Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Mexico
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Inter-American Investment Corporation (IIC)
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-08-16
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Nemak, S.A.B de C.V ("Nemak")
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Industry and Trade
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2017-06-22
Disclosure Date: 2016-07-13
Supply Chain Financing - Nemak
IIC-ME4104A-01

Project Description
This is an uncommitted facility, for which the IIC makes funds available for rediscounting the credit claims of Nemak's Mexican suppliers (mainly SMEs) through the E-Factor Network ("EFN") electronic platform and financial intermediary E-Factor Diez ("EFD"). In this type of operation, the IIC evaluates the environmental and social risk presented by the suppliers and the buyer's capacity to manage its suppliers' environmental and social performance. Potential environmental and social impacts and risks related to the project could include: i) generation of solid and liquid waste and atmospheric emissions resulting from industrial operations; ii) leaks and spills of hazardous materials; iii) significant water and energy consumption; vi) occupational safety and health risks at the workplace; and vii) supply chain impacts. According to the IIC Environmental and Social Sustainability Policy, this is a Category B project, as its risks and impacts are expected to be limited, reversible, and can be mitigated via measures that are available in the context of the operation.
Investment Description
The requested financing consists of a line of credit of up to US$40 million. This is an uncommitted facility, for which the IIC makes funds available for rediscounting the credit claims of Nemak’s Mexican suppliers (mainly SMEs) through the E-Factor Network (“EFN”) electronic platform and financial intermediary E-Factor Diez (“EFD”).
Contact Information
For inquiries about this project, contact divulgacionpublica@iadb.org. ACCOUNTABILITY MECHANISM OF IIC The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).