The project sponsor is Mr. Miguel Facusse Barjum, a Honduran national.

The project cost is estimated at $75 million. The proposed IFC investment is a $30 million loan facility for IFC’s own account.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

The company is headquartered in Tegucigalpa, Honduras. It owns palm oil plantations across the Aguan and Lean Valleys, and operates two palm oil mills and an edible oil refinery near the cities of Tocoa and La Ceiba. The company also operates a port storage facility at Puerto Castilla; owns vegetable greenhouses and a food processing plant in the Comayagua Valley; and has a snacks plant in San Pedro Sula.

Honduras seeks to expand economic opportunities for the poor, particularly in rural areas. The agriculture sector is one of the main sources of employment in these areas. The palm oil industry in Honduras directly and indirectly benefits almost 5,000 families along the country’s Atlantic coast. Dinant employs approximately 4,500 permanent and 2,500 temporary workers, 30% of which are women.

Local palm oil companies like Dinant have helped develop infrastructure in remote rural regions and have provided an outlet to industrialize smallholders’ palm fruit. In all, there are about 2,300 small palm fruit producers supplying the local palm oil milling industry, 1,000 of which supply the company.

IFC uniquely contributes extensive regional and sector experience, environmental, health and safety best practices, and contributes financing that matches the Company’s need for long tenor and risk appetite.

This is a Category B project under IFC’s Policy on Social and Environmental Sustainability because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, design criteria, local regulations and industry certification schemes.  Oil palm plantation development is occurring on existing, cleared agricultural land, and there is no destruction of or impact on critical habitat involved.  Land acquisition is on a willing buyer-willing seller basis, and there is no involuntary displacement of any people.  There are no indigenous peoples’ ancestral lands in the area and the Pech community near the Company’s Aguan operations is not expected to be adversely affected by the project.  The company is working to actively upgrade its environmental protection capabilities, and will ensure that its operations meet international standards for the sector.  As a result, the Category B designation is appropriate.