IIC Approves US$35 Million Long-Term Loan, Key For Developing Argentine Food Sector Supply Chain
09/18/2006Washington, D.C.-On September 19, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$35 million, comprising an A loan of up to US$8 million and one or more B loans up to a total of US$27 million, to Molino Cañuelas S.A.C.I.F.I.A. and Molino Florencia S.A. (Molino Cañuelas).
Molino Cañuelas is an Argentine company with over seventy years of experience in wheat milling for the production of flours and food products. The company has industrial activities in five provinces and a commercial presence throughout the country. Molino Cañuelas has a strong impact on the communities in which it is present: it provides over 1,000 jobs; its supply chain includes over 5,500 providers, many of which are agricultural producers; and it has over 11,000 clients, of which 6,000 are small and medium-size enterprises such as bakeries and small stores.
The long-term financing from the IIC will strengthen and promote the development of Molino Cañuelas, Argentina's principal flour exporter, and ensure the industrial and commercial operation of its supply chain, which includes a significant number of small and medium-size Argentine enterprises. Given the current economic conditions in Argentina, channeling long-term resources to the private sector is fundamental for ensuring a sustainable economic recovery.
The operation takes place within the framework of the IIC's supply chain financial support program, approved in April 2003, which seeks to increase the flow of financing to small and medium-size enterprises in Latin America and the Caribbean by identifying potential IIC financing clients, in particular those that are part of supply chains.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank Group (IDB). 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 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: John Beckham/ Fernando Luciani (in Uruguay)
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