Skip to main content

Company name

Latin America Kraft Investment, Inc.

Project number

14334-01

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
tooltip

B

Country

Regional

Sector

Manufacturing

Status

Proposed

Disclosed date

09/05/2024

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
tooltip

01/17/2025

Approval date

12/02/2024

Signed date

12/06/2024

Sponsoring entity

N/A

Investment Operations Department Contact

Corporates Division

Investment type

Syndicated amount

USD $ 15,000,000

Financing amount

USD $ 45,000,000

Currency

USD

Project scope and objective

Latin America Kraft Investment, Inc. (“LAKI”), headquartered in Panama, is engaged in the design, prepress, production, and marketing of packaging materials made from a variety of materials. LAKI operates in Central America, Mexico, and the United States and is the holding company of Sigma Q.

This transaction consists of short-term working capital and supply chain financing (the “Project”) to support LAKI’s post-pandemic recovery and growth in six of its companies: Cajas y Empaques de Guatemala S.A., Compañía Centroamericana de Papeles y Cartones S.A., and Litografía Byron Zadik, S.A. in Guatemala; Cartonera Centroamericana S.A. de C.V. and Specialty Products S.A. de C.V. in El Salvador; and Cartonera Nacional S.A. in Honduras. These plants produce corrugated, folding carton, luxury packaging, and flexible packaging.

The financing of up to US$20 million consists of a committed revolving loan of up to US$15 million and an uncommitted revolving reverse factoring facility of up to US$5 million. These funds will be used to finance (i) working capital needs and support the importation of goods; and (ii) the financing of LAKI’s MSME suppliers through the discounting or monetization of their receivables from the sale of goods and/or services, respectively.

For inquiries, comments and information requests about the project

Request information

Learn 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.

LAKI - ENVIROMENTAL AND SOCIAL ACTION PLAN (ESAP)

133.1 Kb

LAKI - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)

215.0 Kb

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region .

Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information :

Client Contact

EMAIL

atorres@sigmaq.com

PHONE NUMBER

n.a

POST OFFICE ADDRESS

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region .