See below full press release issued by the Inter-American Development Bank (IDB) Group:
IDB Invest, a member of the IDB Group, approved a US$4 million loan for an 8-year tenor to Fernandes Guyana Enterprise (FGE), a subsidiary of Fernandes Group. Fernandes Group is one of the main economic groups in Suriname and the market leader in most of the industries in which it operates, including the food sector.
The transaction supports Fernandes Group’s growth strategy outside of Suriname, by financing an increase in FGE’s current bakery production and distribution capacity in Guyana. This will lead to higher and more efficient local production of bread products, which are an essential part of the Guyanese diet, and the introduction of new healthier products, while taking advantage of the projected higher spending, additional customer base and new consumption trends in the local market.
The financing also contributes to mitigate the economic and social effects of the Covid-19 crisis, by protecting food security, promoting new and more specialized employment, and strengthening market linkages in Guyana. FGE will almost double the number of local suppliers and distributors reached. IDB Invest will play an important role by providing the Company the long-term financing required, currently scarce in the local market.
The transaction potentially contributes to four of the United Nations Sustainable Development Goals (SDGs): No poverty (SDG 1), Decent work and economic work (SDG 8), Industry, innovation and infrastructure (SDG 9), and Reduced inequalities (SDG 10). Moreover, through this transaction, IDB Invest will support Fernandes Guyana to implement environmental and social best practices, aligned with international standards.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Fernandes Group (client)
Fernandes Group, a family business with more than 1,200 employees, is one of Suriname’s largest economic groups operating in the following sectors: Bakery, Bottling Automotive, Ice Cream and Distribution.