Company name
Sigma Alimentos, S.A. de C.V.
Project number
12886-01
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
In implementation
Disclosed date
11/12/2019
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/13/2019
Approval date
12/13/2019
Signed date
05/20/2020
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 50,000,000
Currency
USD
Project scope and objective
The transaction consists of a revolving, uncommitted discount facility of up to US$50 million for IDB Invest's purchase from E-Factor (which acts as a financial intermediary) of accounts payable (credit rights) denominated in dollars (US$) or Mexican pesos (MXN) that fullfill certain eligibility criteria and that are confirmed by subsidiaries of Sigma Alimetos S.A. de C.V. ("Sigma" or "the Company") in the Dominican Republic, Costa Rica, Ecuador, Peru, Guatemala, Nicaragua, Honduras, El Salvador, and Mexico. The credit rights will be evidenced by invoices arising from the sale of goods or the provision of services by Sigma suppliers.
This transaction seeks to support Sigma’s supplier base in countries in Latin America and the Caribbean that lack supplier finance programs for the purchase of accounts payable to suppliers, including Small and Medium Enterprises (SMEs). The instrument will allow to incorporate suppliers into Sigma's value chain, giving them access to efficient commercial financing under competitive conditions (costs, terms, etc.) in countries such as, first, the Dominican Republic, Costa Rica, Ecuador and Peru, and then Guatemala, Nicaragua, Honduras and El Salvador, as these are countries where companies often struggle to finance their working capital. This transaction is in line with Sigma’s responsible supply strategy, which focuses on fostering the growth of its suppliers and mitigating its businesses’ risk factors, including supplier development programs that incorporate training and advisory.
Amendment on July 25, 2022
The transaction is including Sigma's supply chain, suppliers from the following countries: Argentina, Brazil, Chile, Colombia, Panamá and Uruguay.
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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
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesFor inquiries, comments and information requests about the project
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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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