IIC approves US$6 million loan to support Mexico’s agriculture sector
This agriculture operation will provide employment to more than 3,000 people during harvesting season
Washington, D.C., June 25, 2015 — The Inter-American Investment Corporation (IIC) and International Greenhouse Produce S.A. de C.V. (IGP) signed a loan agreement of up to US$6 million to strengthen IGP’s financial position and maintain its greenhouses.
This is the IIC’s second operation with IGP; the first operation helped the company undertake an expansion project.
The IIC provided technical assistance (TA) to IGP that was partially funded by the Korean Trust Fund. This TA will help IGP as it reduces and eventually eliminates its use of methyl bromide. This chemical has widespread agricultural uses, but is also linked to the depletion of the ozone layer, among other detrimental effects. Helping IGP find ways to phase out its use of this chemical in a way that is not overly costly and maintains production levels would help not only this company, but would set an example for the entire Mexican produce industry. This is also positive for the global environment in general.
“With this loan, the IIC is supporting the growth of an agricultural company in a high value sector and boosting export chains. It is also supporting a supply chain of more than 2,000 providers, many of which are Mexican SMEs,” said Carlos Martínez, IIC investment officer in charge of the operation.
IGP is a Mexican company that grows greenhouse produce for export, mainly to the United States. It grows tomatoes, European seedless cucumbers, and chilies and peppers.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises. The IIC provides companies with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2014, the IIC approved 64 operations totaling US$426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional US$3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Carlos Martínez
Telephone: +52 (55) 5141-2492 in Mexico City, Mexico