IIC Approves A Partialcredit Guarantee For Banco Improsa S.A. In Costa Rica
10/04/2005Washington, D.C. – On October 5, 2005, the Inter-American Investment Corporation (IIC) approved a partial credit guarantee for a standard bond issue to be placed by Banco Improsa in Costa Rica and Panama. This is the IIC's second operation with Banco Improsa S.A. The operation is in line with the Declaration of Nuevo León goal of tripling the resources channeled by the IDB Group to micro, small, and medium-size companies in Latin America and the Caribbean by 2007.
Seeking to diversify its funding sources, Banco Improsa S.A. will register a US$10 million standard bond issue with Bolsa Nacional de Valores de Costa Rica and Bolsa de Valores de Panamá. Banco Improsa is an SME niche bank whose products include warehouse receipts, factoring, letters of credit, collection services, trusts, and leasing.
Access to appropriate sources of financing, which is limited in Costa Rica, is essential for the growth of small and medium-size enterprises. This operation will enable a small bank to increase the resources it makes available to such companies. The IIC's partial credit guarantee supports the placement of instruments in the region and the development of securities markets in Costa Rica and Panama. It also broadens the range of investment possibilities available to Panamanian investors, who are expected to be the main buyers of the issue.
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 borrowing 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, visit its Web site at www.iic.int.
Contact: Carlos Roa/Ana Cecilia Savastano
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