Project detail - MLR FORESTAL DE NICARAGUA, S.A

MLR FORESTAL DE NICARAGUA, S.A

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Who is our client

MLR Forestal de Nicaragua, S.A. is a sustainable and traceable Agro-Forestry company located in northeast Nicaragua. Plantings started in 2010 and to date the Company owns and manages 2,462 ha teak and 411 ha mixed cocoa/teak. MLR is committed to operate under the best practices and standards of the industry where all its plantations are FSC/ UTZ certified and includes 25% - 30% of conservation area.

Funding objective

The proposed facility will allow MLR to maintain its current plantations, expand the plantations and build the associated commercial processing facilities.

Why we fund this project

Risk capital for forestry is very scarce.

Environmental and social rationale

MLR Forestal de Nicaragua is a category B+ client. FMO’s preliminary environmental and social due diligence indicates that the investment may have impacts 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: Labour and working conditions; - PS 3: Resource Efficiency and Pollution Prevention - PS 4: Community Health, Safety and Security; - PS 5 Land Acquisition and Involuntary Resettlement; - PS 6 Biodiversity Conservation; - PS 7 Indigenous People; and - PS 8 Cultural Heritage. FMO will periodically review the project’s compliance with the Performance Standards.

More investments

Date Total FMO financing
11/2/2020 EUR 0.06 MLN
Region
Latin America & The Caribbean
Country
Nicaragua
Sector
Agribusiness, Food & Water
Signing date
12/6/2019
Total FMO financing
USD 10.00 MLN
Fund
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+