USA / PANAMA — IDB Invest approved a financing package of up to USD 58 million for Corporación Favorita C.A. to strengthen the supply chains of its operations in Panama.
The project will finance the expansion of the distribution center of Rey Holding Corp. This investment will benefit the retail sector, generate quality jobs, and increase purchases from local suppliers. The operation also includes a pilot battery energy storage system (BESS) in supermarkets across the country.
The financial package has three components:
- First, it includes a committed secured senior loan of up to $15 million and an uncommitted secured senior loan of up to $25 million provided by IDB Invest.
- Second, it includes up to $15 million mobilised from the Trust Fund for the Development of Latin America and the Caribbean (TADAC) through the Japan International Cooperation Agency (JICA).
- Third, it includes up to $3 million in concessional financing from the United Kingdom Sustainable Infrastructure Program (UK SIP) to support the battery energy storage pilot in supermarkets in Panama.
This combination makes it possible to cover the project’s financing needs, diversify funding sources, and enable innovative investments, and represents another demonstration of the success of “Originate to Share,” IDB Invest’s business model.
IDB Invest will also provide technical assistance to Corporación Favorita to design an Environmental and Social Action Plan aimed at strengthening emergency preparedness and identifying operational risks. The assistance will also include specialised support to optimise refrigerant management, accompany the battery storage pilot, and develop initiatives that promote access to opportunities and women’s safety within Rey Holding’s workforce in Panama.