MLR Forestal de Nicaragua S.A.
Region and country of operations: Nicaragua, Siuna and Bonanza
Jurisdiction of registration: Nicaragua
Business sector: Forestry and agriculture
Date of agreement (month/year): 12/2019
Finnfund’s financing: USD 10,000,000
Share of Finnfund’s financing: 39%
Size of project/financing: USD 25,500,000
Environmental and social category: A
Finnfund is providing a USD 10 million loan to finance the expansion project of MLR Forestal de Nicaragua, a forestry company operating teak and cocoa plantations. The company will sell most of its certified teak through international traders to Indian and other Asian markets. The fine cocoa produced is currently sold in the local Nicaraguan market but as production continues to increase, international markets will be sourced. MLR plans to expand its planted area by another 1,900 hectares to reach a total area of approximately 4,500 hectares.
Main development impact
- Carbon capture
- Promotion of fauna through established corridors
- Promotion of formal employment opportunities
- Equal opportunities to women
- Contribution to the fight against deforestation and forest degradation.