GTSF Tiendas Comercial Mexicana

completed

This project is proposed under the Global Trade Supplier Finance program (“GTSF” or the “Program”) approved by the IFC Board on September 21, 2010 (Original Project #28723). Under GTSF, IFC provides short-term financing to suppliers (“Suppliers”) in emerging markets selling to large companies (“Buyers”) on open account terms. In 2012 IFC provided Controladora Comercial Mexicana (“Comerci”), the fourth largest retailer in Mexico, with a GTSF-line of $30 million (Project # 31999). However, 70% of Comerci was acquired by Soriana (or “the company”) (the second largest retailer in Mexico) and Soriana intend to continue Comerci’s existing GTSF line whereby this will be split into two i.e., $10 million will be retained by Comerci, and $20 million will be acquired and used by Soriana. IFC previously assessed the GTSF line for Comerci and this project was disclosed on 17 February 2012. Thus this Environmental and Social Review Summary document focuses specifically on Soriana and the provision of the $20 million GTSF line to this company. Under this project, IFC will provide financing to Soriana’s suppliers based primarily in Mexico to support them in providing goods or services to the stores that were formerly owned by Comerci. The project is expected to reach 700 Suppliers, the large majority of which will be SMEs.