SUCAFINA HOLDING S.A.
Status: Completed investmentWhy disclosure?
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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
The family-owned Sucafina group specializes in the sourcing, primary processing, exporting and merchanting of coffee, mainly from Africa, Asia and Brazil. Sucafina's strategy focuses on growing its value-added business: premium and specialty coffees grown in an increasingly sustainable environment. Important aspects of this business are securing the quality and quantity of input, enabling traceability, increasing the amount of premium beans and ensuring that specific client requirements can be fulfilled (for example, regarding variety and origin requirements). With FMO's support Sucafina will further develop its upstream activities in East Africa.
What is our funding objective?
FMO will provide Sucafina a US$10 million term facility through the Infrastructure Development Fund for both the development of new and the acquisition of existing washing stations, processing facilities and warehouses, as well as the associated working capital needs of these upstream assets.
Why do we fund this investment?
By establishing washing stations together with processing and warehousing facilities, Sucafina can more easily develop value-added coffees, such as fully washed Robustas or high-quality gourmet Arabicas. Because off-takers are willing to pay a premium for value-added coffees, the coffee producing smallholder farmers receive a better price for their beans, which contributes directly to their household income. In addition, Sucafina's farmer support program (Sucastainability) ensures that good agricultural practices are applied by smallholder farmers, which results in higher yields, better quality beans and consequently more income. On a macroeconomic level, the coffee sector constitutes a major contributor to GDP and is a strong foreign exchange generator in East Africa.
More investments
| Date | Total FMO financing |
|---|---|
| 11/7/2022 | EUR 0.03 MLN |
| 9/3/2020 | EUR 0.10 MLN |
| 7/10/2020 | USD 17.00 MLN |
| 12/19/2019 | EUR 0.18 MLN |
| 8/24/2022 | EUR 0.06 MLN |
| 4/21/2022 | EUR 0.23 MLN |
- Country
- Global
- Sector
- Agribusiness, Food & Water
- Effective date
- 11/14/2014
- End date
- 3/2/2022
- Total FMO financing
- USD 10.00 MLN
- Funding
- Building Prospects
-
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+