IIC Approves A US$3 Million Loan For A Poultry Operation In The Province Of Córdoba, Argentina

09/10/2007

The operation will generate some 300 direct new jobs by the end of 2007

Washington, D.C. – On September 11, 2007, the Inter-American Investment Corporation (IIC) approved a US$3 million loan to Avex, S.A., an Argentine poultry operation located in the city of Río Cuarto in the province of Córdoba that produces and markets chicken meat and chicken products and exports most of its production. The IIC loan will finance Avex's working capital needs during the start-up of production and marketing activities. The project consists of the construction and start-up of the poultry operation, which includes, initially, four production modules that will be vertically integrated in the production cycle.

"Argentina is probably the country with the lowest poultry production costs in the world thanks to the low cost of grain. This provides the sector with significant export potential, as shown by the considerable increase in volume of poultry exports during 2001-2006 and the first half of 2007. Avex, S.A. will thus benefit from strong international demand," stated Javier Barsantini, IIC Investment Officer in charge of the operation.

Because all of the production inputs are locally sourced, the operation will generate US$39 for every US$1 provided by the IIC. The loan will also lead to vertical integration with Argentina’s major grain producers, which will increase efficiencies and improve cost control.

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: John Beckham/Javier Barsantini (in Chile)

Telephone: (202) 623-3984

Email: johnbec@iadb.org/javierb@iadb.org