IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, provided a secured loan of $20 million to Maquinarias y Vehículos S.A. (Mavesa) to support its truck and bus credit sales plan. Mavesa facilitates access to vehicles for independent carriers and micro, small and medium enterprises (MSME) in Ecuador offering repayment terms up to five years.
The operation will contribute to the renovation of the Ecuadorian automobile fleet, in which the average age of the vehicles is 16.2 years and only 4 percent are less than one year. Most are older vehicles with outdated technology, which limits productivity and efficiency and negatively impacts the environment. The financing will help solve this problem, improving Mavesa's capacity to reduce the financing gap for commercial and productive vehicles.
This project also supports the Renova 2.0 Plan of the Government of Ecuador, which aims to boost the purchase of new vehicles, which in turn emit less carbon dioxide and are more efficient, and through greater access to financing. In this way, self-employed enterprises and companies can access new vehicles for to generate more income.
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 $11.6 billion under management and 330 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
Founded in 1936 and after 86 years in business, Maquinarias y Vehículos S.A. (Mavesa) has become the leader of the Ecuadorian automotive market. Positioned in 12 cities across the country and in more than 27 branches, it offers a wide range of products from its Hino, Citroën, John Deere, Bomag, Hitachi and Marangoni distribution lines, all complemented by after-sales services aimed at heavy and light transport segments, and working with: Hino and Citroën Specialized Workshops, Genuine Parts, Service Centers for multi-brand vehicles, light and heavy with Straightening and Painting workshops, as well as a modern Reencauche Plant.