WASHINGTON — IDB Invest approved a financing package of up to $58 million for Corporación Favorita C.A. to strengthen the supply chains of its operations in Panama.
The project will finance the expansion of the distribution center of Rey Holding Corp. This investment will benefit the retail sector, generate quality jobs, and increase purchases from local suppliers. The operation also includes a pilot battery energy storage system (BESS) in supermarkets across the country.
The financial package has three components:
First, it includes a committed secured senior loan of up to $15 million and an uncommitted secured senior loan of up to $25 million provided by IDB Invest.
Second, it includes up to $15 million mobilized from the Trust Fund for the Development of Latin America and the Caribbean (TADAC) through the Japan International Cooperation Agency (JICA).
Third, it includes up to $3 million in concessional financing from the United Kingdom Sustainable Infrastructure Program (UK SIP) to support the battery energy storage pilot in supermarkets in Panama.
This combination makes it possible to cover the project’s financing needs, diversify funding sources, and enable innovative investments, and represents another demonstration of the success of “Originate to Share,” IDB Invest’s business model.
IDB Invest will also provide technical assistance to Corporación Favorita to design an Environmental and Social Action Plan aimed at strengthening emergency preparedness and identifying operational risks. The assistance will also include specialized support to optimize refrigerant management, accompany the battery storage pilot, and develop initiatives that promote access to opportunities and women’s safety within Rey Holding’s workforce in Panama.
About IDB Invest
IDB Invest, a member of the IDB Group, 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 $22 billion in assets under management and more than 440 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: www.idbinvest.org/en.
About Corporación Favorita
Corporación Favorita, Ecuador’s largest company, was founded in 1952 and has since been a key player in the country’s economic and social development. With operations in the commercial, industrial, and real estate sectors, the company’s value chain integrates more than 15,000 direct employees in Ecuador, thousands of suppliers, and more than 20,000 shareholders, and generates close to 335,000 indirect jobs. In line with its commitment to sustainable development, Corporación Favorita will invest more than $60 million over the next three years in solar energy projects, implemented in partnership with local electricity companies. These investments aim to diversify the country’s energy matrix, reduce dependence on hydropower, and help address energy deficits in several regions of Ecuador, with a long-term and socially focused vision.
About Grupo Rey
Grupo Rey is a retail company with more than 65 years in the Panamanian market and has become one of the country’s largest mass-consumption platforms. It is currently part of Corporación Favorita and operates more than 175 outlets nationwide across supermarkets, pharmacies, convenience stores, and discount formats. The group brings together the Rey, Hiper Rey, Romero, Mr. Precio, Super Mr. Precio, ZAZ, Metro Plus, and Farma Ahorro brands, and operates a distribution center of more than 67,000 square meters. Grupo Rey currently employs around 6,000 people directly and works with a network of more than 800 suppliers, serving more than one million customers.
About TADAC
The Trust Fund for the Development of Latin America and the Caribbean (TADAC) is a fund administered by the IDB Group and established in collaboration with the Japan International Cooperation Agency (JICA) to promote sustainable development in Latin America and the Caribbean. Through an initial contribution of $1 billion, the fund seeks to catalyze private investment through the co-financing of strategic projects. TADAC represents JICA’s first fund with the IDB Group dedicated to the private sector and the largest of its kind in the region, strengthening IDB Invest’s “Originate to Share” business model.
About UK SIP
The United Kingdom Sustainable Infrastructure Program (UK SIP) is funded through the United Kingdom’s International Climate Finance commitments to accelerate and enable sustainable development in Latin America and the Caribbean. The program supports and catalyzes strategic private sector investments in low-carbon sustainable infrastructure, adaptation and resilience-focused activities, and nature-positive initiatives, while also contributing to equality and social inclusion outcomes.