• The issuance will help the pharmaceutical company promote its sustainability strategy and reduce its CO2 emissions.

   

IDB Invest and Proparco supported pharmaceutical distributor DIFARE in the issuance of Ecuador's first sustainability-linked bond and the first in the pharmaceutical sector in the country. The $50 million issuance with a five-year tenor will be used primarily to finance capital and renewable energy investments. IDB Invest, as anchor investor, will subscribe $28.5 million of the bond, and Proparco $21.5 million.

The sustainable financial instrument will allow DIFARE to reduce its carbon footprint by at least 50% and decrease greenhouse gas emissions related to the transportation of goods by at least 20%. In addition, the issuance seeks to increase the availability of medicines through greater coverage of the pharmacy network nationwide, which will boost employment and create new job opportunities.

“This issuance not only represents a milestone for Ecuador, but also an opportunity for the pharmaceutical sector to move towards more sustainable models. At IDB Invest, we continue to support our clients in implementing innovative financial solutions to mitigate climate change and reduce their carbon footprint,” said James P. Scriven, CEO of IDB Invest. 

“For DIFARE, being the first to issue the sustainability-linked bond in Ecuador reflects our commitment to integrating good practices throughout our processes and operations. This step towards a more sustainable future reinforces our purpose of offering healthcare within everyone’s reach while actively working to generate a positive impact on society and the environment,” said Carlos Cueva Mejía, CEO of Grupo DIFARE. 

Additionally, to strengthen DIFARE's commitment to good corporate governance practices, IDB Invest will provide advisory services to improve the governance structure according to the best international standards. Specialized support will also be offered to increase gender opportunities in its logistics operations, including training programs, internships, and gender and diversity training.

IDB Invest led the design, conceptualization and identification of the key performance indicators (KPIs), the Sustainability Performance Targets (SPTs), and supported the development of the Reference Framework for the issuance. The second-party opinion was prepared by Moody’s Ratings, confirming the alignment of the framework with the Principles of the International Capital Market Association (ICMA).

The deal with DIFARE is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).

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 Distribuidora Farmacéutica del Ecuador S.A. (DIFARE)

With 40 years of experience, Difare S.A. leads the business group and has three pharmacy chains under the brands: Pharmacy's, Cruz Azul and Farmacias Comunitarias. Promoting innovative solutions, it founded Vita Sanus, the first Medicine Bank in the country, and reaffirms its commitment to its clear and renewed purpose: Health Within Reach of All. More information at: grupodifare.com | Social networks: GrupoDIFARE.

About Proparco

Proparco, a subsidiary of the Agence Française de Développement Group, has been working with the private sector for more than 45 years for a fairer and more sustainable world. With an international network of 25 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from its expertise in the sector, as well as from a wide range of financial solutions adapted to the different stages of business development, thanks to its subsidiary Digital Africa, and its Propulse technical assistance offer designed to amplify the impacts and performance of its partners. For more information, please visit: proparco.fr/en and @Proparco on LinkedIn.