IDB Invest will finance Pantaleón SA, one of the largest sugar mills in Guatemala (sixth world’s largest sugar exporter country) and Central America, with 70 million dollars. IDB Invest will contribute 50 million and the other 20 will be provided by funds managed by the IDB Group.
The funds will be used to finance agricultural and industrial fixed investment plans and their working capital needs. The project will support Pantaleón in creating efficiencies both in its production and in the use of resources in sugarcane cultivation, through the combination of climate-smart practices and technology, seeking to reduce its exposure to climate volatility and international prices. Pantaleón estimates that it will be able to increase its agricultural productivity, reduce the need for irrigation per cultivated hectare, and reduce its greenhouse gas emissions.
The project will be benefitted from technical advice from IDB with the aim of supporting the company to reduce its carbon footprint in its agricultural and industrial operations, through innovative measures of energy efficiency and climate-smart agriculture.
With this transaction, IDB Invest promotes improving the sustainability of a sector with an important economic and social role in Guatemala, which employs more than 334,000 people, especially in rural areas of the country.
This post is also available in: Spanish