Second Program for the Financing of Rural Sector Production Restructuring and Investments Projects (IADB-ME-L1190)

Countries
  • Mexico
Where the impacts of the investment may be experienced.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 30, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
BANSEFI
The holder of the loan, grant, or other investment.
Sectors
  • Finance
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, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IADB website

Updated in EWS Jun 25, 2017

Disclosed by Bank Apr 4, 2016


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Project Description
The objective of the second program under the conditional credit line for investment projects (CCLIP) ME-X1021 is to help raise productivity in Mexico's rural areas by financing production restructuring, investment, and enterprise and export-development projects. Accordingly, medium and long-term credit resources will be channeled to the rural sector through FIRA (Agricultural Trust Fund)'s network of financial intermediaries to enable enterprises, particularly micro, small, and medium-sized enterprises, in the rural agribusiness, commerce, and related services sectors to carry out their production restructuring, investment, and enterprise and export-development projects. The CCLIP's objective is to promote private investment in production restructuring, investment, and enterprise and export development projects that boost productivity or promote more efficient use of natural resources, primarily in Mexico's rural sector, through long-term financing that facilitates a greater supply of credit for such investments under favorable conditions. The loan provides resources to fund second-tier credit operations. Therefore its environmental and social impacts and risks will occur at the subloan level and cannot be foreseen ex ante.
Investment Description
  • Inter-American Development Bank (IADB)
The program will have a single credit component for US$50 million to fund investment and technology adoption projects. Eligible projects will be those submitted by rural agroindustrial, marketing, and services enterprises with the aim of investing in, e.g., machinery and processing, transport, and storage equipment; repairs or upgrading of plants, warehouses and depots; the modernization of power plants; the treatment of wastewater; and other investments geared toward raising the productivity of the beneficiaries. The second Conditional Credit Line Program will be financed with resources from the Bank’s Ordinary Capital, in U.S. dollars, up to 50 million.
Contact Information
ACCOUNTABILITY MECHANISM OF IADB 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).