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Overview

China Co-Financing Fund for Latin America and the Caribbean provides $20 million loan to Pantaleón S.A. for capex and working capital purposes

Commitments (Constant USD, 2023)$18,442,833
Commitment Year•2021Country of Activity•GuatemalaDirect Recipient Country of Incorporation•GuatemalaSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 10, 2021
Last repayment (originally scheduled)
Dec 17, 2029

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • IDB Invest (formerly Inter-American Investment Corporation or IIC)

Receiving agencies

Private Sector

  • Pantaleón S.A.

Loan description

China Co-Financing Fund for Latin America and the Caribbean contributes to USD 70 million loan to Guatemalan sugar cane producer Pantaleón S.A. for capex and working capital purposes in 2021

Interest type•UnknownMaturity•8 years

Narrative

Full Description

Project narrative

On December 10, 2021, the private sector institution of the Inter-American Development Bank (IDB), IDB Invest (formerly Inter-American Investment Corporation, or IIC) signed a loan agreement for a USD $70 million senior loan with agro-industrial company Pantaleón S.A., of which USD $20 million came from the China Co-Financing Fund for Latin America and the Caribbean (CHC). The other USD $50 million came from IDB Invest's own funds. Borrowing terms included an 8 year maturity period (final maturity: December 17, 2029). Per the IDB Project Database, the full USD $20 million was disbursed as of July 2025. The loan proceeds were to be used for agricultural fixed investment plans in order to increase agricultural productivity, reduce the need for irrigation per hectare, and reduce its greenhouse gas emissions. They would also be used for industrial fixed investment plans for the production of sugar. Lastly, loan proceeds were to be used for working capital. The project funded is expected improve Pantaleon's productivity as well as promote sustainable operations through climate-smart investments and practices. In accordance with IDB Invest's policies, an Environmental and Social Review Summary (ESRS) and a subsequent Environmental and Social Action Plan (ESAP) were executed for this project.

Staff comments

1. The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see Record ID#86526. 2. The IDB Invest project identification number is 12712-02 or IDBI-12712-02. The Inter-American Development Bank's Operation Number for the China Co-Financing Fund contribution to this loan is 5444/CH-GU.