IDB Invest, Demerara Distillers Limited Partner to Promote Food Security and Climate Action in Guyana
IDB Invest has signed a US$22 million loan with Guyanese firm Demerara Distillers Limited (DDL), one of the main economic groups in Guyana. The financing package includes a US$20 million loan of IDB Invest’s own resources and a US$2 million loan of blended finance resources from the Clean Technology Fund (CTF), managed by IDB Invest. The transaction finances the expansion of DDL’s production capacity of juice and milk and the construction of a 3.25 MW self-consumption solar photovoltaic (PV) energy generation system with battery storage, to reduce the consumption of fossil fuels.
The financing supports DDL’s growth strategy through productivity increase and diversification beyond rum production to incorporate new and healthier products produced locally, such as milk and fruit juices. At the same time, the transaction strengthens the local supply chain of small and medium enterprises (SME) fruit and vegetable producers, increasing the purchases and the number of farmers that supply DDL.
The financing also contributes to climate change mitigation by helping the company reduce its carbon footprint through financing and technical assistance. IDB Invest is financing the replacement of current imported fossil fuel sources, such as diesel, with renewable energy and energy storage systems. The CTF contribution also incentivizes the adoption of energy efficiency measures by the company. IDB Invest is also providing DDL technical assistance to develop and implement the solar PV energy generation and storage system, and to promote the adoption of energy efficiency measures.
This transaction is aligned with the Caribbean Community (CARICOM) “Vision 25 by 25” which calls for the reduction of the region’s food import bill by 25 percent by 2025. Moreover, these interventions are expected to contribute to six of the United Nation’s Sustainable Development Goals: Affordable and Clean Energy (SDG 7), Decent Work and Economic Work (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12) and Climate Action, (SDG 13).
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 $15.3 billion in asset management and 375 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 Demerara Distillers Limited Demerara
Distillers Limited (DDL) is a public company with shares traded on the Guyana Stock Exchange. Founded in 1952, the company is one of the leading economic groups in Guyana and an internationally recognized producer of rum through its flagship brand "El Dorado". As part of its diversification strategy, DDL has expanded its economic activities in Guyana to the manufacturing and sale of non-alcoholic beverages such as Pepsi, Seven Up, Slice, water, Co2 gas and fruit juices; the distribution of branded products, and other services such as shipping, logistics, contracting and insurance.
About the Climate Investment Funds
With more than ten years of climate action, the $8.3 billion Climate Invest Funds (CIF) is one of the world's largest multilateral climate finance instruments. CIF provides developing countries with climate-resilient, low-carbon development finance. These grants, concessional loans, risk mitigation instruments, and capitalization leverage significant additional financing from the private sector, multilateral development banks (MDBs), and other sources. Five MDBs – the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank (IDB) and the World Bank Group (WBG) – implement CIF-financed projects and programs. The Clean Technology Fund (CTF) is one of the funds of the CIF.