IDB Invest backs Tía expansion plans
May 15, 2020
Multilateral lender offers $40 mln for the retailer to open 100 new stores in the next few years
Editor's note: LatinFinance is making some of its most important coronavirus-related material available to all readers. Visit our coronavirus section for all our coverage and sign up to receive the Daily Brief newsletter in your inbox every morning.
IDB Invest, part of the Inter-American Development Bank (IDB), said it provided a $40 million to cover the expansion plans of the retail chain Tía in Ecuador.
Tía plans to open 100 new stores in the next few years, including many in low-income areas that lack access to quality food products and basic necessities, IDB Invest said in a press release on Wednesday.
Tía will use the 10-year loan to increase purchases from suppliers, made up of micro, small and medium-sized enterprises (MSMEs). It will also use some of the money to advance payments for long-standing MSME suppliers that have lost sales during the coronavirus pandemic, according to IDB Invest.
The multilateral lender will advise Tía on "identifying business opportunities that generate shared value in the supply chain" with a focus on small business owned by women, people of African descent and people with disabilities.
IDB Invest said providing funds to the food industry in Latin America is a priority as a response to the coronavirus pandemic.
Before the outbreak spread to South America, IDB Invest arranged $236 million in financing for Corporación Favorita, the largest supermarket chain in Ecuador, to buy more products in Ecuador and Panama, open new locations and generate renewable electricity, among other plans.
IDB Invest also led a $50 million loan for CMI Alimentos to expand its operations in Guatemala, El Salvador and Honduras. CMI Alimentos, the food division of the Guatemalan conglomerate Corporación Multi Inversiones (CMI), operates the Pollo Campero and Pollo Granjero fast food restaurant chains, among others, and produces tortillas, cookies, pasta, poultry, pork and processed foods.