IIC Approves A US$2 Million Loan Supporting Paraguay'S Agribusiness Sector
Washington, DC - On June 1, 2005, the Inter-American Investment Corporation (IIC) approved a US$2 million loan to Agrofértil, S.A., one of Paraguay's largest grain exporters. Financing from the IIC will improve the company's debt profile and make it possible to extend the support it provides to hundreds of growers who are working their own land. The loan is in line with the IIC's initiative for financing supply chains and will make it easier for small growers to obtain financing and appropriate prices for their crops, as well as technical assistance.
With this operation, the Corporation will support the consolidation of investments made in the agricultural sector to increase grain production and improve the group's fleet of agricultural machinery. It will also help the company consolidate investments in the construction of warehouses for storing agrochemicals and seeds at the company's main facility and step up investments in environmental protection and security at the storage facilities. The IIC has worked closely with the company to promote the updating of its management practices and thus improve corporate governance. Agrofértil has 150 employees and generates a significant number of indirect jobs related to its agricultural and industrial activities.
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.
Contact: Steven Reed/Santiago Cat
Telephone: (202) 623-3981