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Who is our client

Nicaragua Sugar Estates Limited (also known as SER San Antonio) was incorporated 1890 in Nicaragua and is the largest sugar player in Nicaragua. It produces and sells sugar and other related products like molasses and energy.

Funding objective

FMO intends to provide a USD 18.2 mln senior loan to NSEL. The funding will contribute to the renewal of NSEL's sugar cane plantations and for capital improvements to be made to the sugar mill. Furthermore, the financing will be used to improve the company's balance sheet by better matching the tenor of its assets and liabilities.

Why we fund this project

Sugar is one of the primary crops and sources of employment in Nicaragua. NSEL alone employs approx. 4,500 individuals during the harvest season. NSEL has become a showcase model in the region for sustainable sugar production. The company was the first mill in Nicaragua to receive the Bonsucro certification and 5th in Central America. In 2017 NSEL became the first mill in the world to receive the Fair Trade certification. NSEL is an important employer in Nicaragua and the sugar industry is a major contributor to the Nicaraguan economy. The Project supports responsible and sustainable sugar cane production and processing. Hence, the Project contributes to Sustainable Development Goals “Decent Work and Economic Growth” and “Responsible Consumption and Production”.

Environmental and social rationale

FMO’s environmental and social due diligence indicates that the intended 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 Performance Standard 7 (Indigenous People). 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 Fair Trade and Bonsucro certified showing their commitment to sustainable agribusiness. The Company will neither expand the cultivated area nor the production capacity. Therefore, Performance Standards regarding land acquisition (PS 5), biodiversity (PS 6) and cultural heritage (PS 8) are not applicable. The Company will monitor any development, which would trigger these Performance Standards through the Environmental and Social Management System.

Latin America & The Caribbean
Agribusiness, Food & Water
Signing date
Total FMO financing
USD 18.20 MLN
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)