Company name

Ganadería Integral de Nicaragua, S.A. (“GINSA”)

Project number

NI3846A-02

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

Nicaragua

Sector

Agribusiness

Status

Completed

Disclosed date

09/03/2014

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

Projected board date
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10/07/2014

Approval date

10/28/2014

Signed date

12/16/2014

Sponsoring entity

N/A

Team leader

Perez, Alfonso

Investment type

Financing requested

N/A

Syndicated amount

USD $ 21,000,000

Financing amount

USD $ 5,000,000

Currency

USD

Project scope and objective

Ganadería Integral de Nicaragua, S.A. (“GINSA”) is a company related to Grupo Viz de México (“Sukarne,” www.sukarne.com). Founded in 2008, GINSA is located in the Villa El Carmen Municipality, approximately 35 kilometers from Managua. GINSA is a beef producer with finishing feedlots, a feed storage and processing plant, and facilities for transporting, handling, buying, and selling cattle.

The GINSA project consists of constructing, equipping, and commissioning a slaughterhouse with nominal capacity to slaughter 180,000 head of cattle annually. The project also includes expanding the corrals and the feed plant to handle inventory of up to 50,000 head of cattle. With this project, GINSA will consolidate its commercial position by becoming a Nicaraguan producer that has integrated the finishing, slaughtering and processing, sales, and export phases of beef production.

The IIC loan will consist of an A loan of up to US$5 million; a B loan from participating banks of up to US$25 million; and a C loan from Mexico’s Banco Nacional de Comercio Exterior, S.N.C. of up to US$20 million. This will be the IIC’s second loan to GINSA. The first IIC loan to GINSA was in 2012 for US$10 million.

Nicaragua is an important producer in the agribusiness sector in Central America. It runs a surplus in cattle production and beef exports. The IIC loan will complement foreign investment in Nicaragua, help create jobs, and boost an important sector of the domestic economy. Exports of beef and cattle—the second largest category of Nicaraguan exports—stood at more than US$228 million in the first half of 2014. Through GINSA, Grupo Viz continues to exchange information and experience with a number of players in the agriculture and livestock sector in Nicaragua, including both professional associations and entities associated with the Nicaraguan government.

Grupo Viz, with its Sukarne brand, is an integrated animal protein producer and Mexico’s largest beef producer, posting over US$400 million a year in exports to Japan, Russia, South Korea, the United States, and other international markets. Headquartered in Culiacán, in the State of Sinaloa, Grupo Viz has five production facilities in Mexico and a nationwide distribution and marketing network.

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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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

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Contact information

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