FINPYME Credit finances growth of textile sector in Nicaragua

09/26/2012

US$600,000 loan will further the modernization and strengthening of Irene S.A.

Managua, Nicaragua, September 26, 2012 — The Inter-American Investment Corporation (IIC) and Irene S.A. have signed a loan agreement for up to US$600,000 that will help the textile company boost its competitiveness.

The loan, part of the FINPYME Credit program, is for equipping warehouses and upgrading manufacturing equipment. Part of the proceeds of the loan will be used as working capital for the purchase of materials.

“With the IIC’s financial assistance, we will increase the value added of our products, thus contributing to the development of the textile industry in Nicaragua,” stated Juan Carlos Jacir, managing director of Irene.

“With this loan, Irene will create some 1,100 direct and indirect jobs and increase the efficiency of its internal procedures to boost its competitiveness,” noted Luisa Mayorga, IIC senior investment analyst in charge of the operation. “The IIC is proud to lend its support to stimulate the growth and modernization of SMEs in Nicaragua.”

Irene was established in Nicaragua in 2008 and operates under the tax exemption regime applicable to free trade zones. The company produces apparel for export to the U.S. mass consumer market. It also provides parallel services for clothing manufacturing, such as silk screening, heat transfer printing, garment decoration, fabric cutting, and packaging. Irene belongs to a group of family businesses with over 25 years in the Central American market.

FINPYME Credit supports SMEs in Latin America and the Caribbean that wish to increase their sales through working capital and investments in fixed assets. Loans under the program range from US$100,000 to US$600,000 and are available to businesses from different productive sectors.

About the IIC

The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2011, the IIC reached the symbolic one-billion-dollar mark in disbursements of own and third-party funds. Throughout our history, we have benefited more than 1.6 million SMEs in Latin America and the Caribbean. For more information on the IIC’s activities, visit www.iic.org.

Contact: Luisa Mayorga

Telephone: +505 (2) 264-9140 in Managua, Nicaragua

Email: lmayorga@iadb.org