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According to the Bank’s website, the proposed investment is an up to €200 million syndicated term loan on a Unsecured Covenant Light basis (1-year maturity, renewable/re-committed annually, for up to 4 years in aggregate) by IFC to SUCDEN Cote d’Ivoire (“SUCDEN-CI”) and its parent company SUCDEN S.A (the “co-Borrower” and, jointly with SUCDEN-CI and other subsidiaries, “SUCDEN” or the “Group”) to finance the procurement and export of cocoa beans from Cote d’Ivoire (CI).
Overall, the Group expects to source around 108,000 metric tons of cocoa beans from CDI during the 2024/2025 season, with a target of 83,000 metric tons to be sourced through SUCDEN-CI, which is traceable, and the majority of which is certified against voluntary sustainability standards (VSS) and/or similar E&S requirements from SUCDEN-CI’s customers. The remaining 25,000 metric tons will be sourced through other exporters.
SUCDEN-CI does not own any farms, nor is expected to own any farm as part of this financing. The supply chain of SUCDEN-CI consists of both cooperatives and intermediaries; last season out of the total 70,000 metric tons sourced, 62,110 metric tons was sourced from 90 cooperatives. The beans are sourced from smallholder farmers who are either members of those co-operatives or who sell to the same intermediaries every year. Most cocoa bean harvesting is undertaken from October to March (80 percent of the annual harvest), while the rest of it is obtained in April to September.
This is a Category A project according to IFC's Policy on Environment and Social Sustainability (2012). Key E&S risks and issues associated with this investment are the same as those for #47216 and are: (i) The robustness of SUCDEN’s E&S and Supply Chain risk assessment and implementation effectiveness of its Environmental and Social Management System (ESMS) for its direct operations (e.g., warehouses) and cocoa sourcing operations in CDI, including gender-based violence (GBV) risks; (ii) The E&S capacity/competency to ensure timely implementation of SUCDEN’s Sustainable cocoa sourcing strategies up to and including September 2028 in CDI; (iii) Provision of fair and safe working conditions in line with PS2 and local labor requirements for direct workers and contractors of SUCDEN-CI; (iv) The efficacy of the risk assessment of its primary cocoa suppliers, including effective implementation of SUCDEN’s Supplier Code of Conduct, risk assessment procedures of its cocoa sourcing, and annual independent verification of compliance with SUCDEN and off-takers’ sustainability requirements, including avoidance of risks associated with child/forced labor, significant safety hazards (such as use of pesticides), and risks of conversion of Natural and/or Critical Habitats to farmland to be used for cocoa production; (v) The effectiveness of emergency preparedness and road safety policy and procedures; and (vi) The implementation of a Stakeholder Engagement Plan and Community Grievance Mechanism in CDI.
An up to €200 million syndicated term loan on a Unsecured Covenant Light basis (1-year maturity, renewable/re-committed annually, for up to 4 years in aggregate).
SUCDEN S.A. and SUCDEN Cote d’Ivoire.
Sucden is an independent market leader in soft commodities and a global purchaser of cocoa from farmers and various types of farmer organisations.
| Private Actor 1 | Private Actor 1 Role | Private Actor 1 Sector | Relation | Private Actor 2 | Private Actor 2 Role | Private Actor 2 Sector |
|---|---|---|---|---|---|---|
| - | - | - | - | SUCDEN CI | Client | - |
| - | - | - | - | SUCDEN S.A. | Client | - |
SUCDEN SA
Abla Kerdoudi
Finance Manager
33 (0) 1 53 30 12 34
sucden@sucden.com
15 BP 727 Abidjan, Zone industrielle Vridi Tri Postal
www.sucden.com
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