35842 - CASEIF III Ltd.

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

35842

Company Name

CASEIF III LIMITED PARTNERSHIP (CASEIF III LP)

Date SPI Disclosed

Dec 16, 2014

Country

Central America Subregion

Region

Latin America and the Caribbean

Projected Board Date

Jan 19, 2015

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 13, 2022

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Feb 27, 2015
Signed : May 22, 2015
Invested : Sep 28, 2015

Sector

Venture Capital Fund

Project Description

The project entails a US$10 million equity commitment, not to exceed 20% of total commitments, in CASEIF III L.P. (the “Fund”), a ten-year closed-end private equity fund seeking to raise US$50 million to make mezzanine and equity investments in 12-15 small and medium enterprises (“SMEs”) in Central America, the Dominican Republic, and Colombia.

Sponsor / Cost / Location

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

Development Impact

(i) Access to finance for SMEs: The Fund is expected to provide much needed mezzanine and equity financing to 12-15 SMEs in Central America and neighboring countries to support their growth and expansion. The lack of private capital continues to be a primary inhibitor to SME growth in developing economies, and in particular IDA countries. IFC's commitment to the Fund will help develop the private equity asset class. (ii) Job creation: The Fund is expected to generate strong job creation, and in particular in low-income, IDA, and/or violence-affected communities. (iii) Private sector development: The Fund will strengthen investees from a financial, operational, management, and ESG standpoint, and will thereby promote sustainable growth of SMEs, create strong leadership, instill good practice business models, and promote transparency. (iv) Poverty alleviation: Central America faces staggeringly high poverty rates, particularly in the two IDA countries of Nicaragua, with a poverty rate of 46%, and Honduras, with a poverty rate of 60%. IFC's commitment will help LIM continue its mission of reducing poverty through private sector growth.

(i) Fund structuring and governance: IFC will play an important governance role by ensuring compliance with international best practices for both fund structuring and terms and, subsequently, through its active participation on the Fund's advisory committee. (ii) Demonstration effect: An IFC commitment to the Fund will act as a signal to the investor community that IDA and FCV affected countries in Central America are attractive markets for commercially-minded investors. The increase of investment capital in the region will eliminate a growth-limiting factor and allow local SMEs to continue growing into strong, sustainable, job-creating establishments. Also, the Fund will be one of only a few in the market to provide local structured credit exposure involving SMEs in the region. Raising awareness of SME equity opportunities in Central America is likely to lead to a positive demonstration effect, potentially leading to additional investments in the sector. (iii) IFC Performance Standards: An IFC commitment will help LIM establish best practices in environmental, social, and governance standards. Further, IFC will help LIM apply IFC's Performance Standards to each investee company.The Fund's adherence to World Bank and IFC's Environmental and Social (E&S) standards will raise the bar for strong E&S practices amongst funds and investees in Central America. (iv) Catalytic role: IFC's support will act as a "stamp of approval" for LIM, CASEIF III, the strategy, and the market given IFC's experience and brand name in emerging markets private equity, which will be critical for LIM going forward in raising capital from commercial investors and to become a sustainable institution in the region.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Not Applicable	Yes/No		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project involves an IFC investment in a Fund that will make investments in companies in the LAC region, primarily in Central America, the Dominican Republic, and Colombia. The Fund is not targeting any specific sector and will likely invested in technology, food, retail, education, materials, manufacturing, and energy. The Environmental and Social (“E&S”) risks are related to the potential impacts of the Fund’s portfolio, which due to the size and likely sectors of investment are considered to be of medium E&S risks. As such the project was categorized as FI-2 according to IFC’s Sustainability Framework. The applicable E&S requirements include the IFC's Exclusion List, the national E&S laws and regulations and the IFC's Performance Standards. The Fund's ESMS covers all aspects of the IFC Performance Standards and will be required to make a few minor adjustments. The Fund will also be required to ensure compliance of all sub-projects with the IFC Performance Standards and applicable local laws and regulations by screening against the standards and/or working investees to implement a satisfactory action plan to come into compliance within a reasonable time frame. Additionally, IFC will review the implementation and performance of the Fund’s ESMS for the first few sub-projects, prior to the Fund’s investment in them, to ensure that the system is adequate to identify and manage the E&S impacts. IFC will also review all subsequent investments that are of high E&S risk, if any.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
A&A (Novae)	Colombia	O-MC - Retail Payment Points
CCSD EM	Ecuador	Q-BA - Retail (Including Supermarkets, Grocery Stores, etc.)
Lagarde	Dominican Republic	Q-BA - Retail (Including Supermarkets, Grocery Stores, etc.)
AMPM Panama	Panama	Q-BA- Grocery Retail (Supermarkets, Hypermarkets, Convenience Stores etc.)
Be Fit	El Salvador	X-XX- Other (For Non-Investment Projects)
BITEL	Honduras	N-AA- Broadband - Retail
CCSD - Pandora	El Salvador	Q-BZ- Other Retail
Delifrost	Costa Rica	F-AE- Fruit and Vegetable Preservation or Processing (Canning, Freezing, Drying, Jams, etc.)
IATAI - Novae	Colombia	O-MC- Retail Payment Points
Paradise Ingredients	Costa Rica	F-AE- Fruit and Vegetable Preservation or Processing (Canning, Freezing, Drying, Jams, etc.)

The key E&S risks and impacts of the project is for the fund manager to identify the gaps with IFC Performance Standards and work with the portfolio companies to address such gaps in a timely framework. The previous funds had focused on low to medium E&S risk companies, particularly in manufacturing and agribusinesses, and the fund manager's E&S due diligence did not follow the IFC Performance Standards but focused more on the local law compliance and obtaining certifications. The fund manager updated its ESMS which is now in compliance with the IFC Performance Standards. The fund manager also retains an external E&S consultant and the fund manager is aware and agrees with that the fund will not make investment in unmanageably high E&S risk projects.

S.no	Title	Anticipated Completion Date	Status
1	Nominate officers	01/30/2015	Completed
2	Establish SEMS	01/30/2015	Completed
6	Staff Training	01/30/2015	Completed

Contacts

For Inquiries About the Project, Contact

Erick Lagos
Managing Director
Lafise Investment Management Ltd.
Centro Financiero LAFISE
Km 5 ½ Carretera a Masaya
Managua, Nicaragua
T: (505) 2277-1111
E: mailto:erlagos@lafise.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

Local Access of Project Documentation

N/A

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Private Equity Funds Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer