IIC Approves A Loan To Leasing Bolívar S.A. In Colombia
11/29/2005Washington, DC -- On November 30, 2005, the Inter-American Investment Corporation (IIC) approved a COL$20 billion (approximately US$9 million) loan to Leasing Bolívar S.A. The proceeds of the loan will be used to provide financing to small and medium-size companies in Colombia via medium- and long-term finance leases for upgrading and/or purchasing fixed assets. The loan will be denominated in Colombian pesos. This operation seeks to support small and medium-size enterprises as they grow and to enhance their viability.
Leasing Bolívar ranks sixth among Colombia's leasing companies; it has 119 employees located in Bogotá, Medellín, and Cali. The operation that was just approved seeks to provide a source of long-term funding to meet the demand for finance leases, which have become one of the main credit options for small and medium-size companies in Colombia. In the first such operation to be carried out by a multilateral organization in Latin America, local-currency funding will be obtained in order to grant local-currency loans. By issuing local-currency bonds and placing the proceeds in the same market, the IIC will open the door to a new long-term financing mechanism on appropriate terms for supporting small and medium-size companies in the region.
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 member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Steven Reed/Tomás Bermudez
Telephone: (202) 623-3981