IDB Invest finances the sustainable growth of the sugar sector in Nicaragua
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a loan of up to $37.5 million to Nicaragua Sugar Estates Limited, a leading company in the Nicaraguan sugar sector. The deal will help finance agricultural and industrial investments to increase productivity sustainably and adapt its business to the effects of climate change.
The 8-year tenor loan will help Nicaragua Sugar take steps to better conserve its resources, such as optimizing the use of fertilizer and using less water and diesel consumption. It will also help support its supply chain.
IDB Invest’s financing also includes advisory services that will support the transition to new irrigation technologies, adaptation to climate change, better use of water and energy, and the promotion of innovative technologies.
The sugar sector is one of the main industries in Nicaragua. It represents more than 7 percent of the country's total exports and generates more than 35 thousand direct jobs and 135 thousand indirect jobs, especially in rural areas where the incidence of poverty and climate change are greater.
The financing package includes a $25 million loan from IDB Invest, and another loan of $12.5 million of blended financing funds from the Canadian Climate Fund for the Private Sector of the Americas (C2F), which for the first time supports a project for the adoption of irrigation systems and water management that optimizes the use of resources.
The operation potentially contributes to four of the United Nations Sustainable Development Goals: No Poverty (SDG 2), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12) and Climate Action (SDG 13).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.4 billion under management and 342 clients in 24 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
About Nicaragua Sugar Estates Limited
Nicaragua Sugar Estates Limited, founded in 1890, is the main sugar mill in Nicaragua. It is mainly dedicated to the production and marketing of sugar, both for sale to the local market and for export. It also produces and markets electrical energy from bagasse from sugarcane. It has more than one thousand permanent employees and more than five thousand temporary employees.