IDB Invest has signed a financing agreement for up to $15 million with Banco de Machala S.A. to boost food security in Ecuador. The financing includes a parallel loan of up to $15 million. 

The project will help increase access to credit for companies engaged in food production in Ecuador and expand financing for green projects, including blue economy projects. This financing will support strengthening food security in Ecuador and promoting climate change mitigation and adaptation.

Strong, sustainable and inclusive food systems are essential to achieving global development goals. Agricultural development is one of the most important means to end extreme poverty and boost shared prosperity. Financing with a sustainable approach promotes long-term growth and sustainability of the productive sector. In addition, it enhances new market opportunities and attracts investors looking for projects with a positive impact.

The financing also includes the signing of a technical advisory services contract through IDB Invest. It will support Banco de Machala to strengthen its sustainability strategy by developing a decarbonization plan aligned with the Net Zero Banking Alliance strategy. The contract will also support the development of a strategy to promote sustainable and equitable food systems through adapted financial instruments and indicators aligned with best practices.

“IDB Invest’s participation in financing the food production portfolio and the green portfolio of Banco de Machala confirms our commitment to food security and the promotion of sustainable production practices in the country. This type of financing not only stimulates innovation and efficiency in companies, but also encourages responsible practices that benefit the environment and society,” said Diego Flaiban, Chief Director of the Financial Sector Division (a.i.) of IDB Invest. 

"We are very excited about this new financing granted by IDB Invest, whose funds will allow us to expand our credit portfolio in the productive sector, thus promoting the sustainable development of Ecuador. This agreement not only provides us with the necessary resources to grow, but will also allow us to strengthen our sustainability strategy and align our operations with the United Nations sustainable development goals. We thank IDB Invest for its trust and support in this important project," said María Eugenia Navarrete, executive president of Banco de Machala.

This deal is expected to contribute to five Sustainable Development Goals (SDGs) of the United Nations: zero hunger (SDG 2), decent work and economic growth (SDG 8), industry, innovation and infrastructure (SDG 9), responsible production and consumption (SDG 12), and life below water (SDG 14).

About IDB Invest 

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website idbinvest.org.

About Banco de Machala

Banco de Machala is a leading financial institution in Ecuador with more than 62 years of solid experience, committed to the sustainable and economic development of the country, offering inclusive financial products and services that support equality and equity. It prioritizes innovation and social responsibility in high-value interest groups, focusing on the Productive and Consumption segments, efficiently channeling resources towards those sectors that demand financing for profitable projects that boost the economy and ensure the well-being of all.