IIC approves loan to Grupo DINANT Companies in Honduras
06/15/2009Washington, D.C. - On June 16, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$7,000,000 to two Grupo Dinant companies: Corporación Dinant, S.A. de C.V. and Exportadora del Atlántico, S.A. de C.V.
Grupo Dinant’s operations are vertically integrated and span production through product marketing, mainly of snacks, agricultural products, and food products. Grupo Dinant is also starting to produce biodiesel from palm and jatropha oil. It is working with inhabitants of rural areas in Honduras for planting jatropha and harvesting the seeds.
The IIC loan will be used to provide financing to two Grupo Dinant operating companies in order to restructure their existing debt, freeing up cash flow that will enable the group to continue with its expansion plan, increase the production capacity of its divisions, improve its distribution network, and expand its palm plantations.
The IIC’s participation will also enable Grupo Dinant to build a biogas facility that will use methane from the palm oil processing plant wastewater treatment system as a renewable energy source, lowering air emissions and improving wastewater quality.
Grupo Dinant is a market leader in a highly competitive industry; it has a network of 1,000 small producers that supply it with palm fruit. These producers receive technical assistance from Grupo Dinant to ensure production quality and are also expected to benefit from the companies’ increased production and sales.
According to Elizabeth Azcona, IIC investment officer in charge of the operation, "It is important for leading companies such as Grupo Dinant to continue to grow and invest in the region. The IIC expects this operation to have a demonstration effect and increase investment in Honduras. The IIC thus continues to contribute to Latin America’s development, especially in the context of this worldwide liquidity crisis and tight credit environment."
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: Elizabeth Azcona
Telephone: + (504) 290-3529