IIC And Grupo Cybsa Sign A Loan Agreement To Foster Business Development In Central America
Washington, D.C.- On December 19, 2008, the Inter-American Investment Corporation (IIC), a member of the IDB Group, approved a US$2.5 million loan to Grupo CYBSA, a group encompassing several specialized companies in the product packaging sector that was founded in Central America more than forty-five years ago.
The loan targets Grupo CYBSA companies Corrugadora de Costa Rica, S.A. (Cocorisa), which will receive US$1.5 million, and Cajas y Bolsas S.A. in El Salvador, which will receive US$1.0 million.
The purpose of the project is to improve the companies' cash flow by providing financing for permanent working capital, which will free up revolving credit lines for financing their seasonal and short-term growth. The IIC's participation in the project entails two significant benefits: it provides innovative financing for permanent working capital, and it supports an industry that has a significant value-added component because it indirectly benefits Costa Rica's and El Salvador's export sectors—especially for agricultural exports, which need differentiated packaging to protect perishable products.
"Receiving the approval and financial support of the Inter-American Investment Corporation is a vote of confidence for Grupo CYBSA's regional plans, particularly now that Central America's economic development needs this kind of innovative financial initiatives to face the changing worldwide economic environment," said Jaime Moreno, from Grupo CYBSA.
According to Juan Fonseca, IIC Investment Officer in charge of the operation, "This financing is an innovative instrument that will help companies manage their growth appropriately."
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. 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. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Juan Fonseca (in Costa Rica)
Telephone: + (506) 2523-3348