Sinu (IFC-41152)

Countries
  • Colombia
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
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.
Borrower
REFORESTADORA DEL SINU SUCURSAL COLOMBIA
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
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)
$ 15.00 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)
$ 15.00 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 Nov 23, 2018

Disclosed by Bank Nov 16, 2018


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Project Description

According to the bank, the proposed IFC investment is a US$15 million senior loan to Reforestadora del Sinu S.A. Sucursal Colombia (Sinu or the Company) to establish about 5,700 ha of eucalyptus plantations and the investments required to cultivate the trees to maturity in the Antioquia and Cordoba Provinces of Colombia (the Project). The Company is managed by Orion Capital Services Ltda., a specialized forest management company formed by several Chilean professionals with many years of experience in forest products sectors. This will be IFC's first investment in the Company, although IFC has had previous investments in agribusiness, paper and packaging in Colombia. In its first five years of planting, Sinu established roughly 4,800 ha plantations and conservation areas clustered in a region of sparsely populated and degraded pasturelands. Orion has experience in structuring and managing forestry businesses and brings experience to establishing commercial forest operations and infrastructure in an area of Colombia that has experienced significant conflict and very limited investment during recent history. Sinu will operate the plantations in conformity with the Forest Stewardship Council (FSC) Principles and Criteria and is committed to meeting IFC's Performance Standards.

Investment Description

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/