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IDB Invest Proparco Difare
IDB Invest and Proparco supported pharmaceutical distributor DIFARE in the issuance of Ecuador's first sustainability-linked bond and the first in the pharmaceutical sector in the country. The $50 million issuance with a five-year tenor will be used primarily to finance capital and renewable energy investments. IDB Invest, as anchor investor, will subscribe USD 28.5 million of the bond, and Proparco USD 21.5 million.

The sustainable financial instrument will allow DIFARE to reduce its carbon footprint by at least 50% and decrease greenhouse gas emissions related to the transportation of goods by at least 20%. In addition, the issuance seeks to increase the availability of medicines through greater coverage of the pharmacy network nationwide, which will boost employment and create new job opportunities.


“This issuance not only represents a milestone for Ecuador, but also an opportunity for the pharmaceutical sector to move towards more sustainable models. At IDB Invest, we continue to support our clients in implementing innovative financial solutions to mitigate climate change and reduce their carbon footprint,” said James P. Scriven, CEO of IDB Invest.


“For DIFARE, being the first to issue the sustainability-linked bond in Ecuador reflects our commitment to integrating good practices throughout our processes and operations. This step towards a more sustainable future reinforces our purpose of offering healthcare within everyone’s reach while actively working to generate a positive impact on society and the environment,” said Carlos Cueva Mejía, CEO of Grupo DIFARE.


Scarlett Carré de Malberg, Deputy Head of Debt Department, states: "Proparco is proud to subscribe to the first corporate Sustainability-Linked Bond in Ecuador and to support Difare in its efforts to reduce its carbon footprint and contribute to building a more sustainable pharmaceutical sector."


Additionally, to strengthen DIFARE's commitment to good corporate governance practices, IDB Invest will provide advisory services to improve the governance structure according to the best international standards. Specialized support will also be offered to increase gender opportunities in its logistics operations, including training programs, internships, and gender and diversity training.


IDB Invest led the design, conceptualization and identification of the key performance indicators (KPIs), the Sustainability Performance Targets (SPTs), and supported the development of the Reference Framework for the issuance. The second-party opinion was prepared by Moody’s Ratings, confirming the alignment of the framework with the Principles of the International Capital Market Association (ICMA).The deal with DIFARE is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12), Climate Action (SDG 13), and Partnership for the Goals (SDG 17).