GTSF Nestrade

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This proposed investment is under the Global Trade Supplier Finance program (“GTSF” or the “Program”) approved by the IFC Board on September 21, 2010 (Original Project #28723) and an additional increase approved on December 15, 2022. Under GTSF, IFC provides short-term financing to suppliers (“Suppliers”) in emerging markets selling to large companies (“Buyers”) on open account terms. Under this project, IFC will provide financing to emerging markets coffee suppliers of Nestrade S.A., a wholly owned subsidiary of Nestlé S.A. (“the “Company”). The proposed supply chain finance facility (‘the project”) is expected to be US$100 million. IFC would purchase, at a discount, assignment of US$ denominated invoices owed by Nestrade to its coffee suppliers - as and when they elect to sell their receivables - in several emerging markets, such as Brazil, Colombia, Kenya, and Ethiopia via CRX Markets AG (“CRX”), a leading global supply chain finance platform. Suppliers to be supported by this program are only those which comply with Nestle’s “Responsible Sourcing” requirements. . As of 2024, about 95% of coffee sourced by Nestle was tagged as responsibly sourced. At invoice maturity, IFC as the beneficial owner of the invoice when IFC has successfully purchased notes backed by suppliers’ invoices would receive repayment of the full invoice value from Nestrade. In this mechanism, IFC would fund a component of Nestrade’s broader supply chain finance (SCF) program on CRX that utilizes sustainability linked pricing whereby IFC would provide a lower discount rate to coffee suppliers complying with Nestlé’s “Responsible Sourcing” requirements.