Element Mexico (IFC-49507)

Countries
  • Mexico
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Element Fleet Management Corp
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.75 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 24, 2025

Disclosed by Bank Jan 29, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

Element Fleet Management Corporation Mexico (https://www.elementfleet.com.mx/) (or the “company”) provides fleet financing and fleet management services to organizations. It optimizes fleet operations, including vehicle acquisition, maintenance, fuel management, safety, and remarketing. Element Mexico offers customized solutions to reduce costs, improve efficiency, and enhance fleet performance. While historically focused on fossil fuel-powered vehicles, Element Mexico is now dedicated to providing clients with solutions for electric vehicle (EV) adoption. IFC's proposed investment is a senior, unsecured debt financing package to be processed under the INR Strategic Client Framework initiative. The proposed loan may be structured in several tranches over multiple years. The first tranche (US$ 100 million), to be committed in the fiscal year 2025, entails an up to 5-year Sustainability-Linked Loan (SLL) with IFC providing US$75 million A Loan and mobilizing US$25 million. Future tranches may be committed over the next 3-5 years based on Element Mexico’s capex plans and timeline.  IFC's proposed investment is to support the purchase of passenger and commercial vehicles, medium and large trucks, as well as compatible charging infrastructure. The proposed investment will contribute to Mexico’s commitment to the Paris Agreement of reaching a 35% reduction in CO2 emissions below 2007 levels by the year 2030, particularly where commercial vehicles, with their greater number of daily kilometers traveled, present a larger opportunity for carbon reduction than personal vehicles. The transport sector is responsible for nearly 25-30% of Mexico’s GHG emissions, and road transport accounts for more than 80% of the sector’s emissions. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works