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Company name

Belize Sugar Industries Limited (“BSI”)

Project number

12295-01

Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.

E&S category
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B

Country

Belize

Sector

Agribusiness

Status

In implementation

Disclosed date

09/28/2018

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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11/02/2018

Approval date

11/02/2018

Signed date

02/20/2019

Sponsoring entity

ASR Group International, Inc. (“ASR”)

Investment Operations Department Contact

N/A

Investment type

Syndicated amount

N/A

Financing amount

USD $ 15,000,000

Currency

USD

Project scope and objective

The proposed transaction consists of a financing facility of up to US$15 million to be provided to Belize Sugar Industries (BSI), incorporating (i) a US$10 million senior secured loan with a tenor of up to six years, including a 1-year grace period and, (ii) a US$5 million uncommitted line of credit with a tenor of up to 3 years with annual disbursements and clean-ups (the "Loan"). The Loan will finance (i) the investment required to switch from producing mostly raw sugars to producing more direct-consumption (DC) sugars and, (ii) working capital needs of the company (the “Project”). The investment plan will mitigate the drop of raw sugar prices in the European Union (EU), BSI’s main export market, to around international sugar prices due to the lifting of quota restrictions on domestic beet production in October 2017. The Project will allow BSI to produce and market products at higher prices, to be sold in Europe and other international markets, mainly through related companies with ample distribution and commercialization networks. The higher prices of sugar received will also be transferred as an economic benefit to BSI’s supply chain, small and medium-sized sugarcane farmers.



BSI, established in 1963, and controlled by ASR Group International, Inc. (ASR) since 2012, is the main sugar mill and sugar exporter of Belize. In addition, BSI also owns and operates a 31.5 MW cogeneration energy power plant (Belcogen) for auto-consumption and sale of energy to the national public grid, providing around 15% of the country’s energy needs. In 2017, BSI milled 1.3 million tons of sugarcane and produced 144,000 tons of sugar, 40,000 tons of molasses and 70,000 MWh of energy.


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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY

67.4 Kb

ENVIRONMENTAL AND SOCIAL ACTION PLAN - BSI

125.1 Kb

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Contact information

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Alternatively, you may also use the following contact information :

Client Contact

EMAIL

N/A

PHONE NUMBER

N/A

POST OFFICE ADDRESS

N/A

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

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