Eight-Year Loan IIC Grants US$4 Million Loan To Invertec Pesquera

10/10/2001

Chile could become the world's premier producer of salmon WASHINGTON, D.C. The Inter-American Investment Corporation (IIC) announced on October 11, 2001 the approval of a $4 million loan to Invertec Pesquera Mar de Chiloé S.A.; a total of $13 million is required to carry out the project.

The purpose of the project is to increase the company's production capacity and improve its technology, marketing, and environmental management in order to attain a leading position and remain competitive in a global market. The project will be carried out over a four-year period.

Invertec Pesquera is a vertically integrated sea farming company that produces mainly Atlantic salmon, Pacific salmon, and trout in the Chiloé region in southern Chile.

The project should significantly increase the company's salmon and trout farming capacity: from 20,000 tons in 2001 to 35,000 tons by 2005. IIC participation in the project is key because-among other reasons-it will strengthen a strategic sector in Chile. Because of Chile's competitive advantages, it is in a position to become the world´s largest producer of salmon by the end of the decade, provided it has access to financing on appropriate terms.

The project will also decentralize employment generation; it is expected that 400 direct jobs and 715 indirect jobs will be created in southern Chile. With 455 employees, Invertec Pesquera's existing plant is one of the Chiloé region's largest companies.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steve Reed/David Levy

Telephone: (202) 623-3981

Email: stevenr@iadb.org