Assisting DIFARE with its environmental and climate transition

Distribuidora Farmaceutica Ecuatoriana (DIFARE) is the largest pharmaceutical company in Ecuador. It has two main business segments: the direct distribution of pharmaceuticals, personal care products and medical supplies to more than 10,000 sales points (hospitals, pharmacies, stores) in the country, and the management of pharmacies through four brands 4 (Farmacias Cruz Azul, Pharmacys, Dromayor, Farmacias Comunitarias).

DIFARE has issued Ecuador’s first Sustainability-Linked Bond, a bond linked to two climate indicators. Proparco has subscribed $21.5 million and IBD $28.5 million. Out of this total of $50 million: 

- $41 million will be used to purchase the stock required for the company’s business

- $9 million will be used for CAPEX, in particular for the installation of solar panels at DIFARE’s distribution center, as well as for works and the acquisition of equipment for pharmacies.

The expected impacts of this financing are as follows:

- Support for more than 5,000 direct jobs in the company over the next 5 years, and more than 12,000 indirect jobs in the value chain

- DIFARE takes climate change issues into account in its activity, which is demonstrated by its commitment to reduce its emissions, as well as the installation of solar panels, which amount to 13% of climate mitigation co-benefits

- Support for providing new or improved access to medicines for about 45,000 additional beneficiaries over the next 5 years  

The project will thereby contribute to the achievement of SDG 3 (Good health and well-being), SDG 8 (Decent work and economic growth) and SDG 10 (Reduced inequalities).