IFC Supports Growth and Competitiveness of
Central American Retailer, Grupo Monge
In Washington, D.C.:
Carmen Powell
Phone: +1 (202) 473-4982
E-mail: cpowell@ifc.org
Adriana Gómez
Phone: +1 (202) 458-5204
E-mail: agomez@ifc.org
Washington, D.C., July 29, 2008—IFC,
a member of the World Bank Group, today signed an agreement to help Grupo
Monge Holding S.A., a family-owned retailer of household goods and electronics
in Central America, expand its operations in Costa Rica, El Salvador, Guatemala,
Honduras and Nicaragua, increasing access to consumer credit for low-income
customers.
IFC’s financing of up to $50 million is its first loan in which the client
has the flexibility to draw from U.S. dollars as well as Costa Rican colones
or Guatemalan quetzales through the swap market. This will promote
development of the long-term local currency swap markets and benefit other
Central American companies with foreign exchange risk exposures on their
balance sheets.
“IFC has now become an essential partner,” said Gaston Monge, Chief Executive
Officer of Grupo Monge. “IFC’s value-added went beyond a loan with
tenor and structure that were otherwise unavailable. Their team has
contributed significant advice to enhance the quality of our operations
and facilitate compliance with the environmental and social standards of
the World Bank Group.”
“IFC’s financing will support Grupo Monge’s long-term expansion strategy
to consolidate its regional market position. IFC has played a countercyclical
role in supporting Grupo Monge at a time when access to capital markets
has been difficult in Central America,” said Atul Mehta, IFC Director
for Latin America and the Caribbean.
IFC’s total committed portfolio in Central America as of May 2008 was
$719 million. IFC is expanding its operations in this region, focusing
on supporting regional integration through private sector participation
in infrastructure projects. IFC’s strategy also looks to strengthen the
financial sector by supporting access to finance for small and medium enterprises
and housing finance. IFC also aims to help firms involved in agriculture
and other services improve their competitiveness and expand within Central
America and beyond.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC's
vision is that people should have the opportunity to escape poverty and
improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
About Grupo Monge
With 325 retail stores across Costa Rica, El Salvador, Guatemala, Honduras,
and Nicaragua, Grupo Monge is a leading family-owned retailer of household
goods and electronics in Central America, with a strategic focus on reaching
low- and middle-income consumers. The company operates three lines of business:
retail, which includes store brands catering to customers in various income
groups; wholesale, which sells and distributes products, including the
company’s private labels; and consumer finance, which extends credit to
customers for in-store purchases and constitutes one of Grupo Monge’s
core competitive advantages.
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