DFP Nexxus (IFC-48795)

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
Nexxus Fondo de Deuda Privada II
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
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.
Project Cost (USD)
$ 235.00 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 May 16, 2024

Disclosed by Bank Mar 20, 2024

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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.

According to the Bank’s website, the proposed project consists of an equity investment in Nexxus Private Debt Fund II of up to US$30 million equivalent in MXN, along other private institutional investors, targeting a Fund size ranging from US$175 million to US$235 million equivalent in local currency. The Fund aims to finance mid-market Mexican enterprises (MEs) going through a growth stage with stabilized cash flows and SMEs (the “Project”). The Fund will be managed by Nexxus Capital, S.A.P.I. de C.V. (“Nexxus” or the “Manager”), one of the leading asset managers of alternative investments in Mexico with over 25 years of experience.                                                    

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The E&S risks and impacts of the Project derive from the Fund’s capacity to assess and manage the E&S risks associated with the diversified pipeline in sectors such as real estate, tourism, and logistics, which are expected to be mostly OHS related and medium in E&S risk nature. Additionally, the Project will not support investments involving activities described in IFC’s exclusion list, companies operating in the coal sector, or higher risks activities sub-projects. The Project has been categorized as FI-2, in accordance with the IFC’s Sustainability Framework.

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

An equity investment of up to US$30 million equivalent in MXN, along other private institutional investors, targeting a Fund size ranging from US$175 million to US$235 million equivalent in local currency.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Nexxus Capital, S.A.P.I. de C.V. - Nexxus is an investment firm focused on private equity and mezzanine debt for middle market companies in Mexico and Spain.

The Fund’s investor base will be primarily composed of Mexican Pension Funds (AFOREs), insurance companies, and other accredited or institutional investors.                  

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Nexxus Capital, S.A.P.I. de C.V. Parent Company -

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.

Nexxus Capital, S.A.P.I. de C.V.
Iker Paullada
Director
+52 55 5292 3400
ipaullada@nexxuscapital.com
Bosque de Alisos 47-B 4th fl. Bosques de las Lomas, Cuajimalpa, 05120, Mexico City, Mexico
www.nexxuscapital.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

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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How it works