• IDB Invest will provide advisory services on circular economy with a gender focus and will also support Adelca in its digital transformation process

IDB Invest will provide a total financing of up to $30 million to Adelca, one of Ecuador's leading steel companies, to support the development of the steel industry in the country, promoting the product diversification and local job creation.

Through IDB Invest’s support, Adelca is expected to increase value-added production and manufacturing of a new line of products. To do this, it will be necessary to import supplies from Brazil and other countries in the region, promoting regional trade exchange.

The financial solution is made up of two lines of credit, the first for up to $15 million and and the second for up to $10 million, which will help to import coils and supplies necessary for its new steel production line. Additionally, IDB Invest will provide a senior loan for up to $5 million to finance digital transformation initiatives to support the company's strategy of becoming a leader in digitalization in this industry.

Additionally, IDB Invest will provide advisory services to increase the volume of scrap collected, as well as to increase the number of small and medium suppliers to the Recyclers Club. The advisory will include a gender focus to intentionally integrating women and other similar groups in the value chain, strengthening the reverse logistics of its circular model.

Likewise, IDB Invest will offer support for Adelca’s digitalization including an evaluation of the digital gap and its installed technological capacity. This approach will integrate multiple disciplines and will culminate with the creation of a tailored digital program to help Adelca succeed in an increasingly digital industrial environment.

IDB Invest has worked with Adelca as a strategic partner since 2015, with the financing of its plant in Milagro, and now seeks to continue strengthening its long-term business relationship with new financial products and advisory services.

The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Responsible Production and Consumption (SDG 12).

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank 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 $16.3 billion in assets under management and over 390 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.

About Adelca

Adelca, the #1 steel company in Ecuador, is the leading company in the recycling, production and marketing of steel products in Ecuador, with more than 60 years of experience and track record. It focuses on meeting the needs of segments such as: construction, metalworking, perimeter security, agriculture and industry; through direct and indirect distribution channels.