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
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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
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01/21/2020

Approval date

01/21/2020

Signed date

01/22/2020

Sponsoring entity

N/A

Team leader

Olazo Baracco, Ericka

Investment type

Financing requested

N/A

Syndicated amount

USD $ 85,500,000

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.

 

 

 

 

 

 

 



 
 

[1] Source: Vistazo Magazine No. 1250 September 2019, “500 Mayores Empresas del Ecuador” Special.


 

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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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

REVISIÓN AMBIENTAL Y SOCIAL

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ENVIRONMENTAL AND SOCIAL ACTION PLAN - FAVORITA.PDF

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

N/A

POSITION

N/A

PHONE NUMBER

N/A

EMAIL

N/A

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices