Mercapital de Nicaragua S.A.

Who is our client

Mercapital de Nicaragua S.A. (Mercapital) is the financial arm of Mercon Coffee Group (MCG) in Nicaragua. MCG is one of the world’s leading coffee merchants. It has sourcing operations in Central America, Brazil and Vietnam and a significant share in sustainable, certified and/or quality coffees. Mercon is involved in all aspects of the coffee supply chain from primary production, production and distribution of seedlings, sourcing and processing of coffee from third parties to the delivery and export of green coffee.

Funding objective

FMO will provide a subordinated debt facility up to USD 5 million. The funds will be utilized to build a portfolio with long- and short-term loans to Arabica and Robusta coffee farmers for purposes such as farm renovation & new plantings, to cover labour costs and farm inputs and will strengthen the capital position of Mercapital.

Why we fund this project

Mercapital supports MCG’s coffee operations in Nicaragua hand by hand with Comercial Internacional Exportadora S.A. (CISA), the group’s main operating company in the country. Mercapital provides long and short-term financing to over 3,000 coffee producers. Support from CISA and Mercapital enables producers to achieve their long-term farm objectives of increased production & yields, improved climate resilience and stabilized earnings from the farms in impoverished regions of Nicaragua. The environmental and social rationale will focus on the implementation of the Client Protection Principles.