Company name
Ingenio La Unión S.A.
Project number
16246-01
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
Guatemala
Sector
Agribusiness
Status
Proposed
Disclosed date
10/08/2026
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
11/13/2026
Approval date
N/A
Signed date
N/A
Sponsoring entity
Finca Agropecuaria Tehuantepec, S. A., Los Tarros, S. A., El Carrizal, S. A., Agropecuaria Catome, S. A.
Investment Operations Department Contact
Corporates Division
Investment type
Syndicated amount
USD $ 50,000,000
Financing amount
USD $ 50,000,000
Currency
USD
Project scope and objective
The proposed financing to Ingenio La Unión, S.A. (“Ingenio La Unión,” the “Company,” or “ILU”), one of Guatemala’s leading sugar producers, consists of a long-term senior loan of up to US$100 million (the “Loan” or the “Financing”), structured as follows: (i) up to US$50 million to be funded by IDB Invest; and (ii) up to US$50 million to be mobilized by IDB Invest. The proceeds of the Loan will be used to finance fixed investments and working capital associated with the development of a biomass-fired power plant that will use sugarcane bagasse as its primary energy source. The plant will partially meet the Company’s energy needs and inject renewable energy into the national grid under the contract awarded pursuant to the PEG-5 tender (the “Project”).
The main development objectives of the Financing are to: (i) increase renewable energy generation from biomass through the use of sugarcane bagasse; and (ii) support the decarbonization of the Company’s operations through renewable energy generation, while contributing to a cleaner and more diversified energy matrix in Guatemala.
For information requests about the project.
Request informationLearn more about how we provide private-sector solutions in the region .
Contact information
For information requests about the project.
Request informationAlternatively, you may also use the following contact information :
Client Contact
Information not available on IDB Invest website may be requested by mailing to 1350 New York Ave NW, Washington, DC 20577, by e-mailing [email protected] or by calling +1(202)-566-4566.
Individuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing [email protected] 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 [email protected] or [email protected] or calling +1(202) 623-3952.
IDB Invest has zero tolerance to reprisal or retaliation against anybody who voices its opinion or opposition to IDB Invest-financed projects.
For 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.
INGENIO LA UNION -ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)
143.4 Kb
INGENIO LA UNION - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
368.6 Kb