The Inter-American Investment Corporation Approves A US$10 Million Loan To Comohogar S.A., Part Of Ecuador’S Supermercados La Favorita Group

05/14/2008

IIC loan will contribute to the development of the private sector in the region

Washington, D.C.- The Inter-American Investment Corporation (IIC) approved a US$10 million loan to Comohogar, S.A., a company that sells household and kitchen products in Ecuador. Comohogar started operations in Quito, has grown successfully, and now has ten establishments in Ecuador’s major cities. The company has two types of stores: Sukasa for high-end products and Todohogar for products in lower price ranges.

The IIC loan will provide Comohogar with stability and liquidity to finance its permanent working capital requirements. The proceeds will be used to finance medium-term accounts receivable and inventory, in keeping with Comohogar’s sourcing and sales policies. The operation will also stimulate demand for local and regional products, given that approximately 30% of the products that Comohogar sells are sourced in Ecuador or in Andean region countries.

This operation is expected to further the development of the private sector and increase the supply of products on reasonable financing terms at Todohogar stores. It will also help Comohogar expand its network of stores serving middle-income households. It is anticipated that this strategy will foster competition and result in improved service for consumers.

The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.


 

Contact: Javier Hernández (in Washington D.C.)

Telephone: (202) 623-3992

Email: javierh@iadb.org