IIC Approves MX$100 Million Credit Line to Mexico’s Construction Sector
Local-currency credit line to Arendal will support an extensive chain of SME subcontractors
Washington, D.C., September 11, 2012 — The Inter-American Investment Corporation (IIC) approved a credit line of up to MX$100 million (US$7.2 million) to Mexican construction company Arendal S. de R.L. de C.V., which will be used to finance a variety of construction projects.
The credit line, denominated in local currency, will help the company finance some of its working capital needs as well as implement public works and service contracts with companies such as Petróleos Mexicanos (PEMEX).
According to Rodrigo Navas, the IIC’s senior investment officer in charge of the project, “The IIC is working to meet its clients’ needs for financing in local currency. This operation will enable Arendal to improve its long-term financial planning for project bidding—given that the term of the credit line is five years—and will help the company diversify its sources of financing.”
With more than 15 years operating in the market, Arendal specializes in, inter alia, the construction of pipelines, plants, electromechanical and heavy civil engineering works, and installation of fiber optic networks. The company’s activities have a high impact on value chains in Mexico. On average, for each bid the company wins, it will subcontract work to 50 small and medium-sized enterprises (SMEs). Currently, Arendal directly employs more than 1,200 persons, and may add as many as another 200 jobs over the next five years.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on SMEs. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2011, the IIC reached the symbolic one-billion-dollar mark in disbursements of own and third-party funds. Throughout our history, we have benefited more than 1.6 million SMEs in Latin America and the Caribbean. For more information on the IIC’s activities, visit www.iic.org.
Contact: Rodrigo Navas
Telephone: +1 (202) 623-3926 in Washington, D.C.