Nicaragua Sugar Estates Limited (NSEL)

Customer

Nicaragua Sugar Estates Limited (also known as SER San Antonio) was incorporated in Nicaragua in 1890 and is the largest sugar player in Nicaragua. It produces and sells sugar and other related products like molasses and energy.

Funding Objective

Long term debt of DEG for investments into sugarcane plantations, sugar mill and refinancing of existing short-term debt in order to improve the company's balance sheet by better matching the tenor of its assets and liabilities.

Reasons for financing

Sugar is one of the primary crops and sources of employment in Nicaragua. NSEL alone employs approx. 4,500 individuals during the harvest season. NSEL has become a showcase model in the region for sustainable sugar production. The company was the first mill in Nicaragua to receive the Bonsucro certification and 5th in Central America. In 2017 NSEL became the first mill in the world to receive the Fair Trade certification. NSEL is an important employer in Nicaragua and the sugar industry is a major contributor to the Nicaraguan economy. The Project supports responsible and sustainable sugar cane production and processing. Hence, the Project contributes to Sustainable Development Goals “Decent Work and Economic Growth” and “Responsible Consumption and Production”.

DEG’s role is to supports a well-known client and important player and employer in the agro-industrial sector in Nicaragua: with a long-term financing and partnership (comprehensive business support service cooperation ongoing) to support Nicaragua Sugar Estates Limited in its business strategy and its social / environmental responsibility activities.

DEG is arranging the USD 75 million financing with its strategic partners EFP, FMO and Proparco.

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