Monte Rosa Nicaragua (IFC-43081)

Countries
  • Nicaragua
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
MONTE ROSA SA
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)
$ 25.00 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 Nov 16, 2020

Disclosed by Bank Nov 13, 2020

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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.

Pantaleon Group (Pantaleon) is an agro-industrial organization dedicated to the processing of sugar cane for the production of sugar, molasses, ethanol and electricity generated from bagasse, a by-product of sugar cane milling. Pantaleon is a leader in the Central American region in sugar production and has operations in Guatemala, Nicaragua, Mexico and Brazil. Monte Rosa S.A. (Monte Rosa) is a wholly owned subsidiary of Pantaleon (acquired in 1998) and is the second largest domestic sugar producer in Nicaragua.

The proposed financing consists of a US$15 million one-year revolving credit facility renewable for up to 4 years for working capital, and a US$10 million 7-year loan to Monte Rosa for the purchase of tractors, seeding, and harvesting equipment.

Monte Rosa mill is located in the municipality of El Viejo (https://goo.gl/maps/tPrN7RDdqaeGG8S9A). Its processing capacity is 18,000 tons of sugar cane per day and produces 280,000 tons of raw sugar and 30,000 tons of molasses per year. Monte Rosa owns 5,300 hectares (ha) of sugar cane plantations that together with 8,700 ha of leased land, supply 50% of its mill needs. Monte Rosa has confirmed that no land related claims exist against the company. The remainder of its sugar cane supply is sourced from 250 independent cane growers (about 15,000 ha). Monte Rosa also has a co-generation plant with an installed capacity of approximately 60 MW. Excess energy not used by the mill is sold to the national grid. In 2007, IFC provided financing to Pantaleon for the expansion of Monte Rosa’s production and co-generation facilities. The public disclosure documents for this investment are available at: https://disclosures.ifc.org/#/projectDetail/ESRS/26009.

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
Pantaleon Group Undisclosed - has unknown relation to Monte Rosa SA Subsidiary Agriculture and Forestry

Contact Information
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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

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