Fernando Capellan a well-respected Dominican entrepreneur is the founder of Grupo M. He and other family members are the controlling shareholders who, together with other senior management officials, hold 82% of the outstanding share capital. Other shareholders include Grupo popular and other members of the business community. Grupo M fully owns CODEVI.

Project cost is estimated at US$20 million and will be financed by an IFC A Loan of up to US$10 million and with internal cash generation.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

Grupo M’s main production facilities are located in two industrial zones developed by the group in Santiago, Dominican Republic. The Haiti Project is located on the northern border of the Dominican Republic and the Republic of Haiti on the outskirts of the towns of Ouanaminthe (Republic of Haiti, population 56,000 ) and Dajabon (Dominican Republic).

The project will have a strong development impact. At full development, over a two year implementation period, the expansion project would generate 4,000 additional skilled jobs. CODEVI''s payroll, higher than the minimum wage, is the only source of stable livelihood for the 7,000 workers and their dependents, whose number is now estimated at approximately 60,000 in the town of Ouanaminthe and its surroundings. It is estimated that another 30,000 people live in Ouanaminthe, deriving their livelihood from indirect jobs associated with CODEVI''s operations. Furthermore, CODEVI''s payroll is made up of approximately 50% women who are amongst the most vulnerable segments of Haitian society. The project will therefore provide a social safety net to the current workers and their dependents.

This investment is also expected to send a positive signal on the creditworthiness of private sector investment in Haiti and on the potential of the textile sector in the country. This project will contribute to the creation of new growth pole built entirely on the private sector initiative.

The IFC approach in this investment is also driven by a focus on delivering impact on the ground to the community that has agglomerated around the jobs generated by CODEVI. To ensure delivery, IFC has also systematically identified upfront partners (with and through Ashoka and other NGOs) to identify and respond to community needs with technologies and businesses to deliver BOP goods and services. A pilot project managed by Ashoka with CODEVI''s support has already reduced the cost of basic goods and services to the workers and families, thus boosting disposable income and tangibly reducing poverty levels.

Even though CODEVI is a well -established operation with a long track record of delivery to highly demanding clients, commercial banks are reluctant to provide long-term financing to Haitian-based operations and limit their involvement to trade finance at high spreads.

IFC has been, and remains, the only source of long term financing which is crucial to CODEVI''s ability to undertake capital intensive projects such as the construction of industrial buildings and related infrastructure.
Consolidation of CODEVI''s performance through continued IFC support (and potential partners) can only enhance the prospects of Haiti as an attractive garment manufacturing destination, as CODEVI continues to grow, with a skilled and motivated labor force.

IFC will also help the Company to improve its Environmental and Social practices.

Please refer to ESRS

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.