Company name
Grupo Inversiones Sanford
Project number
CO1093A-01
N/A
E&S category
N/A
Country
Colombia
Sector
Social Infrastructure
Status
Completed
Disclosed date
06/14/2001
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
07/20/2001
Approval date
07/20/2001
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
INO Portfolio Management (PTM)
Investment type
Syndicated amount
N/A
Financing amount
N/A
Currency
USD
Project scope and objective
The project, which is located in the Mamonal industrial area of Cartagena, Colombia involves the expansion of an existing bioriented polypropylene production plant. The expansion involves the installation of a new production line that will allow the company to increase production by at least 75%, from 20,000 tons/year to 35,000 tons/year.
Scarce availability of long-term financing. Currently, long-term financing is hard to obtain in the Colombian financial market. By providing long-term financing, the IIC will enable Biofilm to maintain a solid financial structure. Through its participation, the IIC will be complementing the foreign-currency debt financing the company has received from foreign lenders and the local-currency bond issue listed on the stock exchange, which have only partially covered the Company's requirements.
Technological modernization: The project is intended to expand the company's production capacity through the installation and implementation of a cutting-edge production line able to produce 15-micron biaxially oriented polypropylene film (15 microns is the most advanced thickness). This line will enable Biofilm to remain one of the leading producers in the world market.
Currency-generating industry: The bulk of the new production line's capacity will be used for export-oriented purposes, thereby increasing Colombian exports by up to some US$30 million per annum.
Export diversification: Since Biofilm's products are raw materials for other industries, they are considered to be intermediate goods. This transaction will make it possible to increase supply and facilitate the export diversification of nontraditional products.
Increase in regional trade: The company's main export markets are the countries of the Andean region. The increase in the company's export capacity will boost utilization of the mechanisms and benefits established to promote trade between countries in this region.
Local integration and increase of value added: The main raw materials used by the company come from Colombia. This favors local integration and increases the value added of local raw materials.
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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
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PHONE
+1(202)-566-4566
ADDRESS
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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
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