Compañía Cervecera de Nicaragua SA (CCN) and Compañía Recicladora de Nicaragua SA (CRN)
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.
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
Alvarado Blando, Gloriana
USD $ 30,000,000
Project scope and objective
The IDB Invest loan will be used to (i) finance production line expansions in Compañía Cervecera de Nicaragua SA (CCN), (ii) improve and expand CCN infrastructure, (iii) acquire machinery from Compañía Recicladora de Nicaragua SA (CRN), (iv) expand CRN infrastructure, (v) as working capital and to finance the future growth of CCN and CRN.
The project comprises two secured loans for up to US$30 million, which are expected to consist of: (i) Loan I for CCN for a total of up to US$20 million; and (ii) Loan II for CRN for a total of up to US$ 10 million.
CCN has a strong market position; its financial results are satisfactory and consistent with its market position. Its senior management is successful and experienced, and its partners have extensive experience in the sector and play an important role in the Guatemalan and Costa Rican markets.
The transaction involves Inversiones Cerveceras Centroamericanas, SA (INCECA) as guarantor for both Loan I and II. CCN will additionally be a co-borrower in Loan II, given that CRN is still a small company and its operating cash flow and profitability are under development.
CCN is currently 99.7% a subsidiary of INCECA and leads the beer market in Nicaragua. It also sells the Heineken, Miller, Bliss, Sol, Mytos, Rubia and other imported brands. The vast majority of its beer sales revenue derives from its two own brands: Toña and Victoria. In 2017, INCECA decided to participate—through subsidiary companies in a commercial partnership with local and regional entrepreneurs—as a shareholder in the company Recicladora Nacional (RN), creating the new corporation CRN, which is 50% an indirect subsidiary of INCECA, the guarantor of the loans.
In 2009 and 2013, loans for US$7 million and US$5 million respectively were approved for CCN. In 2017, it was a Co-Borrower in the transaction with CDN, a distribution company that is part of the Group. On that occasion, the approved loan was for US$13 million, used to build a distribution center.
For inquiries, comments and information requests about the projectRequest information
Alternatively, you may also use the following contact information:
IDB Invest Contact
1350 New York Ave NW, Washington, DC 20005