IIC Approves An Equity Investment With DFLSA, Inc. To Create And Maintain Small And Medium-Size Enterprises In Guyana And Suriname
11/21/2004Washington, D.C. - On November 22, 2004, the Inter-American Investment Corporation (IIC) approved a US$200,000 equity investment in common shares to provide financing and enterprise development services to create and maintain small and medium-size enterprises in Guyana and Suriname. DFLSA will be the fourth subsidiary of DFL Caribbean (DFL), a private limited liability company incorporated in Trinidad and Tobago. The Multilateral Investment Fund (MIF) is also participating in this transaction with a US$2.5 million loan. It is likely that the European Investment Bank (EIB) will also participate with preferred shares and a subordinated loan denominated in euros.
This transaction is in line with the IIC’s economic development goals for the region because DFLSA will support microenterprises, and small and medium-size companies with strong growth potential that lack access to suitable sources of financing. With this investment, the Corporation will help mobilize funds from other investors. The preferred divestment vehicle will be through the eventual listing of DFLSA on the local Guyana stock exchange. Through this project the IIC will channel financing to at least sixty small and medium-size companies and 2,500 microenterprises. The main beneficiaries of this investment will be in the manufacturing, agro-processing, and tourism sectors.
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.
Contact: Steven Reed/John Beckham
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