Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Industria Cerámica Centroamericana S.A.
- Project ID
- Fiscal year
- Guarantee holder
OC International Holdings Inc.
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- July 10, 2014
- Project Board date
- September 25, 2014
- Gross exposure
- $11.0 million
- Project type
- Original version in pdf, disclosed on July 10 2014
This summary covers an investment by OC International Holdings Inc. of Barbados in Industria Cerámica Centroamericana S.A. in Nicaragua. The investor has applied for a MIGA guarantee of $11.0 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the acquisition of a majority share of Industria Cerámica Centroamericana S.A. by OC International Holdings of Barbados, a majority owned subsidiary of Organización Corona S.A., a large ceramics manufacturer incorporated in Colombia. The investor plans to modernize and expand the facilities following the acquisition.
The project will help meet the growing demand for sanitary ware products (e.g., toilets, sinks) in Nicaragua. It is also expected to improve sanitation conditions in rural areas by providing innovative, affordable sanitary units.
The project will involve the transfer of a set of technologies that will improve production processes, increase the plant’s competitiveness, and introduce product innovations in the market. It will benefit from continuous managerial, technical, logistical, and marketing support from the Corona Group, an important sanitary ware manufacturer in the Americas. The project is expected to employ more than 200 local staff.
The proposed project is aligned with the World Bank Group’s Country Partnership Strategy for Nicaragua, which aims to raise incomes by increasing productivity – including the expansion of domestic markets.
MIGA’s proposed participation in the project is also aligned with the Agency’s commitment to supporting investments into countries eligible for concessional lending from the International Development Association.