| Project description |
Pantaleon Sugar Holdings Company Limited (Pantaleon or the company) is the largest sugar producer in Central America, with mills located in Guatemala, Nicaragua and Honduras. It supplies raw and refined sugar to the domestic market in Guatemala, raw sugar to the domestic market in Nicaragua, raw sugar in Honduras, and exports raw and refined sugar to the world market including the U.S. In addition, Pantaleon’s co-generation facilities supply electricity for sale to the national power networks in Guatemala, Nicaragua and Honduras.
The purpose of the investment is to support Pantaleon’s ongoing investment program which includes:
- expanding the company’s sugar production and electricity co-generation facilities in Guatemala; and
- expansion of ethanol production in Guatemala and a new ethanol plant in Nicaragua |
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| Project sponsor and major shareholders of project company |
| The project sponsor is Pantaleon, a private company based in Guatemala, founded over 100 years ago. Pantaleon is majority owned by members of the Herrera family. |
| Total project cost and amount and nature of IFC's investment |
| The total amount of Pantaleon’s investment program is estimated at $130 million. The proposed IFC investment includes a combination of loans and an equity investment of up to $60 million in the Company (or one of Pantaleon’s subsidiaries) for IFC’s own account. The proposed IFC investment also includes up to $40 million in B loans. |
| Location of project and description of site |
| Pantaleon has four sugar mills: Pantaleon, Concepcion, Monte Rosa and La Grecia. The Pantaleon and Concepcion mills are located in the south of Guatemala, in the Department of Escuintla, approximately 53 and 37 miles from Guatemala city respectively. Monte Rosa is located in the Department of Chinandega, approximately 92 miles from Managua. La Grecia is located in Choluteca, Honduras. |
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| Anticipated development impact of the project |
The investment is expected to have the following development impacts:
- support the financial sustainability of an important contributor to a sector of vital importance to Guatemala, Nicaragua and Honduras’ economy, as sugar is one of the main exports in the region;
- help maintain employment levels in areas highly dependent on cane-growing and milling for income;
- increase volume of cane purchased from independent growers of cane;
- support renewable energy produced both by cogeneration and ethanol;
- support the company’s corporate social responsibility efforts through increasing contributions (based on sugar produced) to Fundación Pantaleon; and
- increasing tax revenues. |
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| IFC's expected development contribution |
IFC’s expected development contribution may include:
- providing long-term financing;
- assistance in helping the company comply with IFC’s Environmental & Social Performance standards, which is also likely to have a demonstration effect within the industry;
- providing technical assistance in the areas of environment and sustainability; and
- providing global industry and corporate governance expertise. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. Corrective actions identified to address these issues are listed in the attached Environmental and Social Action Plan (ESAP).
To view the environmental documents for this project, click here |
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| For inquiries about the project, contact: |
Enrique Goicolea
Diagonal 6, 10-31 Zona 10
Centro Gerencial Las Margaritas
01010 Guatemala, Guatemala
Telephone: (502) 2 277-5100
Fax: (502) 2 334-7238, 2 332-1192
Website: www.pantaleon.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Contact Persons (in each of the 3 countries):
Pantaleón Guatemala:
Name: Juan Carlos Acosta G.
Address: Km 86.5 carretera al Pacífico. Siquinalá. Escuintla
Phone number: 7879 4020
Time: 07:00 - 18:00
Pantaleón Nicaragua:
Name: María Alejandra Zurita
Address: Kilómetro 148.5, carretera El Viejo – Potosí. El Viejo. Chinandega
Phone number: 342 9040
Time: 07:00 - 18:00
Pantaleón Honduras:
Name: Fredy Arias R.
Address: Marcovia. Km 21 carretera a Cedeño. La Grecia. Choluteca
Phone number: 782 0627 / 29
Time: 07:00 - 18:00
Local disclosure will be made available at the following locations:
Nicaragua – Chinandega
Name: Instituto Nacional Miguel Angel Ortez y Guillen
Address: Carretera al Viejo, frente a Colonia Santa Ana
Phone number: (505) 3417735 ó (505) 3410941
Time: 09:00 – 17:00
Nicaragua - El Viejo
Name: Casa Cural de la Basílica del Viejo
Address: Del mercado central 1 calle al Este.
Phone number: (505) 3442285
Time: 09:00 – 17:00
Nicaragua – nuevas áreas de expansión
Name: Centro de Salud El Higueral
Address: Villa 15 de Julio, 200 metros, Carretera a Somotillo
Phone number: no hay teléfono disponible
Time: 09:00 – 17:00
Guatemala - Santa Lucía Cotzumalguapa
Name: Biblioteca Municipal del Banco de Guatemala
Address: 5ª. Calle 3-39 zona 1
Phone number: (502) 78825443 Extensión 120
Contact: Luz María Tubac
Time: 09:00 – 17:00
Guatemala – Escuintla
Name: Centro Cultural de Escuintla
Address: 3ª. Avenida 9-00 zona 1
Phone number: (502)78892219
Contact: Luis Maldonado
Time: 09:00 – 17:00
Guatemala – Siquinalá
Name: Biblioteca Municipal
Address: 8ª. Calle 2-36 zona 1
Phone number: (502) 78802387 ó (502) 78802103/04
Contact: Gorety Soma
Time: 09:00 – 17:00
Honduras – Choluteca
Name: Centro Comunal de la Iglesia Espiritu Santo
Address: Aldea de Monjaras, Marcovia, Choluteca, Honduras
Phone number: (504) 7762120
Contact: Mery Flores Soriano
Time: 09:00 – 17:00
In addition, the ESRS and ESAP will be displayed on the corporate web site (www.pantaleon.com).
Announcements will be published in the following national newspapers:
- Guatemala - Diario Prensa Libre
- Nicaragua - La Prensa y El Nuevo Diario
- Honduras – El Heraldo |
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