IDB Invest, a member of the IDB Group, finances the first regional supplier financing program for SIGMA Alimentos S.A. (SIGMA) with a credit line of up to $50 million to help optimize its supply chain and offer financing for working capital at competitive prices for its suppliers, including small and medium-sized enterprises (SME). The program will be available in eight countries in Latin America and the Caribbean.
The deal consists of a reverse factoring line that aims to extend financing to more than 140 SIGMA supply chain providers in Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Peru and the Dominican Republic.
Through this facility, both SIGMA and its suppliers will optimize their working capital. For suppliers, especially SME, it will facilitate access to financing at lower discount rates by monetizing their accounts receivable, shortening their cash conversion cycle.
The implementation will be done through the online platform eFactor Network, which helps to reduce costs and transaction times as all operations are carried out electronically.
Access to financing for the productive sector in the region is a determining factor for economic growth and increased productivity, especially in the context of the COVID-19 crisis. IDB Invest is committed to strengthening value chains and SME with this deal, which is the first regional reverse factoring program.
The operation potentially contributes to the United Nations Sustainable Development Goal of 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 $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 SIGMA Alimentos S.A.
SIGMA is a leading multinational company in the food industry. It produces, markets, and distributes quality, brand-name foods, including deli, cheese, yogurt, and other chilled and frozen foods. SIGMA has a diversified portfolio of leading brands and operates 70 plants and 210 distribution centers in 18 countries in four key regions: Mexico, Europe, USA. and Latin America, representing 42%, 35%, 16% and 8% in sales, respectively. SIGMA, which started operations in 1980, has grown both organically through investments and creation of new brands, and inorganically through acquisitions and the creation of strategic alliances.