IDB Invest, a member of the IDB Group, provided a $40 million loan to TIA S.A. (TÍA) with the aim of increasing access to quality food and products in Ecuador and supporting the company's expansion plan, based on the modernization and innovation of its processes and facilities. The operation will also contribute to TIA's sustained growth and job creation nationwide.
The loan will support TÍA's plan so that its customers have better access to basic necessities, with higher quality and more accessible, by opening approximately 100 new stores in the coming years. Many of them will be located in underserved areas, without access to this type of products and where vulnerable or low-income populations live.
The financing has a tenor of 10 years and will allow TÍA to increase purchases from suppliers in its value chain, of which a large group is made up of micro, small and medium-sized enterprises (MSME). A portion of the financing provided may be used as advance payments for long-standing MSME providers and who have been most affected by the consequences of the COVID-19 health emergency.
The project also includes IDB Invest technical advisory aimed at identifying business opportunities that generate shared value in the supply chain, especially related to increasing the number of diverse suppliers, such as women-owned SME, people of African descent, indigenous peoples, and people with disability, as well as sustainable production solutions. In addition, TÍA remains committed to working with the community, promoting entrepreneurship and initiatives that generate social development, and reinforces its infrastructure improvement programs for the protection of the environment.
The deal potentially contributes to three of the United Nations Sustainable Development Goals: Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Responsible Production and Consumption (SDG 12).
This project demonstrates IDB Invest’s support to bolstering the food industry. The COVID-19 crisis has created major challenges in food safety, including maintaining production, proportionate distribution of products and proper treatment in facilities, all with the best safety conditions and quality. Support to this industry, in an agile and fast way, is a priority so that countries can strengthen their response to the pandemic.
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 $12.1 billion in asset management and 333 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 Tiendas Industriales Asociadas (TIA) S.A.
With 60 years of experience, TÍA is an Ecuadorian company providing innovative product offerings and promotions tailored to the average Ecuadorian family. As the retailer with the largest national coverage and more than 8,000 workers and associates; it has 229 stores in 22 of the 24 provinces of the country. TÍA has a loyalty program with more than 3 million cardholders and a radio (radioTIA) as one of its main channels of communication with customers nationwide. Its business model stands out for its modern processes and facilities, the undertaking of social projects, the improvement of infrastructure in the cities where it operates, as well as the innovation and commitment to generate well-being for Ecuadorian families.