The transaction consists of a loan for up to US$50 million, with a term of up to 8 years with 2 years’ grace period, to Procesadora Nacional de Alimentos, C.A. (“Pronaca” or the “Company”) and to La Estancia Investment Holding, S.L. (“La Estancia”) in order to partially finance: (i) the 2019-2020 investment plan for organic growth in Ecuador; (ii) refinance the existing IDB Invest loan; and (iii) La Estancia’s inorganic growth in the region through the acquisition of a shareholder stake in Panavícola I, S.A. (“Toledano”) in Panama (the “Project”).
Pronaca’s investments in Ecuador will allow it to (i) increase chicken and swine production, given its increased installed capacity; (ii) increase productivity; (iii) retrofit its productive facilities via maintenance investments; and (iv) improve its internal policies and corporate efficiency. Pronaca’s internationalization efforts include inorganic growth aimed at increasing its presence in the region, diversifying the risk of business concentration in Ecuador, and transferring knowledge and best practices to other companies in the region.