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IDB Invest and IFC jointly finance approximately $100 million to Genomma Lab Internacional in Mexico

IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, and the International Finance Corporation (IFC), are financing an approximately $100 million loan to support expansion plans of Genomma Labs, a leading regional pharmaceutical company in Mexico City.

The financing will go toward the construction and operation of Genomma’s first manufacturing plant in the country producing pharmaceutical and personal care products. The plant will produce generic medicine products, reducing the cost of healthcare especially for low socioeconomic populations. The project will allow the company to reduce production costs and offer more affordable products throughout the region.

The new plant will have state-of-the-art technology, and will generate around 350 direct jobs, of which a part of them will come from the towns near the plant. In addition, it is expected that by 2020 there will be a significant number of women and a significant number of indirect jobs will have been generated throughout the supply chain.

The financial package consists of an IDB Invest local currency loan of MXN 900 million and an IFC loan equivalent in local currency to $50 million. In addition, IDB Invest expects to sign a reverse factoring facility of up to MXN 300 million to provide financing to Genomma Lab's suppliers, most of which are small and medium-sized enterprises (SME).

IDB Invest's reverse factoring revolving line will strengthen the Genomma supply chain. With this service, SME are empowered, allowing them access to financing. In this way, they do not incur debt, they obtain immediate liquidity, they do not have to present a guarantee and the conditions are more favorable.

About IDB Invest

IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.

About Genomma Lab Internacional

Genomma Lab Internacional, S.A.B. of C.V. is one of the fastest growing companies in the pharmaceutical and personal care industry in Latin America. Genomma Lab is dedicated to the development, sale and promotion of a wide variety of premium brand products, many of which are leaders in the categories where they compete in terms of sales and market share. The company has a strong business model through a unique combination of new product development, consumer-oriented advertising, a broad distribution network and a highly flexible, low-cost supply chain operating model. Genomma Lab is listed on the Mexican Stock Exchange under the "LABB" quote symbol (Bloomberg: LABB.MM)

About IFC

IFC, a sister organization of the World Bank and a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 companies around the world, using our capital, experience and influence to create markets and opportunities in the most difficult areas of the world. In fiscal year 2017, we delivered a record $19.3 billion in long-term financing for developing countries, harnessing the power of the private sector to help end poverty and boost shared prosperity.