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Grupo Monge
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 26968
Central America Region
RegionLatin America and the Caribbean
SectorRetail (Including Supermarkets, Grocery Stores, etc.)
Company nameGMG Holding, SA
Environmental category:B
Date ESRS disclosedMarch 27, 2008
Previous EventsInvested: July 11, 2008
Signed: June 3, 2008
Approved: May 28, 2008
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

Applicable Standards
Key Issues

& Mitigation



Overview of IFC's scope of review
IFC’s review included meetings with:

- the Grupo Monge corporate management team (including CEO, CFO, Human Resources Manager and Director of the Corporate Social Responsibility Program);
- the country-level management teams (General Managers, Human Resources Managers, Operations Managers and, where in place, Coordinators for Occupational Health and Safety) in Costa Rica, El Salvador, Honduras, and Nicaragua, and
- managers and staff of distribution centers and retail outlets.

Site visits to all distribution centers in Costa Rica, El Salvador, Honduras, and Nicaragua were conducted, as well as to selected stores in San José and Alajuela in Costa Rica, San Salvador in El Salvador, San Pedro Sula in Honduras, and Managua in Nicaragua. Documents on human resources management, occupational health and safety policy and procedures, emergency preparedness protocols, training programs and the corporate social responsibility program were reviewed.
Project description
Grupo Monge (or the company) is a leading family-owned, Central American retailer of consumer electronics, household appliances and home furniture. The company has 325 retail stores across five countries, offering products mainly to low and middle-low income consumers, and employing more than 5,500 permanent staff. Grupo Monge has a presence in Costa Rica (since 1969 with 180 stores), Nicaragua (since 2000 with 52 stores), Honduras (since 2004 with 36 stores), Guatemala (since 2006 with 10 stores) and El Salvador (since 2006 with 47 stores). Grupo Monge operates in three lines of business:

- the retail segment, which includes three different formats with separate brands catering to different target clients;
- the wholesale segment in Costa Rica; and
- the consumer finance segment, through which it provides consumer financing for store purchases.

Over the next three to four years, the company plans to:

- expand its retail network in Guatemala, Honduras and El Salvador; and
- refinance a major part of its short- and long-term debt.

The company expects to finance the project with a combination of shareholders’ equity, long-term debt and internal cash generation. Grupo Monge has requested IFC to provide loans of up to $50 million.