IDB Invest strengthens food production in Ecuador and Panama
IDB Invest, a member of the IDB Group, provided a $45 million loan to the company Procesadora Nacional de Alimentos (Pronaca) and La Estancia Investment Holding (La Estancia). The deal will help the companies to finance capital investments in Ecuador and their internationalization through the acquisition of Productos Toledano S.A. in Panama.
The financing will help expand the production of animal protein and balanced feed in Ecuador and Panama, increasing productivity in food production. In addition, the financing will contribute to strengthening Pronaca's supply chain, since with the boost in production it is expected that purchases will increase, benefiting in particular the 36 percent of small and medium-sized companies that are part of its network of suppliers.
The internationalization of La Estancia supported by this financing contributes to the transfer of knowledge, best practices and excellence in the management of the animal protein industry in Panama. La Estancia is a consortium, formed by the founding shareholders of Pronaca and the owners of the Central American multilatina Corporación Multi Inversiones, created to expand the geographic presence of these two companies in Latin America.
Minimizing the impact on food security, reducing possible interruptions in the supply of food and keeping the industry’s workforce stable constitutes a central pillar of IDB Invest's strategy to support the region’s economic recovery from COVID-19.
The project also incorporates environmental and social improvements for the identification and management of the group's risks, as well as improvements in its corporate governance that contribute to reinforcing the sustainability of the company.
The deal potentially contributes to one of the United Nations Sustainable Development Goals: Decent Work and Economic Growth (SDG 8).
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 $13.1 billion in asset management and 385 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.
PRONACA is an Ecuadorian company with more than 60 years in the market, long-term vision, faith in its people and in its country. Pronaca honors the family values that has characterized it since its foundation: Solidarity, Responsibility and Integrity. With this, PRONACA continues to face challenges, which allows us to deepen the culture and proudly declare it in this way: We are a family that exists to feed well, we work efficiently, humanely and sustainably.
About La Estancia
La Estancia is an investment platform, formed by the union of two Latin American family groups that generates value through the acquisition and transformation of leading companies in animal protein in the Andean region and Panama.