IIC Approves Loan To Corandes S.A.
11/30/2009Washington, D.C. - On December 1, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$8 million to Corandes S.A.
Corandes is Argentina's leading producer and marketer of tinplate containers for fruit and vegetables, meat and meat products, seafood, and aerosols, as well as metal caps. The aerosol operation is particularly important because multinational corporations such as SC Johnson and Clorox have established operating bases in Argentina for supplying the rest of the region. Corandes is part of INESA, the leading Chilean producer of tinplate containers. INESA started operations in Argentina in 1995. Corandes makes investments that provide value-added to the steel sector, an industry in which Argentina has comparative advantages.
The purpose of the loan is to finance Corandes's permanent working capital needs. With this project, the IIC will help improve the company's financial profile by providing it with long-term financing that is not readily available in the local financial market.
Marcelo Bermúdez, INESA's Finance and Administration Manager, stated that "This loan to Grupo INESA's subsidiary Corandes S.A. is competitive in terms and cost, thus making it a good option for financing the company's working capital needs for its expansion project in Argentina. In addition, having the IIC among its main banks enhances Corandes's position vis-à-vis the financial markets and the company's suppliers, clients, and other players."
The IIC 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 operations 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: Ana María Orellana (in Chile)
Telephone: + (562) 431-3707