It is the first sustainable factoring line structured by BID Invest under the parameters of circular economy
This operation will allow BID Invest to grant an economic incentive to Arteche's local suppliers in Mexico, reducing the interest rate applicable to the advance payment of their invoices
Suppliers, mostly MSMEs, that meet the sustainability requirements aligned with Arteche's Strategic Sustainability Plan will be able to benefit from this line
Mungia (Bizkaia), April 18, 2023- Arteche strengthens its presence in the Americas by signing the first sustainable reverse factoring facility with BID Invest for a maximum authorized amount of US$20 million. This operation will have a positive impact on the company's production plants in Mexico and, later on, is expected to be extended to Grupo Arteche's subsidiaries in Brazil and Argentina, facilitating access to financing for micro, small and medium-sized companies without the need to incur financial debt and at very competitive economic terms.
Sustainability is one of Arteche's main pillars and an essential part of its 2030 Strategic Plan; it is a transversal pillar that extends beyond the scope of the company. The value chain with which Arteche operates is no stranger to this fundamental principle; therefore, this line promotes the company's values and commitment to society and the environment.
In this sense, BID Invest offers financing solutions to private entities in Latin America and the Caribbean to help promote the economic and social development of these geographies, an aspect that fits perfectly with Arteche's philosophy.
Arteche and BID Invest have launched this initiative together with eFactor, Mexico's leading working capital financing fintech. Through its platform, eFactor acts as a great connector between the participants (Arteche, the suppliers and BID Invest), allowing them to operate in real time and optimizing the flow of goods, funds and commercial information.
Sustainable criteria
The reverse factoring operation that Arteche and BID Invest have agreed is the first to incorporate 100% sustainable criteria into the financial solution. This operation with BID Invest will allow the advance payment of invoices issued to Arteche by Mexican, Brazilian and Argentine local suppliers of the company in Mexico, reducing the interest rate applicable to the advance payment of their invoices to those that comply with the sustainability requirements.
The agreed environmental requirements will require the company's suppliers to work under circular economy protocols. Suppliers that achieve the targets set for sustainable packaging will be eligible for a reduction in the interest rate applicable to the discount on their invoices issued to Arteche.
With this operation, Arteche is positioned as the first company chosen by BID Invest to sign a reverse factoring line with sustainability criteria, opening the way for other companies that are considering this type of initiative to promote and value sustainability efforts throughout their value chain.
About Arteche Group
Founded in 1946, the Arteche Group operates in the electrical sector, from generation to distribution, specializing in the electrical equipment, components, and solutions industry. Within this framework, the Arteche Group is among the TOP 3 world leaders in the instrument transformer market, number 1 in the auxiliary relay market, and maintains a regional leadership position in the rest of the products, especially those aimed at highly demanding and value-added markets, such as renewable generation and the railway sector.
The Arteche Group's business is focused on enabling the transmission and distribution of electric power from any generation plant to the end user with efficiency, quality, and reliability. This is why the company invests recurrently in R&D&I, with the intention of improving the quality and efficiency of its products, innovating in the development of new products, and offering the customer a differential added value. Arteche is currently present in more than 175 countries with commercial distribution capabilities; it has 13 factories in Europe, America, Asia and Oceania, including 6 research centers; and employs more than 2,600 people worldwide.
About BID Invest
BID Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. BID Invest finances sustainable enterprises and projects to achieve financial results and maximize economic, social and environmental development in the region. With a $15.3 billion asset management portfolio and 375 clients in 25 countries, BID Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
About eFactor
eFactor is a Fintech company, leader in financing and supply chain working capital optimization solutions, which started in 2009 with the vision of helping large buying organizations to improve their working capital by extending payment terms without increasing the burden on their supply chain, and serving their suppliers by giving them the option to obtain early payment at attractive financing rates, all this through electronic factoring. Through its platform, eFactor provides immediate liquidity to more than 16,000 suppliers, with funds from the most important financial institutions in Mexico and other countries. The most important value proposition for customers has been a multi-funding, multi-region and multi-currency solution. eFactor has important partnerships with the IFC (World Bank Group), BID Invest, FIRA, Bancomext and PrimeRevenue.. It has today around 150 corporates and 20,000 users in more than 30 countries.
