IDB Invest Supports Manufacturing Sector in Belize with Recinos
IDB Invest has provided a $1 million loan to Recinos, a large distributor of select and international brands of imported goods in Belize, to expand its operations in the manufacturing sector and support supply chain resiliency.
The loan will support Recinos´ expansion program increasing its storage capacity including additional storage for its ice cream business segment, as well as related working capital needs. Having access to long-term funding to support the investments needed to maintain competitiveness is key for this type of companies.
This deal will allow for continued supply of goods from Recinos' suppliers, most of them being small and medium enterprises (SMEs) at cost effective pricing. This is essential to support economic recovery and reduce the strain on consumers.
This investment will support SMEs in Belize, as well as the neighboring countries of Guatemala and El Salvador, where key suppliers are located. The proximity of Recinos´ supply chain will improve supply chain resilience in the region while generating employment opportunities and contributing to export-led growth to the economic recovery of these countries.
The proposed financing will have up to 10-year tenor including 12-month grace period and could be increased up to $5 million.
IDB Invest will provide advisory services to help assess the efficiency of Recinos' operations including their energy consumption. The client will also benefit from a Corporate Governance Action Plan and from a consultancy to develop the environmental and social policies and procedures.
This project is IDB Invest’s first involvement in the manufacturing sector in Belize, supporting the objective of developing business in the country. The retail sector has experienced robust growth and remained resilient during the COVID-19 pandemic. This project will contribute to the continued expansion of the sector and its diversification to meet the increasing needs and demands of the population of the country.
This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Responsible Consumption and Production (SDG 12).
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.
Recinos Imports Limited is a large distributor of select and international brands of imported goods. Established in 1995 in San Ignacio, Belize, the Company focuses on high quality products in grocery, personal and COVID-19 safety use, home use, animal care, hardware and wines and spirits. The Company has also diversified into services and has established three retail ice cream outlets across the country.