Discount Retail Chain Tiendas ARA, got a sustainability-linked loan of up to US$120million from the International Finance Corporation (IFC), a member of the World Bank Group. ARA Colombia is owned by Portugal's Jerónimo Martins.
The funds will be used to build two EDGE-Advanced certified distribution centers in Bogota and Cali, which will allow the company to strengthen its logistics network and expand in small and medium-sized cities.
The loan aims to improve the logistical and operational capabilities of Tiendas Ara, which operates 1,349 stores in 374 municipalities in 24 departments, and has gained ground in the retail food sector in Colombia. This investment seeks to increase access to consumer products for middle- and low-income families in an environment of high inflation and economic inequality in the country.
"We are pleased to support Tiendas Ara in its expansion efforts and contribute to the development of the retail sector in Colombia," said Elizabeth Martínez de Marcano, IFC's regional director for Colombia, Mexico, Central America and the Caribbean. "This investment aligns with our goals of promoting inclusion, innovation and sustainability. By supporting the expansion of Tiendas Ara, we can improve access to affordable retail services and contribute to Colombia's economic development."
Nuno Sereno, CEO of Jerónimo Martins Colombia, highlighted the company's commitment to the local market.
"Eleven years ago, we committed to democratizing access to food and other quality products in Colombia. Our long-term commitment is maintained with this loan, which also underscores our practices in social and environmental issues," said Sereno. "Our logistics network will be strengthened with the new distribution centers in Cota and Cali, which will allow us to supply hundreds of stores in the country."
In an economic context marked by inflation and pressure on food prices, the discount sector has become more relevant, with Tiendas Ara focusing on pricing strategies and cooperation models with local suppliers. Founded in 2013, the company has built a network that seeks to respond to the needs of consumers in the areas where it operates.
Distribution centers will have to meet EDGE-Advanced sustainability standards, with a projected 40% reduction in energy consumption and 20% reduction in water use. These requirements respond to Colombia's climate change goals and reflect the growing interest in sustainable practices within the retail sector.
Read more: Tiendas Ara receives US$120 million loan from IFC for logistics expansion - Forbes Colombia
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