📋 Tender Overview
E&S CATEGORY tooltip
B
COUNTRY
Brazil
SECTOR
Digital Economy
STATUS
In implementation
DISCLOSED DATE
05/30/2025
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
PROJECTED BOARD DATE tooltip
05/09/2025
APPROVAL DATE
05/09/2025
SIGNED DATE
05/23/2025
SPONSORING ENTITY
Magazine Luiza S.A.
INVESTMENT OPERATIONS DEPARTMENT CONTACT
Corporates Division
INVESTMENT TYPE
Loan & Guarantee
SYNDICATED AMOUNT
USD $ 25,000,000
FINANCING AMOUNT
USD $ 50,000,000
CURRENCY
USD
Project scope and objective
The main objective of the project is to support Magalu in its digital transformation strategy, which includes planned investments, especially in technology, over the next two years (2025–2026). The main initiatives include: (i) enhancement of the digital marketplace for retailers and MSMEs; (ii) provision of a multichannel fulfillment platform to optimize logistics and reduce costs; (iii) launch of Magalu Ads to improve advertising for small businesses; (iv) modernization and promotion of financial inclusion for consumers and entrepreneurs through Magalu Fintech; (v) implementation of AI focused on task automation, logistics optimization, and improving customer experience; and (vi) development of Magalu Cloud, the first Brazilian cloud service made available to Magalu’s extensive network of MSMEs that sell products and services on its marketplace, representing a significant milestone for both the company and the country.
The proposed financing consists of a senior unsecured loan of US$100 million equivalent in R$, divided into two tranches: (i) US$50 million in a committed tranche; and (ii) US$50 million in an uncommitted tranche. Tranche II is subject to the receipt of Magalu’s 2025 financial statements and approval by IDB Invest. The IDB Invest loan will be granted alongside a US$150 million IFC A/B loan, under the same commercial terms.
