Grupo de Supermercados Wong

inactive

The project consists of providing Citibank del Perú, S.A. ("Citi" or "Citibank") with a guaranty that will enable it to provide financing for a major food distribution company. This company will pass the benefit on to its small and medium-size suppliers in order to decrease their financing costs and enable them to invest in improving product quality and cut delivery times. The IIC’s guaranty for Citibank would enable this leading financial institution to broaden a program that currently exists with a select group of clients, in order to strengthen supply chains by providing companies with financing for working capital. Companies—principally small and medium-size producers—will thus have a way to improve their liquidity on better terms.Citibank has had this working capital financing program for supporting select clients’ supply chains for almost eight years. However, the way the program was designed has kept interested smaller suppliers from benefiting because the credit lines for clients under the program have reached their limit. The goal is therefore to extend the line for small and medium-size companies only, with a guaranty from the IIC enabling Citi to hedge its losses in the event of client default.