Company name
Jamaica Broilers Group Limited
Project number
12125-01
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
Regional
Sector
Agribusiness
Status
Inactive
Disclosed date
11/08/2017
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/11/2017
Approval date
12/13/2017
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 17,000,000
Currency
HTG, USD
Project scope and objective
The proposed operation consists of the following financing facilities:
1. IDB Invest Guarantee: IDB Invest will issue a local currency guarantee for up to an equivalent amount of US$11 million in favor of Sagicor to provide competitive financing to Jamaica Broilers Group Limited (“JBGL” or the “Company”) in local currency. In turn, Sagicor will provide JBGL a 3-year tenor senior loan in local currency for up to an equivalent amount of US$10 million to finance its working capital needs, which consist in chicks, feeds, services and financing provided to farmers, in order to support the Company´s growth.
2. IDB Senior Loan I: The IDB will provide to Haiti Broilers S.A. (“HB”) a 2-year senior loan in local currency for up to an equivalent amount of US$2 million to provide working capital financing to small and medium farmers (of broilers and layers) that supply HB. The local currency will be offered by using the exchange rate hedge offered by TCX.
3. IDB Senior Loan II: The IDB will provide to HB an 8-year senior loan in local currency for up to an equivalent amount of US$3 million to finance the acquisitions of the land where HB currently has its chicken houses. The local currency will be offered by using the exchange rate hedge offered by TCX.
JBGL began operations 60 years ago and is the leading poultry manufacturer in Jamaica with an estimated market share of 40% and the largest poultry producer in the Caribbean. JBGL is a vertically integrated company producing and selling chicken meat and processed chicken meat products, table eggs, fertile eggs, baby chicks, animal feed, and other agricultural products. In the year ended in April 2017, JBGL sold 45 million tons of poultry, 155 million tons of animal feed and 15 million chicks, having revenues for around US$345 million.
The Company has grown over the years expanding its operations to United States and Haiti, establishing HB in 2010 in a joint venture with Haiti Partners S.A., a local Haitian partner. HB established its production facilities in 2012, focused on table eggs, broiler meat, chicks and feed. Currently, accounts for 4,0% of JBGL’s consolidated revenues, totaling US$12.6 million in the year ended in April 2017.
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Client files
This section provides the key environmental and social assessment documents produced by the client for this project.
ENVIRONMENTAL AND SOCIAL ACTION PLAN ESAP-JAMAICA BROILERS.PDF
140.6 Kb
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Contact information
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Request informationAlternatively, you may also use the following contact information :
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.
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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.
ENVIRONMENTAL AND SOCIAL REVIEW
38.8 Kb