Corporación Favorita’s $280 Million Credit Facility

Flor & Hurtado, Hogan Lovells and Lexvalor advised on the transaction

On January 22nd 2020, the Inter-American Development Bank (IDB) and the Inter-American Investments Corporation (IDB Invest) closed a $285,5 million secured loan facility with Corporacion Favorita C.A., the largest retailer in Ecuador, owner of Supermaxi and other important supermarket brands in the country.

The funds will be used to promote La Favorita’s investment plan until 2022. La Favorita has informed that the balance between the financial, social and environmental areas has permitted this line of credit which will allow the development of new projects, including adopting new technologies for innovation and optimization of its productive processes.

Corporacion Favorita. Corporacion Favorita CA is an Ecuador based company engaged in the organization, installation and administration of stores, markets and supermarkets. The company has a business presence in many international countries also. Its brands include SUPERAKi, GRANAKi, Megamaxi, Supermaxi and others.

The Ecuador based firm of Flor & Hurtado, Abogados, advised the Lenders as local counsel, Hogan & Lovells advised the Lenders on international law matters. Lexvalor Abogados advised the Borrower as local counsel.

Flor & Hurtado advised with a team including Mario Flor (Picture), Alejandra Soriano, Alejandro Perez and David Cruz.

In US, Hogan Lovells advised the lenders with Wylie Levone, Markley Schlegel and Senal Ranatunga.

Lexvalor advised Corporación Favorita with a team including Alfredo Peñaherrera, Ricardo Peñaherrera and Santiago Aguirre.

Involved fees earner: David Cruz – Flor & Hurtado; Mario Flor – Flor & Hurtado; Alejandro Pérez Arellano – Flor & Hurtado; Alejandra Soriano – Flor & Hurtado; Wylie Levone – Hogan Lovells; Senal Ranatunga – Hogan Lovells; Markley Schlegel – Hogan Lovells; Santiago Aguirre – Lexvalor Abogados; Ricardo Peñaherrera – Lexvalor Abogados; Alfredo Peñaherrera Wright – Lexvalor Abogados;

Law Firms: Flor & Hurtado; Hogan Lovells; Lexvalor Abogados;

Clients: Corporación Favorita; IDB Invest; Inter-American Development Bank;

Author: Ambrogio Visconti.