US$10 Million Credit Line Buoys Ecuador's Household Goods Sector
IIC credit line to Comohogar will benefit a network of some 50 SME suppliers
Washington, D.C., July 16, 2012 — The Inter-American Investment Corporation (IIC) has approved a credit line for Comohogar S.A. of up to US$10 million that will enable the Ecuadorian home goods retailer to expand its network of outlets and finance its working capital needs.
Comohogar is a retailer of appliances, household items, linens, and other products for the home. The company will use the credit line to open seven new stores in and around Riobamba, Ambato, and Cumbayá between 2012 and 2013. The credit line will support a value chain of some 50 small and medium-sized enterprises (SMEs) in Ecuador that market their products through Comohogar.
In the words of Javier Hernández, the IIC's investment officer in charge of this operation, “With these new investments, Comohogar is expected to expand its coverage in Ecuador and grow its sales by 50% over the next four years. Comohogar will also use these funds to set up a credit program on competitive terms for its customers that will enable them to purchase basic household goods, thus improving the quality of life for Ecuadorian families."
This is the IIC's second operation with Comohogar. Following approval of the first loan in 2008, the company doubled its retail outlets and increased sales by 66% over a 5-year period.
In business for over 25 years, Comohogar is one of Ecuador's foremost retailers of household and kitchen items. It has a network of more than 25 outlets in the country's major cities and approximately 500 direct employees. With the opening of its new retail outlets, the company will likely add another 100 or so employees by the end of 2013.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2011, the IIC reached the symbolic one-billion-dollar mark in disbursements of own and third-party funds. Throughout our history, we have benefited more than 1.6 million SMEs in Latin America and the Caribbean. For more information on the IIC’s activities, visit www.iic.org.
Contact: Javier Hernández
Telephone: +1 (202) 623-3994