Project detail - BUEN MANEJO DEL CAMPO S.A. DE CV

BUEN MANEJO DEL CAMPO S.A. DE CV

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Who is our client

Buen Manejo del Campo S.A. de CV (operating under the name Sistema.bio), incorporated in 2010 in Mexico, is a company that designs, manufactures, distributes, sells, and finances a range of prefabricated and modular biodigesters plus related accessories to small- and medium-sized farms. The company is currently active in Mexico, Kenya, India, Nicaragua, and Colombia.

Funding objective

The objective of the investment is to allow the company to continue its expansion in the Kenyan market specifically. The proceeds of the loan will primarily be used to fund working capital needs.

Why we fund this project

Sistema.bio provides smallholder farmers in rural areas access to a renewable source of energy (biogas), which can be used to replace fossil fuel and wood-fired cooking, and biofertilizer (bioslurry), which can be used increase crop yields and replace chemical alternatives. In addition, the replacement of wood and fossil fuels and chemical fertilizers plus the efficient management of animal waste mitigate GHG emissions and have significant health benefits. Moreover, use of biogas reduces the time and labour burden of fuelwood collection. Combined, this contributes to increases in household productivity and potential cost savings, leading to socioeconomic empowerment and ultimately spurring economic growth. By providing a loan to Sistema.bio, FMO helps to close a financing gap and supports the company to expand into new markets and increase their social and environmental impact.

Environmental and social rationale

Sistema.bio is an E&S category B company. Activities come with potential limited adverse risks associated with labour conditions and waste management. For this investment: IFC PS 1,2,3 and 4 applicable due to manufacturing of equipment, transport and use. IFC PS5 is not applicable as no new land is needed. IFC PS6 is not applicable as there are no material negative impacts on biodiversity. IFC PS7 is not applicable as the due diligence did not indicate any specific impacts on Indigenous People and/or vulnerable groups. IFC PS8 is not applicable as due diligence did not reveal any impacts on cultural heritage including cultural objects or places of spiritual importance.”

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Date Total FMO financing
12/18/2020 USD 1.35 MLN
Website client
http://sistema.bio/
Region
Africa
Country
Kenya
Sector
Energy
Signing date
12/18/2019
Total FMO financing
USD 1.00 MLN
Fund
Access to Energy Fund
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