Company name
Magazine Luiza S.A.
Project number
15157-01
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
Brazil
Sector
Digital Economy
Status
In implementation
Disclosed date
05/30/2025
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
05/09/2025
Approval date
05/09/2025
Signed date
05/23/2025
Sponsoring entity
Magazine Luiza S.A.
Investment Operations Department Contact
Corporates Division
Investment type
Syndicated amount
USD $ 25,000,000
Financing amount
USD $ 50,000,000
Currency
USD
Project scope and objective
The main objective of the project is to support Magalu in its digital transformation strategy, which includes planned investments, especially in technology, over the next two years (2025–2026). The main initiatives include: (i) enhancement of the digital marketplace for retailers and MSMEs; (ii) provision of a multichannel fulfillment platform to optimize logistics and reduce costs; (iii) launch of Magalu Ads to improve advertising for small businesses; (iv) modernization and promotion of financial inclusion for consumers and entrepreneurs through Magalu Fintech; (v) implementation of AI focused on task automation, logistics optimization, and improving customer experience; and (vi) development of Magalu Cloud, the first Brazilian cloud service made available to Magalu’s extensive network of MSMEs that sell products and services on its marketplace, representing a significant milestone for both the company and the country.
The proposed financing consists of a senior unsecured loan of US$100 million equivalent in R$, divided into two tranches: (i) US$50 million in a committed tranche; and (ii) US$50 million in an uncommitted tranche. Tranche II is subject to the receipt of Magalu’s 2025 financial statements and approval by IDB Invest. The IDB Invest loan will be granted alongside a US$150 million IFC A/B loan, under the same commercial terms.
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Contact information
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Client Contact
PHONE NUMBER
(11)9-4714-0963
POST OFFICE ADDRESS
Rua Voluntários da Franca No.1.465, in the City of Franca, State of Sao Paulo, CEP 14400-490, Federative Republic of Brazil
IDB Invest Contact
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 [email protected] 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 [email protected] or [email protected] or calling +1(202) 623-3952.
IDB Invest has zero tolerance to reprisal or retaliation against anybody who voices its opinion or opposition to IDB Invest-financed projects.
Escopo do projeto e rótulo objetivo
O principal objetivo do projeto é apoiar a Magalu em sua estratégia de transformação digital, que abrange investimentos planejados, especialmente em tecnologia, para os próximos dois anos (2025-2026). As principais iniciativas incluem: (i) aprimoramento do marketplace digital para varejistas e MPMEs; (ii) oferta de uma plataforma multicanal de fulfillment para otimizar logística e reduzir custos; (iii) lançamento do Magalu Ads para melhorar a publicidade de pequenos negócios; (iv) modernização e promoção da inclusão financeira para consumidores e empreendedores por meio do Magalu Fintech; (v) implementação de IA focada em automação de tarefas, otimização logística e melhoria da experiência do cliente; e (vi) desenvolvimento do Magalu Cloud, o primeiro serviço de nuvem brasileiro disponibilizado à ampla rede de MPMEs da Magalu que vendem produtos e serviços no seu marketplace, representando um marco significativo para a empresa e o país.
O financiamento proposto consiste em um empréstimo sênior sem garantia de US$100 milhões equivalente em R$, dividido em duas parcelas: (i) US$50 milhões em uma parcela comprometida e (ii) US$50 milhões em uma parcela não comprometida. A Tranche II está condicionada ao recebimento das demonstrações financeiras de 2025 da Magalu e à aprovação do BID Invest. O empréstimo do BID Invest será concedido em conjunto com um empréstimo IFC A/B de US$150 milhões, sob os mesmos termos comerciais.
Revisão ambiental e social
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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.
MAGALU ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
276.5 Kb
MAGALU ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)
184.3 Kb