SUCAFINA BRASIL INDUSTRIA, COMERCIO (FMO-61233)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
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
SUCAFINA BRASIL INDUSTRIA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 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.
Campaign Documents
Primary Source

Original disclosure @ FMO website

Updated in EWS Aug 4, 2022

Disclosed by Bank Jul 1, 2022

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Contact the EWS Team

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.

WHO IS OUR PROSPECTIVE CLIENT?

Sucafina is a multinational coffee merchant, founded in 1977 and based in Geneva, Switzerland. The company is active across the coffee value chain ranging from farming to roasting and has the vision to be the Leading sustainable farm to roaster coffee company in the world by 2025.

WHAT IS THE FUNDING OBJECTIVE?

FMO will take an unfunded risk participation in a sustainability linked borrowing base facility, made available and arranged by Rabobank (https://www.rabobank.com/) for Sucafina. The company will utilize the proceeds of the loan to fund sales of coffee to eligible buyers, purchase of coffee from eligible suppliers (including prepayments) and to finance warehousing and fobbing costs. Part of the loan proceeds will also be earmarked for covering margin calls.

WHY DO WE WANT TO FUND THIS PROJECT?

With this facility, Sucafina will be able to further expand its origination activities in Brazil and Colombia and thereby provide more direct support to coffee farmers. Through its sustainability activities, including the Farmer Hub initiative, Sucafina wants to increase the number of smallholder farmers reached globally from ~170,000 to 350,000 in 2025 and assist them with growing specialty coffees, diversifying into other crops and access to banking services and markets. FMO is closely supporting the Farmer Hub initiative through its capacity development program.

ENVIRONMENTAL AND SOCIAL RATIONALE

The E&S category is B+ (not changed since previous investment), due to largely reversible impacts, which can be mitigated through good management practices and Good International Industry Practice. Relevant IFC PS are 1 thru 4. The Company's assets are mainly primary processing units, warehouses and washing stations. PS 5 is not relevant since there is no ownership of farms and/or acquisition of large tracts of land. PS6 is not relevant because operations are not in or near HCV areas or Ramsar sites. The same applies to PS 7 and 8.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Sucafina SA Client Industry and Trade

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

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works