IIC Approves A US$8 Million Loan To Pesquera Diamante In Peru

05/15/2006

Washington, D.C. - On May 16, 2006, the Inter-American Investment Corporation (IIC) approved a US$8 million loan to Pesquera Diamante, S.A. in Peru. The transaction seeks to support the consolidation of a successful family-owned company. The IIC loan will help enhance productivity and the use of resources in the industry.

The loan proceeds will be used to refinance the short-term debt incurred by Pesquera Diamante S.A. to acquire five vessels, finance the building of an additional vessel, and pay off small balances on operating leases. This will provide the company with better cash flow and financial flexibility and enable it to achieve balanced growth in a competitive market. Each vessel provides between fifteen and twenty direct jobs and between three to five indirect jobs for every direct job created. In addition, Diamante builds and upgrades its own fishing vessels, which is a source of additional jobs.

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: John Beckham/Jorge Ciurlizza

Telephone: (202) 623-3984

Email: johnbec@iadb.org