington Valley Solar Energy Parent Company Energy
Banco de Sabadell Investor Finance invests in ARTECHE LANTEGI ELKARTEA SA Parent Company Energy
Banco de Sabadell Investor Finance invests in Asset Energia Solar Parent Company Energy
Banco de Sabadell Investor Finance invests in Astilleros de Murueta SA Parent Company Transport
Banco de Sabadell Investor Finance invests in Aten Oil Parent Company Construction
Banco de Sabadell Investor Finance invests in Avant Energy S. De Rl De Cv Parent Company Energy
BANKINTER SA Parent Company Energy owns Solucia Renovables 1 Sl Client Energy
Baywa Re Solar Systems Parent Company Energy owns Fern Solar LLC Client Energy
Belltown Power Ltd Parent Company Energy owns Tirgwynt Onshore Wind Farm Client Energy
Bid Corp Ltd Parent Company Agriculture and Forestry owns Guzman Gastronomia SL Client Agriculture and Forestry
Caithness Energy LLC Parent Company Energy owns Guernsey Power Stn Llc Client Energy
Cemex SAB de CV Parent Company Construction owns Cia Valenciana de Cementos Client Construction
Crowind S.L. Parent Company Energy owns Eolia Windco SLU Client Energy
Cubico Sustainable Invests Ltd Parent Company Energy owns Project Fortitude Client Energy
Duke Energy Corp Parent Company Energy owns Green Frontier Windpower LLC Client Energy
Elecnor Parent Company Energy owns Elecnor Refinancing 2017 Client Energy
Engie SA Parent Company Energy owns Monet Client Energy
Eolia Renovables de Parent Company Energy owns Explotaciones Eolicas Sierra Client Energy
Eurocom Holdings (1979) Ltd Parent Company Energy owns Generacion Eolica Castilla La Client Energy
First Solar Inc Parent Company Communications owns Cal Flats Solar InvestCo LLC Client Communications
Fri-El Green Power SpA Parent Company Energy owns Alerion Wind Acq Client Energy
Greenalia SA Parent Company Energy owns Greenalia Wind Power Eolo Moc Client Energy
Grupo Argos SA Parent Company Construction owns Argos N America Corp Client Construction
Grupo Bio Pappel SA de CV Parent Company Agriculture and Forestry owns Bio Pappel SAB de CV Client Agriculture and Forestry
Grupo Energia Bogota SA ESP Parent Company Energy owns Transcogas Peru SAC Client Energy
Grupo Enhol Parent Company Energy owns Eolica Ablitas Client Energy
Grupo Siro Corporativo SL Parent Company Agriculture and Forestry owns Cerealto Siro Foods SL Client Agriculture and Forestry
Inmobiliaria Carso SA de CV Parent Company Construction owns Azincourt Investment Client Construction
Inmobiliaria Carso SA de CV Parent Company Construction owns FCC Client Construction
Invenergy Parent Company Energy owns Altamira I Trigeneration Plant (18MW) Client Energy
KKR & Co Inc Parent Company Energy owns X-Elio Solar Portfolio Client Energy
Koc Holding AS Parent Company Finance owns Yapi ve Kredi Bankasi AS Client Finance
Kuwait Investment Authority Parent Company Energy owns Global Power Generation SA Client Energy
Laboratorios Sanfer SA de CV Parent Company Education and Health owns Invekra SAPI de CV Client Education and Health
Madrilena Red de Gas Parent Company Energy owns Madrilena Red de Gas Eurobond Facility 2017 Client Energy
Meridia Capital Partners SGEIC Parent Company Agriculture and Forestry owns Sosa Ingredientes SL Client Agriculture and Forestry
Minerva Capital SL Parent Company Communications owns PREMO Corp SL Client Communications
Nueva Composan SA Parent Company Construction owns Asfaltos Chova Client Construction
Obrascon Huarte Lain Parent Company Energy owns Obrascon Huarte Lain (OHL) Additional Facility 2017 Client Energy
Olmedilla Energia Solar SL Parent Company Energy owns Olmedilla Hive SL Client Energy
Opdenergy SA Parent Company Energy owns Opde Andalucia 1 Client Energy
Opdenergy SA Parent Company Energy owns Opde Extremadura 2 Client Energy
Optrom Inc Parent Company Energy owns Carraig Gheal Windfarm Client Energy
Peoples Republic of China Parent Company Construction owns Aeronaval de Construcciones Client Construction
Pescanova SA Parent Company Agriculture and Forestry owns Nueva Pescanova SL Client Agriculture and Forestry
Portobello Capital SL Parent Company Agriculture and Forestry owns Angulas Aguinaga SA Client Agriculture and Forestry
Realza Capital SGECR SA Parent Company Construction owns Industrias Dolz SA Client Construction
Renovalia Solar SL Parent Company Energy owns Ciudad Real Merchant Solar Client Energy
SPIE SA SPV Parent Company Construction owns Spie SA Client Construction
SSE PLC Parent Company Energy owns WTI Ferrybridge Ltd Client Energy
Tenaga Nasional Bhd Parent Company Energy owns Vortex Solar UK Ltd Client Energy
The Carlyle Group LP Parent Company Agriculture and Forestry owns Grupo Empresarial Palacios Client Agriculture and Forestry
The Cranemere Group Ltd Parent Company Construction owns Construplas SL Client Construction
The DE Shaw & Co LP Parent Company Energy owns Desri Lkv Solar Financing LLC Client Energy
The DE Shaw & Co LP Parent Company Energy owns Red Horse Wind 2 LLC Client Energy
Viking Consortium Holdings Ltd Parent Company Energy owns Belvedere Waste-to-Energy Client Energy
Vivimed Labs Ltd Parent Company Education and Health owns Uquifa Client Education and Health
Vivimed Labs Ltd Parent Company Education and Health owns Vivimed Labs Spain SL Client Education and Health
Yantai Chang Yu Group Co Ltd Parent Company Agriculture and Forestry owns Hacienda y Vinedos Marques Client Agriculture and Forestry

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/