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IDB Invest Supports Mercon to Strengthen Latin America’s Coffee Sector, Promoting Sustainability and Inclusion
05/21/2021 Since 4 months

IDB Invest will finance the Mercon Group with up to 50 million dollars to support the Latin-American coffee´s value chain, especially in Guatemala, Honduras, Colombia, Peru and Brazil. This investment is part of a 500 million dollars regional syndicated loan facility, structured, managed and administered by the Dutch bank Rabobank.

The project seeks to raise the standard of living of the coffee-growing communities in the region, promoting a positive social and environmental impact. It will directly support small and medium rural coffee producers in Latin America. The investment will facilitate access to financing for producers to guarantee the sustainability of their businesses and protect jobs.

The financing price could include a discount based on compliance with the sustainability performance indicators, which will benefit Mercon’s LIFT program focused on supporting coffee producers to improve their productivity, incorporating environmental and social sustainability practices in production of coffee, and promoting the “Fundacion Semillas para el Progreso” that contributes to the general well-being of coffee communities through education. IDB Invest will be the sustainability coordinator for the operation, together with IFC, Rabobank and ING Capital LLC.

IDB Invest will support, through technical assistance, the Mercon’s LIFT program on the pilot test of a price protection mechanism for coffee producers to help them manage financial risks through hedging tools. It will also design tools that facilitate the implementation of a carbon credit scheme that results in economic benefits and helps large coffee roasters meet their carbon neutrality commitments. Both components of technical assistance will incorporate a gender perspective.

This post is also available in: Spanish Portuguese (Brazil)

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