Element Mexico (IFC-49507)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
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 17, 2024
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
Element Fleet Management Corp
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Transport
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)
$ 75.00 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.
Loan Amount (USD)
$ 75.00 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)
$ 100.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 27, 2025

Disclosed by Bank Jan 29, 2025

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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.

As stated on the project disclosure page, the IFC's proposed investment is a senior, unsecured debt financing package to be processed under the INR Strategic Client Framework initiative. The proposed loan may be structured in several tranches over multiple years.

The proposed investment entails a local currency-denominated (Mexican Pesos) senior loan of up to US$100 million equivalent in MXN to Element Fleet Management Corporation (Element or the Company) and its Mexican subsidiaries—Element Fleet Management Corporation México, S.A. de C.V., and Element Fleet México, S.A. de C.V., SOFOM, E.N.R. (Element Mexico Subsidiaries) for the acquisition of EVs (passenger cars, last-mile trucks, and vans) and investment in associated charging infrastructure (the Project).

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

As stated by the IFC, the first tranche (US$ 100 million), to be committed in the fiscal year 2025, entails an up to 5-year Sustainability-Linked Loan (SLL) with IFC providing US$75 million A Loan and mobilizing US$25 million. Future tranches may be committed over the next 3-5 years based on Element Mexico’s capex plans and timeline.

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.

As stated by the IFC, Element Fleet Management Corporation Mexico (https://www.elementfleet.com.mx/) (or the “company”) provides fleet financing and fleet management services to organizations. It optimizes fleet operations, including vehicle acquisition, maintenance, fuel management, safety, and remarketing. Element Mexico offers customized solutions to reduce costs, improve efficiency, and enhance fleet performance. While historically focused on fossil fuel-powered vehicles, Element Mexico is now dedicated to providing clients with solutions for electric vehicle (EV) adoption.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Element Fleet Management Corp Client Transport

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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Element Fleet Management Corp:

Rocco Colella - Director, Investor Relations
Phone: +52 437 349-3796
Email: rcolella@elementcorp.com 
Website: https://www.elementfleet.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

How it works

How it works