Compañía Azucarera Salvadoreña S.A. De C.V. Receives A Loan Of Up To US$6 Million From IIC
05/24/2010Loan proceeds to benefit the agriculture and agribusiness sector
Washington, D.C. - On May 25, 2010, the Inter-American Investment Corporation (IIC) approved a loan of up to US$6 million to Compañía Azucarera Salvadoreña S.A. de C.V. (CASSA), the main producer and exporter of sugar in El Salvador with about 47% of the country’s total production. The sugar industry represents 2.3% of the country’s GDP.
This operation seeks to provide short-term, periodically-renewable financing for the company's permanent working capital requirements. The IIC loan proceeds will also help the company provide its sugar cane suppliers with financing and specialized assistance as most of them are small, independent growers who work small areas of land and need the technical advice CASSA provides. CASSA is the main employer in the Salvadoran sugar sector, which employs more than 70,000 people directly and indirectly. CASSA's main operation is the Central Izalco mill, which, in addition to manufacturing sugar and molasses for the domestic and international markets, produces electricity with a 60 megawatt cogeneration plant. For more information about CASSA, visit www.grupocassa.com.
According to Juan Fonseca, investment officer in charge of the operation, "With this operation the IIC is not only supporting a key sector in El Salvador’s agriculture-based economy, but also recognizing CASSA as a pioneer in initiatives that put it at the forefront in the area of corporate social responsibility in El Salvador."
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Juan Fonseca (in Costa Rica)
Telephone: + (506) 2523-3348