EMP Latin America (EMPLA) today announced a US$17 million financing for Promoción e Industrialización de Palma (PIP) and its subsidiary Propalma, the largest vertically-integrated palm oil producer in Mexico. The financing, structured as a long-term mezzanine loan, was made through the Central American Mezzanine Infrastructure Fund (CAMIF). The investment financed PIP's consolidation of its ownership of Propalma and other operating companies and also provided resources for the expansion of operations. PIP is now the sole owner of an integrated business consisting of plantations, crushing facilities and a vegetable oil refinery under construction.

"We are pleased to have CAMIF as our long-term financial investor in this venture", said Jorge Terrones Lopez, General Manager of Propalma. "While the business is solidly established in Chiapas and has been up and running for years, the palm oil sector in Mexico is definitely taking off and we are seeing significant growth opportunities, particularly mid and up-stream", added Mr. Terrones Lopez. "With these additional financial resources, the company is uniquely well-positioned to take the business to the next level". 

"The fundamentals of the global palm oil industry are solid and some parts of Mexico possess the unique natural conditions required for palm cultivation. The country still depends on foreign sources to satisfy its increasing domestic demand for the product and there is clearly a long-term opportunity to tap an underdeveloped and underserved market" said Marcos Rampoldi, EMPLA's officer in charge of the investment. "In addition, Propalma is committed to prioritizing social and environmental responsibility as part of its sustainable business plan, which was critical to our decision-making process". 

James Martin, Managing Partner of EMPLA, said "Our investment in PIP is an example of how CAMIF can structure its mezzanine investments according to the specific needs of the company and its sponsors, with a high degree of flexibility that allows companies to take advantage of opportunities where traditional financing and capital are scarce. We are partnering with a visionary sponsor in a long-term relationship that will certainly require mobilization of additional capital down the road as Propalma consolidates its leadership position." 

Creel García-Cuéllar Aiza y Enriquez, S.C. acted as counsel to CAMIF, with Covington & Burling LLP acting as special US counsel. Olea Abogados, S.C. was counsel to PIP.  

About EMPLA and CAMIF

EMPLA is a private investment fund manager dedicated exclusively to Latin America. It was formed as a joint venture between EMP Global LLC, a leading private equity fund manager focused on emerging markets, and senior members of its Latin American team. CAMIF, a US$150 million investment fund, offers long-term mezzanine financing to private infrastructure companies in Central America, Mexico, Colombia, and the Dominican Republic. The Fund focuses on traditional infrastructure projects, such as transportation, energy and telecommunications. In addition, CAMIF is able to invest in related sectors, such as natural resources, tourism, agribusiness, alternative fuels, health & education, and water & sanitation. Fund participants include the Inter-American Development Bank (IDB), IFC, a member of the World Bank Group, Netherlands Development Finance Company (FMO), Central American Bank for Economic Integration (CABEI), Mexican Fondo de Fondos (CMIC), and Finnish Fund for Industrial Cooperation (Finnfund).