IIC Approves Loan To An Agribusiness In El Salvador Under The Cofinancing Agreement With Latin American Agribusiness Development Corporation (Laad)
11/13/2007Washington, D.C. - The Inter-American Investment Corporation (IIC) approved a US$1,225,000 medium-term loan to Tefex, S.A., a Salvadoran company that exports ferns to the U.S. and European markets.
The proceeds will enable this start-up company to invest in fern plantations to capitalize on worldwide growth in demand. The operation falls under the IIC’s cofinancing agreement with Latin American Agribusiness Development Corporation (LAAD). LAAD is a private investment and development company that promotes socioeconomic development in Latin America by financing small and medium-size agribusinesses.
Tefex, S.A. is the result of a partnership between Guatemalan and Salvadoran investors to capitalize on the know-how and experience gained in their operations in Guatemala. These investors are seeking to expand into El Salvador. In approving this loan, the IIC is seeking to foster a niche market in which Central America has competitive advantages, because it creates jobs in the agriculture sector. The operation is expected to have a demonstration effect in the region.
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. 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: John Beckham/Gustavo Romero
Telephone: (202) 623-3984