IIC Approves Long-Term Loan Of Up To US$4.5 Million To Ecuador’S Agrícola Ganadera Reysahiwal Agr S.A. For Refinancing Short-Term Debt
11/27/2006This operation comes under the IIC’s supply chain support program
Washington, D.C. - On November 28, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$4.5 million to Agrícola Ganadera Reysahiwal AGR S.A. for refinancing short-term debt incurred by the company to build a second dairy product plant in Sangolquí, Ecuador.
AGR S.A. is a dairy company that relies on two main networks of microentrepreneurs to conduct its business. The first network consists of 1,250 milk producers that supply around 75% of the milk used by Reysahiwal. The second network consists of 140 small distributors with trucks that reach 10,000 points of sale throughout most of the country.
In addition to purchasing small producers’ output, Reysahiwal provides them with financing for buying fertilizer, seed, cattle, and other inputs necessary to improve their operations. The producers represent a total of 3,750 direct and indirect jobs in rural areas of Ecuador. The new Sangolquí plant has state-of-the-art Tetra Pak technology and produces 200,000 liters of milk per day. With this plant, Reysahiwal is helping to establish new standards for food quality and safety in Ecuador.
The operation comes under the IIC’s supply chain financial support program approved in April 2003. The program seeks to increase the flow of funding to SMEs in Latin America and the Caribbean and identify potential clients for financing, particularly those that are part of a supply chain.
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 stimulating 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: David Levy (in Washington D.C.)
Telephone: (202) 623-3969