IDB Invest boosts food security in Central America together with CMI Alimentos

IDB Invest, a member of the IDB Group, provided a $75 million loan to Corporación Multi Inversiones (CMI Alimentos) with the objective of ensuring its liquidity in the medium term and supporting the continuity and reactivation of its operations. The deal reinforces food security and income generation in Guatemala, El Salvador and Honduras.

The financing contributes to the company's fixed investment maintenance plan, the maintenance of its jobs and its links with the local and regional markets. CMI Alimentos is one of the largest employers in Central America and the Dominican Republic, with around 30,000 employees. The funds will make it possible to strengthen the value chain in two ways: increasing purchases from the company's more than 8,000 suppliers and benefiting the microentrepreneurs who make up its main direct sales channel, the majority of whom are women entrepreneurs.

Through this project, IDB Invest plays a countercyclical role, providing long-term financing that alleviates food security challenges, a key aspect in the fight against COVID-19. CMI Alimentos will support the supply of food in local markets, for example, animal protein, flour and derived products, in the context of operational, logistical and labor restrictions.

In addition, the deal will help reactivate the generation of income, through direct and indirect jobs, in rural areas of Central America, where vulnerable populations live strongly affected by the health emergency and hurricanes.

The financing consists of a $50 million loan from IDB Invest's own funds and the mobilization of $25 million from the Chinese Co-financing Fund for Latin America.

IDB Invest's operation includes the implementation of best environmental and social practices in the company's operations, aligned with international standards. A support plan with a gender angle will also be launched, aimed at CMI Alimentos' micro distribution chain in Guatemala. The training will cover topics such as financial education, business management, women's empowerment, and digitization. Subsequently, an impact evaluation of the strategy will be carried out to assess its expansion to supplier microentrepreneurs in other countries.

The operation potentially contributes to three of the United Nations Sustainable Development Goals: 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.

About Corporación Multi Inversiones (CMI Alimentos)
CMI Alimentos is a multilatina family corporation with more than 90 years of history, more than 40,000 employees and a presence in more than 15 countries on three continents. Its businesses are organized into two large groups: Food and Capital. Through CMI Alimentos, it develops products focused on food and nutrition for Latin American families. Today it is one of the largest and most important food groups in the region in businesses of wheat and corn flour mills, pasta and biscuit production; poultry, pork, processed and sausage industry; balanced food for animals and pets; restaurant industry with its brands Pollo Campero and Pollo Granjero, among others.