IIC and Emprendimientos Hoteleros S.A.E.C.A. sign loan agreement of up to US$1.5 million

01/04/2011

With this operation, the IIC continues to support Paraguay’s hotel sector

Washington, D.C. - The Inter-American Investment Corporation (IIC) signed a loan agreement of up to US$1.5 million with Emprendimientos Hoteleros S.A.E.C.A. (EMHOSA) in Paraguay. This project seeks to provide EMHOSA with financing in order to purchase new equipment for the Sheraton Asunción Hotel and expand its facilities, as well as for partial working capital financing.

According to Hernando Lesme, IIC Investment Officer in charge of the operation, "With this operation, the IIC is supporting a key sector of Paraguay’s economy and promoting the country’s infrastructure development. In addition, EMHOSA will be able to build upon its nearly six-year track record of operations through ongoing expansion and remodeling projects that will enable it to adapt to the specific needs of its clients in a more functional and efficient manner. This expansion is expected to increase the demand for goods and services, the majority of which will be provided by local SMEs."

According to Alejandro Laufer, Director of EMHOSA, "The Sheraton Asunción Hotel is the leading hotel in the business travel segment in Asunción, as well as for business and social events. The recognized quality of its services and facilities now undergoing expansion will enable it to meet increased demand and satisfy the high expectations of its corporate clients."

The signing took place in Asunción, Paraguay. Mr. Jorge Dos Santos and Mr. Alejandro Laufer signed on behalf of EMHOSA, and Mr. Hernando Lesme on behalf of the IIC.

About Emprendimientos Hoteleros S.A.E.C.A.

EMHOSA owns the building where the Sheraton Asunción Hotel, a five-star hotel with 100 rooms, operates. For more information about EMHOSA, visit www.sheraton-asuncion.com.py

About the IIC

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: Hernando Lesme (in Paraguay)

Telephone: + (595 21) 616-2321

Email: hernandol@iadb.org