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IFC Approves Loan to Corporación Grupo Fybeca to Promote Ecuador’s Pharmaceutical Sector


In Bogotá, Colombia:
Darcy Antonin Crowe
Phone: +57 1 313 6449
E-mail: dcrowe@ifc.org

In Washington, DC:
Elizabeth Price
Phone: (202) 458-0387
E-mail: eprice@ifc.org

Quito, Ecuador, June 16, 2016 — The International Finance Corporation (IFC), a member of the World Bank Group, has approved a US$30 million loan to Corporación Grupo Fybeca S.A (Corporación GPF), to promote the development of Ecuador’s pharmaceutical sector and also offer support to a company that has played an important role in the country’s recovery efforts after suffering an earthquake two months ago.

Corporación GPF operates a large retail network in Ecuador, with presence in hard-to-reach regions as well urban centers. IFC’s financing will help the company, whose customers include low-income clients that turn to the retailer for affordable and quality pharmaceutical products, develop a state-of-the-art distribution center.
This facility will lead to lower logistic costs and will improve its storage and transportation standards, which are important for ensuring the quality of the medications.

The financing also serves to support a company that has helped with Ecuador’s recovery efforts after the country suffered on April 16 a devastating earthquake. After the earthquake, Corporacion GPF and its leading brands (Fybeca and SanaSana) invested US$2.5 million in additional inventory to supply critical products to deal with the emergency. The company also continued supplying medicines, first-aid articles, water, and food to the people in the affected areas. Additionally, all stores throughout Ecuador served as collection centers to receive donations of non-perishable items.

“The support of IFC is evidence of Corporación GPF’s constant efforts to contribute to the economic development of Ecuador by providing quality, domestically-manufactured products,” said Luis Enrique Coloma, executive president of the organization.  “This loan serves to demonstrate the transparency, effective management, commitment, and quality products of our company,” he said.  
 
Martin Spicer, IFC Regional Head of Industry for Manufacturing, Agribusiness, and Services in Latin America, underscored the fact that “this long-term loan helps to support one of the largest employers in Ecuador at a time when the country is recovering from the earthquake.”

“We are very pleased to be supporting a company that has an excellent track record for delivering high-quality, lower-cost health products including in underserved regions in Ecuador,” he added

IFC is the world’s largest multilateral investor in private healthcare, managing an active portfolio of about $1.3 billion worth of health investments. IFC investments in service providers, pharmaceuticals and medical technology are aimed at promoting greater access to affordable, high-quality healthcare.

IFC’s strategy in Ecuador focuses on providing financing and technical assistance to companies that have a strong and positive impact on the country’s sustainable economic growth which at the same time trying to support projects that cover climate change, create jobs, and benefit the most disadvantaged population groups. IFC’s support to Ecuador began when it became a member of the institution in 1956, and since that time, it has invested some $685 million in the country.

About IFC:
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, IFC uses its capital, expertise, and influence to create opportunity where it is needed most. In FY15, its long-term investments in developing countries totaled close to US$18 billion, allowing the private sector to play a key role in global efforts to end extreme poverty and boost shared prosperity.  For more information, visit www.ifc.org.

About Corporación GPF:
Corporación Grupo Fybeca S.A. is Ecuador’s leading pharmaceutical retailer with over 634 stores throughout the country. Through the company’s large network in many regions of Ecuador, it provides lower-income customers with access to affordable and quality pharmaceutical and personal care products. The company also actively promotes the distribution of quality generic medicines and private label personal care goods, aiding to provide lower price alternative products and developing local supply chains. For more information, visit www.corporaciongpf.com