Project detail - Sucafina Brasil Industria, Comercio E Exportacao LTDA

Who is our customer

Sucafina is a multinational coffee merchant, founded in 1977 and based in Geneva, Switzerland. The company is active across the coffee value chain ranging from farming to roasting and has the vision to be the Leading sustainable farm to roaster coffee company in the world by 2025.

What is our funding objective?

FMO will take an unfunded risk participation in a sustainability linked borrowing base facility, made available and arranged by Rabobank for Sucafina. The company will utilize the proceeds of the loan to fund sales of coffee to eligible buyers, purchase of coffee from eligible suppliers (including prepayments) and to finance warehousing and fobbing costs. Part of the loan proceeds will also be earmarked for covering margin calls.

Why do we fund this investment?

With this facility, Sucafina will be able to further expand its origination activities in Brazil and Colombia and thereby provide more direct support to coffee farmers. Through its sustainability activities, including the Farmer Hub initiative, Sucafina wants to increase the number of smallholder farmers reached globally from ~170,000 to 350,000 in 2025 and assist them with growing specialty coffees, diversifying into other crops and access to banking services and markets. FMO is closely supporting the Farmer Hub initiative through its capacity development program.

What is the Environmental and Social categorization rationale?

The E&S category is B+ (not changed since previous investment), due to largely reversible impacts, which can be mitigated through good management practices and Good International Industry Practice. The Company's assets are mainly primary processing units, warehouses and washing stations. There is no ownership of farms and/or acquisition of large tracts of land. The following IFC Performance Standards are applicable to this project: IFC PS1 (Assessment and Management of Environmental and Social Risks and Impacts), PS2 (Labor and working conditions), PS3 (Resource Efficiency and Pollution Prevention), and PS4 (Community Health, Safety and Security). PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is triggered mainly due to the potential impact of the primary supply chain. PS5 (Land Acquisition and Involuntary Resettlement), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) are considered not applicable to this project.