Jamaica Broilers (IIC-12125-01)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Haiti
  • Jamaica
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
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 11, 2017
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
Jamaica Broilers Group Limited
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)
$ 16.00 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)
$ 16.00 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)
$ 16.00 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
Campaign Documents
Primary Source

Original disclosure @ IIC website

Updated in EWS Sep 20, 2018

Disclosed by Bank Nov 8, 2017

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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 IIC website, the proposed operation consists of the following financing facilities:

1. IIC Guarantee: The IIC will issue a local currency guarantee for up to an equivalent amount of US$11 million in favor of Sagicor to provide competitive financing to Jamaica Broilers Group Limited in local currency. In turn, Sagicor will provide JBGL a 3-year tenor senior loan in local currency for up to an equivalent amount of US$10 million to finance its working capital needs, which consist in chicks, feeds, services and financing provided to farmers, in order to support the Company´s growth. 

2. IDB Senior Loan I: The IDB will provide to Haiti Broilers S.A. a 2-year senior loan in local currency for up to an equivalent amount of US$2 million to provide working capital financing to small and medium farmers (of broilers and layers) that supply HB. The local currency will be offered by using the exchange rate hedge offered by TCX.

3. IDB Senior Loan II: The IDB will provide to HB an 8-year senior loan in local currency for up to an equivalent amount of US$3 million to finance the acquisitions of the land where HB currently has its chicken houses. The local currency will be offered by using the exchange rate hedge offered by TCX.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
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.

The IDB Invest lists the following private actor description: 

"Jamaica Broilers Group Limited (JBGL) began operations 60 years ago and is the leading poultry manufacturer in Jamaica with an estimated market share of 40% and the largest poultry producer in the Caribbean. JBGL is a vertically integrated company producing and selling chicken meat and processed chicken meat products, table eggs, fertile eggs, baby chicks, animal feed, and other agricultural products. In the year ended in April 2017, JBGL sold 45 million tons of poultry, 155 million tons of animal feed and 15 million chicks, having revenues for around US$345 million.

The Company has grown over the years expanding its operations to United States and Haiti, establishing HB in 2010 in a joint venture with Haiti Partners S.A., a local Haitian partner. HB established its production facilities in 2012, focused on table eggs, broiler meat, chicks and feed. Currently, accounts for 4,0% of JBGL’s consolidated revenues, totaling US$12.6 million in the year ended in April 2017."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Haiti Broilers S.A. Client -
- - - - Jamaica Public Service Company Limited Client -

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.

Project Contact: Ian Parsard
Executive Vice President, JBGL
Phone number: (876) 943-4376
Email Address: iparsard@jabgl.com

ACCOUNTABILITY MECHANISM OF IIC

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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How it works