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Industrial Comercial San Martín S.A.

Customer

Industrial Comercial San Martín is a Nicaraguan producer and distributor of beef meat and by-products. It was incorporated in Nandaime, Nicaragua in 1973 and is the largest player in this industry in Central America, as well as the largest exporter in Nicaragua. It holds livestock in its own feedlots, processes and sells meat to-gether with other related products like bone meal, and produces biogas.

San Martin’s production model is focused on self-sustainability & ecofriendly production by generating its own renewable energy using its two digestors and biogas power plants and by substituting most of the fossil fuel usage in the production process.

Funding Objective

The DEG debt financing is used for investments in Industrial Comercial San Martín’s new feedlot facilities and in a new alimentation plant, thereby stabilizing the company’s operations.

Reasons for financing

Nicaragua is the biggest meat producer in Central America and meat production is one of the most important economic activities in the country. Industrial Comercial San Martín is the primary source of employment in Nandaime. The company employs 1.300 individuals and cooperates with more than 2.000 small farmers in the region.

The company’s investments will contribute to a continuing enhancement of industry competitiveness – via the company’s new feedlots and new alimentation plant – and to further improvements of locally produced prod-uct quality. The financing contributes to DEG’s strategy of supporting local private sector growth in Latin America.

Region Latin America
Country Nicaragua
Sectors Agribusiness
Signing Date 07-2021
Funding USD 13 Million
Source of Funding DEG's own funds
Environmental & Social Category
Risk categorization on environmental and social impacts:
A = High risk; Investments with significant potential adverse social or environmental impacts that are diverse, irreversible or unprecedented. These impacts cannot be mitigated or remedied or only at significant costs.
B+ = High Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific addressed through mitigation measures, but having specific features which can have potential significantly more adverse social or environmental impacts.
B = Low Medium Risk; Investments with limited potential adverse social or environmental impacts that are site-specific and readily addressed through well-known mitigation measures.
C = Low Risk; Investments with minimal or no adverse social or environmental impacts.
FI-A = Financial Institutions High Risk; Financial Institutions with business activities or projects with significant potential adverse social or environmental impacts or risks.
FI-B =Financial Institutions Medium Risk; Financial Institutions with business activities or projects with limited potential adverse social or environmental impacts or risks.
FI-C =Financial Institutions Low Risk; Financial Institutions with business activities or projects with minimal or no adverse social or environmental impacts or risks.

B+
Website of the customer www.sanmartin.com.ni
Further investments by year 2024;

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