Grupo Monge

completed

Grupo Monge (or the company) is a leading family-owned, Central American retailer of consumer electronics, household appliances and home furniture. The company has 325 retail stores across five countries, offering products mainly to low and middle-low income consumers, and employing more than 5,500 permanent staff. Grupo Monge has a presence in Costa Rica (since 1969 with 180 stores), Nicaragua (since 2000 with 52 stores), Honduras (since 2004 with 36 stores), Guatemala (since 2006 with 10 stores) and El Salvador (since 2006 with 47 stores). Grupo Monge operates in three lines of business: - the retail segment, which includes three different formats with separate brands catering to different target clients; - the wholesale segment in Costa Rica; and - the consumer finance segment, through which it provides consumer financing for store purchases. Over the next three to four years, the company plans to: - expand its retail network in Guatemala, Honduras and El Salvador; and - refinance a major part of its short- and long-term debt. The company expects to finance the project with a combination of shareholders’ equity, long-term debt and internal cash generation. Grupo Monge has requested IFC to provide loans of up to $50 million.