Status: Approved investment
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FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more

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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

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.

What is our 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 do we fund this investment?

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”.

What is the Environmental and Social categorization 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
Publication date
Effective 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)