Company name
Corporación Favorita, C.A.
Project number
12511-01
Category B projects have potential environmental and/or social impacts and risks that are less adverse than those of a Category A and which are generally limited to the project site, largely reversible and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.
E&S category
B
Country
Ecuador
Sector
Manufacturing
Status
In implementation
Disclosed date
12/11/2019
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
01/21/2020
Approval date
01/21/2020
Signed date
01/22/2020
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
USD $ 300,500,000
Financing amount
USD $ 230,000,000
Currency
USD
Project scope and objective
The transaction consists of guaranteed, long-term core financing for Corporación Favorita, C.A. (“CF”, “the Company” or “the Client”). To date, CF is the largest self-services chain in Ecuador, the largest private company in terms of income, and the second largest employer in the country.[1] This Company is also in the process of becoming a MultiLatina, as it has invested in businesses in Chile, Colombia, Paraguay, Peru, and Costa Rica and holds a controlling interest in Panama’s Supermercados Rey since early 2019.
IDB Invest's resources will allow the Company to execute its Capex 2018-2022 plan, allowing it to use its own resources to strengthen its business in Panama and continue its international expansion.
Addendum: On may 27, 2022 this publication is reviewed to include an additional tranche to be mobilized with international banks to partially finance the expansion of CF's operations in Panama.
[1] Source: Vistazo Magazine No. 1250 September 2019, “500 Mayores Empresas del Ecuador” Special.
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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 OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
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 ACTION PLAN - FAVORITA.PDF
143.8 Kb
CORPORACION FAVORITA - ADENDUM ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
399.4 Kb
COPORACION FAVORITA-ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
385.6 Kb