Proteak Exp (IFC-38754)

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
Approved
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."
Voting Date
Dec 20, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
PROTEAK UNO, S.A.B. DE C.V.
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)
$ 37.00 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.
Project Cost (USD)
$ 74.00 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.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 26, 2017

Disclosed by Bank Nov 14, 2016


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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.
Proteak is an existing IFC client and the largest forestry company in Mexico. (Proteak is based in Mexico and has subsidiaries in Costa Rica and Colombia.) The Company is seeking additional IFC support for the implementation of its 2017 - 2019 investment plan which aims to expand its sustainably managed eucalypts plantations, the replanting of existing plantations, funding incremental working capital needs and refinancing existing debt (the "project"). This project will support the growth of a forestry player with strong focus on sustainability. Additionally, the project will contribute to reduction of carbon emissions (through carbon sequestration) and generation of employment in remote rural areas of frontier regions (Tabasco, Veracruz and Chiapas), where job opportunities are scarce. Proteak has requested IFC to provide an A loan and parallel loan of up to US$ 65 mn. IFC IDENTIFIED APPLICABLE PERFORMANCE STANDARDS While all Performance Standards are applicable to this investment, IFC's environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS 1 - Assessment and Management of Environmental and Social Risks and Impacts PS 2 - Labor and working conditions PS 3 - Resource Efficiency and Pollution Prevention PS 4 - Community Health, Safety and Security PS 5 - Land Acquisition and Involuntary Resettlement PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources PS 8 - Cultural HeritageIf IFC's investment proceeds, IFC will periodically review the the project's ongoing compliance with the Performance Standards. According to the IFC, the Company neither operates, nor plans to acquire or lease plantations or lands belonging to indigenous peoples or proximate to recognized indigenous territories thus PS7: Indigenous Peoples is not considered applicable. However, the company will add specific procedures for the application of free, prior and informed consent as per PS7, should they encounter concentrations of Indigenous People in neighboring areas.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
IFC is providing a loan to Proteak Uno S.A.B. de C.V. (“Proteak”), a forestry company in Mexico. The investment proceeds will be used for Proteak’s investment program which consists of expanding its eucalyptus planted area, the replanting of existing plantations, working capital financing and debt refinancing. IFC will provide an up to US$ 37 million senior loan for its own account and mobilize an up to US $28 million senior loan from parallel lender(s). The total project cost is estimated at US$ 74 million.

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.
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/

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How it works