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Quito, Ecuador, December 4, 2015
— IFC, a member of the World Bank Group, signed an agreement with Tonicorp S.A., one of the largest dairy companies in Ecuador, to provide it with a US$60 million loan. This loan will be used to construct a new dairy plant that will benefit small farmers that are crucial suppliers of Tonicorp and essential to Ecuador’s sustainable development.
The loan from IFC, which consists of US$40 million directly from IFC’s own account and $20 million from other investors, is part of IFC’s long-running relationship with Tonicorp. The proceeds will go towards constructing a state-of-the-art facility that will allow Tonicorp to potentially triple its production capacity.
The new plant, which will be located in the city of Guayaquil, will bolster Tonicorp’s relationship with local dairy farmers who supply the company with the raw materials for its production. Tonicorp expect the new facility to meet increases in domestic demand for its products during the next five years while also exploring potential markets to export its products.
“Within the sustainable growth strategy of Arca Continental and Coca-Cola, this investment will have a very positive impact on our operations and will also promote the development of small dairy farmers who are a crucial part of our value chain, and will allow us to serve better the market and meet the consumers’ expectative in a socially responsible way,” said Guillermo Aponte, Tonicorp’s executive president.
IFC’s investments in Ecuador seek to promote sustainable and inclusive economic growth through the private sector. This project with Tonicorp promotes the development of the country’s rural areas by providing direct jobs, particularly to subsistence and lower income raw milk producers.
“This new project confirms our commitment to the sustainable economic growth of Ecuador and companies like Tonicorp, which are essential for the development of the rural sector” stated Carlos Leiria Pinto, IFC’s Andean Region Director.
Juan Gonzalo Flores, IFC’s Senior Investment Officer focused on agribusiness, also commented that “this investment will benefit Ecuador’s small and medium sized enterprises by accessing nearly 110,000 points of sale nationwide ranging from mom and pop stores to kiosks and coffee shops. Due to rising demand, investments such as these to increase production capacity, combined with constant product innovation, will enable an important player like Tonicorp to reach even more points of sale.”
IFC’s strategy in Ecuador focuses on providing financing and technical assistance to companies in high-development impact sectors such as exports, while supporting projects that help address climate change, generate employment, and benefit the most marginalized populations. Since Ecuador became a member of IFC in 1956, IFC has invested more than US$460 million in the country’s private sector seeking to support the country’s sustainable economic growth.
About Tonicorp
Tonicorp, an affiliated company of Arca Continental and The Coca-Cola Company, is a holding company comprised by the following entreprises: Dairy Industries Toni S.A. (Toni), Heladosa S.A. (Topsy), Ecuadorian Plastics S.A., Dipor and Cosedone. The company has extensive experience leading the dairy segment and functional foods with high added value in Ecuador since 1970. It contributes to the welfare of the community and the environment, through its healthy products and shared value programs. For more information, visit
www.tonicorp.com
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, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly US$18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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