China Co-Financing Fund for Latin America and the Caribbean loan provides $25 million loan to Corporación Multi Inversiones for working capital and fixed investment needs (Linked to Project ID#86526)

On November 25, 2020, the China Co-Financing Fund for Latin America and the Caribbean signed a $25 million senior loan agreement with Corporación Multi Inversiones (CMI Alimentos), which is a private food and agribusiness company with operations in Central America and the Dominican Republic. The loan carries a 5-year maturity and a 1-year grace period. Its interest rate is unknown. However, it is known that the borrower was expected to use the loan proceeds to support six of the main companies in the food division of Corporación Multi Inversiones (CMI Alimentos) and ensure their short- and medium-term liquidity in the wake of the COVID-19 crisis, thereby supporting their working capital needs in 2020 and any fixed investments required in 2021. The funds from the China Co-Financing Fund for Latin America and the Caribbean were expected to strengthen food security and income generation in Guatemala, El Salvador and Honduras by strengthening the value chain in two ways: increasing purchases from the company's more than 8,000 suppliers and benefiting the microentrepreneurs who make up its main direct sales channel, the majority of whom are women entrepreneurs. The loan from the China Co-Financing Fund for Latin America and the Caribbean was secured alongside a $50 million loan from the Inter-American Investment Corporation (IDB Invest) with a 5-year maturity and a 1-year grace period.

Additional details

1. The China Co-Financing Fund for Latin America and the Caribbean was established on January 14, 2013 with a contribution of $2 billion by the People's Bank of China. It is administered by the IDB. For more information, see umbrella Project ID#86526. 2. The IDB Invest project identification number is 12167-03 or IDBI-12167-03. 3. Corporación Multi Inversiones (CMI Alimentos) is a private multinational agro-industrial corporation company based in Guatemala. The firm was founded as a family business by Juan Bautista Gutierrez in 1920. It is one of the main food and agribusiness economic groups in Central America, with operations in nine countries and almost 30,000 employees. CMI Alimentos' economic activities include the production of poultry, swine, and pork products, the production of wheat flour, corn, pasta, and cookies, and the operation of fast-food restaurants. CMI Alimentos is one of the largest employers in Central America and the Dominican Republic, with around 30,000 employees.

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