IIC Approves The Third Transaction Under Its Small Business Revolving Line (SBRL) In Paraguay

12/04/2007

US$170,000 loan will enable Hardy S.A.E.C.A. to purchase its own plant

Asunción, Paraguay – On December 5, 2007, the Inter-American Investment Corporation (IIC) approved a US$170,000 loan to Hardy S.A.E.C.A. under the SBRL. The company will use the greater part of the proceeds to purchase the building that houses its factory and administrative offices, which it currently leases. A smaller portion of the proceeds will be used for working capital, making certain products more profitable.

Hardy S.A.E.C.A. manufactures home cleaning products such as detergents, deodorizers, and essential oils, as well as biodigesters for refrigerators and small-capacity equipment for producing biodiesel. In 2000 the company started experimental production of biodiesel from vegetable oils, thus becoming a pioneer in this field in Paraguay. It currently has eighteen employees.

The SBRL is a new financial product that enables the IIC to offer standardized small loans to eligible small enterprises under an expedited approval process. It is currently being offered in Costa Rica, Honduras, Nicaragua, Paraguay, and Uruguay. The SBRL targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as any other sector that contributes to the local economy.

The signing ceremony took place in Asunción, where the IIC has a local presence. Ms Marta Aurelia Costa de Buttner, President, and Ms María Celeste Limprich Cortti, Managing Director, signed on behalf of Hardy S.A.E.C.A. Mr. Hernando Lesme, Investment Officer in charge of the operation, signed for the IIC.

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 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: Hernando Lesme (in Paraguay)

Telephone: + (595 21) 616-2321

Email: hernandol@iadb.org