IDB Invest, a member of the Inter-American Development Bank (IDB) Group, led a financing of $235.5 million to the Ecuadorian company Corporación Favorita C.A., the largest self-service chain in Ecuador and one of the largest companies in the country. The funds will be used to increase local access to quality products both in Ecuador and Panama, where the company will consolidate its expansion.
The financing will be used to support Corporación Favorita in its growth plans to implement new technologies and innovations, optimize production processes, open new locations, generate clean and renewable electricity, and ensure proper management of natural resources and waste. The improvement of these services will have a positive impact on Corporación Favorita’s the entire value chain, spread throughout urban and rural areas of Ecuador.
The deal seeks to increase employment in the two countries that will receive the funds, especially in Ecuador where Corporación Favorita is one of the main employers. Also will promote the growth of exports of products of small and medium Ecuadorian companies to Panama, and a greater access to food and quality products in underserved areas, thanks to the greater number of points of sale.
The financial package led by IDB Invest includes $230 million fro, its own resources, and $5.5 million uncommitted mixed financing from the Canadian Climate Fund for the Private Sector of the Americas (C2F). The participation of C2F will contribute toward installing self-consumption photovoltaic solar roofs.
The deal potentially contributes to three of the United Nations Sustainable Development Goals: Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12) and Partnerships for the Goals (SDG 17).
As a result of its partnership with IDB Invest, Corporación Favorita is committed to improving its corporate governance, and its environmental and social risk management system. In addition, IDB Invest’s advisory services will support Corporación Favorita in the implementation of actions aimed at increasing gender equality, diversity and inclusion in the company.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group (IDB), 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 $12.4 billion in asset management and 342 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Corporación Favorita
Corporación Favorita, an Ecuadorian company, was founded in 1952 as a small business selling household goods, in downtown Quito; In 1957 it was the first self-service company in the country. It currently develops its activities with subsidiaries in the commercial, industrial and real estate sectors. Corporación Favorita is one of the largest employment generators in the country and was one of the first national firms to open its capital to the public in 1976. The company’s value chain and its subsidiaries is made up of more than 15,300 direct employees in Ecuador and 5,500 In Panama; a network of 11,700 small, medium and large suppliers in Ecuador and 800 in Panama; and, more than 15,000 shareholders, of which around 30 percent are collaborators and former collaborators of the company. It is estimated that the activities of the company and its subsidiaries also generate about 260,000 indirect jobs.