Company name
Confecciones Leonisa S.A.
Project number
CO1057B-01
N/A
E&S category
N/A
Country
Colombia
Sector
Manufacturing
Status
Completed
Disclosed date
09/20/2006
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
10/31/2006
Approval date
11/28/2006
Signed date
N/A
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 5,000,000
Currency
USD
Project scope and objective
With the IIC loan, Leonisa will improve its financial profile with medium-term financing, making the company less vulnerable to changes in the financial market and in terms for accessing financing. The loan will also provide greater stability for Leonisa’s manufacturing and marketing activities. The company depends on a supply chain comprising twelve work cooperatives and over fifty small garment manufacturers, largely male and female microentrepreneurs, and accounting for approximately 2,500 direct and indirect jobs. Leonisa outsources a significant portion of its garment manufacturing.
Three of the work cooperatives (Ecoelsa, Incomar, and Coopimar) were founded thanks to the Sponsors’ initiative and with Leonisa’s support. They are located near the city of Medellín in the towns of El Santuario and Marinilla. These towns, each with a population of approximately 25,000, have gone through periods of violence that generated insecurity and a lack of opportunities for young people, causing them to migrate to Medellín in poor living conditions. In spite of the insecurity in the region, these work cooperatives generated over 1,000 jobs, principally for women, who in many cases are heads of household or mothers. Also, women occupy all of the managerial positions in the cooperatives.
The majority of the cooperatives’ workers are also members through an affiliation agreement; in turn, the cooperatives are responsible for fulfilling all labor requirements. Members receive benefits beyond those required by law: production incentives, bonuses, training, educational assistance, housing loans, and emergency assistance, among other benefits. The cooperatives have obtained ISO 9001:2000 certification and have the highest production standards of all of Leonisa’s garment manufacturers. In addition to being the main source of employment in their locations, the cooperatives offer the community important social services through artistic, cultural, sports, and recreational activities that take place on their premises. Facility maintenance, the quality and efficiency of the work carried out there, the care for the environment, and the respect for the social milieu all reflect the strong sense of ownership that the members have developed.
The other garment manufacturers also comply with Leonisa’s requirements regarding environmental issues, safety, health, job security, and quality. In addition, Leonisa offers them training.
With the experience gained through this operation, in the future the Corporation would be able to consider providing financing to this supply chain.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesFor inquiries, comments and information requests about the project
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Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW
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