IIC And The People’S Republic Of China Create An SME Equity Investment Fund
Washington, D.C. - The ceremony for the admission of the People’s Republic of China as a member of the institutions of the Inter-American Development Bank Group (IDB Group) took place on January 12, 2009. The People’s Republic of China subscribed 110 shares of the capital stock of the Inter-American Investment Corporation (IIC), which represent 0.16% of the IIC’s share capital. It will also contribute US$75 million to establish the "China-IIC SME Equity Investment Fund", to be administered by the IIC for investing in equity, quasi-equity, and hybrid instruments issued by SMEs in the IIC’s twenty-six regional member countries. Following the ceremony, China formally became the forty-fourth member country of the IIC.
China’s support through the fund will further the IIC’s mandate to foster the development of SMEs and will complement the IIC’s other financing activities, including its own direct equity investments. The fund’s profits will be returned to the fund for reinvestment.
The combination of IIC resources and China’s contribution is expected to have a demonstration effect and open doors to attract additional equity investment resources for the IIC and its target region, Latin America and the Caribbean.
Present at the signing ceremony as China became a member of the IDB Group were IIC Board of Executive Directors Chairman Luis Alberto Moreno; China’s ambassador to the United States Zhou Wenzhong; Mme. Jin Qi, the head of International Affairs at the People’s Bank of China; and IIC General Manager Jacques Rogozinski. The Secretary General of the Organization of American States, José Miguel Insulza, was also present.
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 2008, the IIC reached US$1.5 billion in assets and approved 64 transactions channeling US$300.55 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.
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