Ara Tiendas I (IFC-40643)

Countries
  • Colombia
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
JERONIMO MARTINS COLOMBIA S A S
The holder of the loan, grant, or other investment.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 93.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 93.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 23, 2018

Disclosed by Bank Nov 9, 2018


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Project Description

According to the bank, the proposed investment consists of a corporate loan of up to US$93 million equivalent in Colombian Pesos to Jeronimo Martins Colombia SAS (“Ara Tiendas” or “Ara”, or the “company”). The company is the Colombian subsidiary of Jeronimo Martins SGPS SA (“JM”, the “Group” or the “Sponsor”), a Portuguese food retailer. The proposed loan will partly finance the expected capital expenditure of the company over the next 2 years, for expansion of its logistic and stores’ infrastructure, and the respective operations across Colombia (the “Project”). JM is the leading food distributor in its home country, Portugal, and successfully entered Poland in 1995, becoming the leading retailer in just over a decade. Ara opened its first store in Colombia in 2013. As of December 2017, Ara operated 389 stores, with an average size of 340 sqm, across three regions of the country: The Coffee Growing Region in the South Zone (Eje Cafetero), the Caribbean Coast in the North Zone, and, since September 2016, Greater Bogota Region in the Center Zone. A significant portion of Ara’s sales come from its own private label products, and they aim to continue to increase that share. The new stores that will be added will have a similar format to that of the existing ones and each store will generate around 7-9 direct jobs. The project will also generate temporary employment during the construction period of its stores and distribution centers, and indirect employment through the supply chain. About 50% of the stores’ employees are expected to be women. All the referred 389 stores are leased. Out of the three main distribution centers, one is on company’s own property (in Barranquilla, in the Caribbean coast region, in South zone), and the other two in Pereira, in the Coffee Growing region, in North Zone) and in Bogotá (center zone) are rented, as well as smaller rented satellite centers. Ara will have closer sourcing to its stores by opening several new DCs in the 3 regions where it has presence already and additionally in other regions where the company also plans to open new stores.

Investment Description
  • International Finance Corporation (IFC)
Private Actors
Contact Information

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