IIC Approved A $4 Million Equity Investment In Negocios Regionales Fondo De Inversion Privado To Strengthen And Modernize Medium-Size Enterprises In Brazil, Argentina, Mexico And Other Countries In The Region

12/25/2000

WASHINGTON, D.C. - On December 22, 2000, the Board of Directors of the Inter-American Investment Corporation (IIC)1 approved an equity investment of up to US$4 million in Negocios Regionales Fondo de Inversión Privado, a private investment fund aimed at investing in small and medium-size firms in Chile. The fund has a term of 10 years, and its expected capitalization is US$23.5 million.

IIC's participation in the fund will help to modernize and strengthen small and medium-size firms located in areas other than the metropolitan area of Santiago, thus supporting private equity investment efforts in Chile. The fund expects to invest in at least ten small and medium-size firms helping to create a source of venture capital for SMEs and also give a strong boost to the process of decentralizing production in the country.

The fund is expected to create between 120 and 180 jobs throughout Chile, generate between US$5 million and US$10 million in export revenues, and contribute approximately between US$15 million and US$35 million to Chile's gross domestic product.

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1 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. The IIC has thirty-seven member countries: twenty-six in Latin America and the Caribbean and eight in Europe, plus the United States, Japan, and Israel. For further information on IIC's activities please contact Mr. Jorge Roldán at 202-623-3948.

Contact: Roldan Trujillo

Telephone: (202) 623-3922

Email: sylviasz@iadb.org