Company name
Industrias de Foam S.A. de C.V.
Project number
13596-01
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
B
Country
El Salvador
Sector
Manufacturing
Status
In implementation
Disclosed date
05/30/2023
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
09/18/2023
Approval date
09/18/2023
Signed date
11/15/2023
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 10,000,000
Currency
USD
Project scope and objective
Indufoam is an El Salvador-based company engaged in the production of a variety of sleep-related products, including beds, mattresses, foam mattresses, furniture, and accessories. The Company's products are exported to Central and South America, as well as South Africa.
The proposed transaction is a medium-term credit facility intended to finance the expansion of the industrial plant, improvements of existing equipment and manufacturing capabilities, and new working capital needs for growth. This loan will be for up to a five years term and will have the complement of an un committed tranche, at IDB Invest's discretion, that will allow the necessary flexibility for the Company to complete and fulfill the progress of its investment plan.
The main goal of this transaction is to enable Indufoam to meet increased demand and expand into new technologies and efficiencies, so that it can produce mechanisms and accessories that are currently only manufactured in the United States or Europe and convert itself as a key supplier to the regional markets. This will not only create new jobs, but will also increase exports, strengthening product lines, and consolidating its role as a regional company.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
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.
INDUFOAM - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
204.8 Kb
INDUFOAM ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)
133.1 Kb