IDB Invest Supports Ecuador’s Vicunha SA with Loan of Up to $10 Million
IDB Invest, a member of the Inter-American Development Bank Group, has granted a loan worth up to $10 million to Vicunha Ecuador S.A., the largest textile exporter and the only producer of denim fabric in the country. The financing will support the recovery of Vicunha’s operations hit by the pandemic.
The deal, maturing in up to 5 years, will help increase textile production, recover the level of employment, contribute to the strengthening of the textile value chain and increase exports. Specifically, the funds will be used for working capital, capital expenditures (Capex) and the refinancing of a current loan with the IDB.
This is the third transaction that the IDB Group has granted to Vicunha. The previous two were a $3 million loan in 2011, mainly to install a turbine in its hydroelectric plant, and an A/B $20 million loan in 2015 for the expansion of its manufacturing capacity.
As part of IDB Invest's advisory services in the project, Vicunha will implement improvements in environmental and social issues, and will train Micro, Small and Medium Enterprises (MIPYME) clothing manufacturers, mostly led by women.
The textile industry is one of the main economic activities of the manufacturing sector in Ecuador, and it is the second largest employment driver in the country.
This operation potentially contributes to five United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12) and Partnerships to Achieve Goals (SDG 17).
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.
About Vicunha Ecuador
Vicunha Ecuador is a denim-jeans textile manufacturer, with Brazilian capital and a presence in several countries in the region, committed to the environment and the community, that provides programs and projects of social responsibility for the benefit of the natural environment and promotes opportunities of employment and human development. Ethics, pride in its products and compliance with the law are fundamental pillars of its processes and activities.