Gloria, S.A.

completed

Gloria, S.A is a diversified conglomerate with three principal business divisions: food, paper products, and pharmaceuticals. The food division (90% of sales) is involved primarily in the production, sale, and distribution of dairy products including evaporated, condensed, and UHT milk, yogurt, and cheese. The pharmaceutical division (5% of sales) produces and distributes a range of proprietary and generic prescription and over-the-counter medicines and cosmetic products. The paper division (5% of sales) manufactures cartons and corrugated board (30% of its output satisfies 100% of the company’s own packaging needs, while 70% is sold to third parties). The proposed project involves investments with the following key objectives: (i) consolidate Gloria’s dairy sector operations into a new, state-of-the-art production facility in Huachipa, near Lima; (ii) leverage Gloria’s brand name and distribution network by expanding its range of branded consumer food items; and (iii) expand and rationalize Gloria’s paper division with a new plant in Huachipa. IFC has been requested to make a corporate A Loan to Gloria, the proceeds of which would mainly be used to refinance debt assumed by the company to carry out the above investment program.