IIC Approves Loan To Compañía Cervecera De Nicaragua
03/08/2009The loan will provide the company with the financing it needs to expand its operations and social impact
Washington, D.C. On March 10, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$7 million to Compañía Cervecera de Nicaragua (CCN), a Central American-owned company that produces and distributes beer. It also produces water and other nonalcoholic beverages. CCN has been making high-quality beer for more than seventy years, and it is one of the most technologically advanced beverage companies in Latin America. The company’s production process is environmentally friendly and fully automated.
CCN uses biogas from its wastewater treatment plant to generate steam for industrial use and is finalizing studies for building a 26-megawatt hydroelectric plant that will feed into Nicaragua’s power grid. The Korea-IIC Trust Fund for the Development of SMEs is funding a feasibility study for expanding CCN’s wastewater treatment plant. The study will provide CCN with recommendations on how to increase plant capacity, and it will assess ways in which the company could use energy more efficiently.
CCN is actively involved in the local community. It invested in and supports a hospital; it also operates a technical school that provides 280 young people with two-year scholarships.
The shortage of bank financing in local and international markets has affected the operating programs of key companies in the region. The IIC is providing such companies with support for completing their operating programs, which are a major source of local employment and have significant social impact. The IIC loan will enable CCN to complete its investment and operating plans for 2008-2009 and maintain its social outreach programs.
According to Franco Chamorro, the company’s finance manager, "As a leading Nicaraguan company, we know it is important to be a good corporate citizen. The IIC loan will enable us to consolidate the growth of our operations without sacrificing our investments and activities that benefit the community."
"The IIC believes that CCN’s economic contribution to Nicaragua—whether by generating jobs or increasing sales and tax revenue—is effectively complemented by the social impact that the company achieves through its school and the Hospital Metropolitano" added Jorge Ciurlizza, IIC senior investment officer in charge of the operation.
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 sixty-four transactions channeling US$300.5 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: Jorge Ciurlizza (in Washington, D.C.)
Telephone: (202) 623-3932