COMERCIAL INTERNACIONAL EXPORTADORA
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Comercial Internacional Exportadora S.A. (CISA), established in 1952, is the main operating company of the Mercon Coffee Group (MCG) in Nicaragua. MCG is one of the world’s leading coffee merchants. It has sourcing operations in Central America, Brazil and Vietnam and a significant share in sustainable and quality coffees. Mercon is involved in all aspects of the coffee supply chain from primary production, production and distribution of seedlings, sourcing and processing of coffee from third parties to the delivery and export of green coffee. Mercon has developed into a supply chain manager with upstream operations and producer engagement in origin countries and strong relationships with premium coffee buyers. The coffees that Mercon sources are mostly certified (Utz, 4C, RfA, C.A.F.E. Practices) and deliveries are based on long term relationships between Mercon and the producers.
What is our funding objective?
FMO will provide a USD 10 million facility. The funds are utilized for the improvement and expansion of the San Carlos coffee mill of CISA in Nicaragua.
Why do we fund this investment?
CISA is the market leader in Nicaragua with close ties with over 6,000 (smallholder) producers who, through the various programs that CISA has, are able to increase their yields, become more climate resilient and can stabilize their revenues. This helps coffee producers to increase their incomes.
What is the Environmental and Social categorization rationale?
FMO’s environmental and social due diligence indicates that the investment will have impact which must be managed in a manner consistent with the following Performance Standards: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts PS 2 – Labor and working conditions PS 3 – Resource Efficiency and Pollution Prevention, PS 4 – Community Health, Safety and Security and PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources. If FMO’s investment proceeds, FMO will periodically review the project’s ongoing compliance with the Performance Standards. The Company is operating in a sustainable manner and is implementing Best Practices in the existing coffee mill. The other Performance Standards (PS 5, 7 and 8) are not applicable because there has been neither physical nor economic displacement for the land acquisition of the mill - willing buyer, willing seller arrangements (PS 5), nor any impact on indigenous people (PS 7) or cultural heritages.
More investments
| Date | Total FMO financing |
|---|---|
| 5/19/2022 | USD 25.00 MLN |
| 9/20/2018 | USD 10.00 MLN |
- Website customer/investment
- http://www.merconcoffeegroup.com/about-us/
- Region
- Latin America & The Caribbean
- Country
- Nicaragua
- Sector
- Agribusiness, Food & Water
- Effective date
- 10/12/2017
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+