IIC Finances New Product Line of Essential Orange Oils in Paraguay
Wilhelm S.A.C.I.A.G. receives US$250,000 under FINPYME Credit to expand its Yegros plant
Asunción, Paraguay, December 4, 2013 — The Inter-American Investment Corporation (IIC) and Wilhelm S.A.C.I.A.G. (Wilhelm) have signed a loan agreement for up to US$250,000 to finance a new production line of essential oils extracted from whole oranges at its Yegros plant in southern Paraguay. The proceeds of the loan will also be used to meet the company’s working capital needs.
The loan was approved under FINPYME Credit, the IIC’s flagship program for financing small and medium-sized enterprises (SMEs).
“This new IIC loan will enable us to extract bitter orange essence through cold pressing of the whole fruit. Paraguay has vast, untapped expanses of bitter orange groves, and our objective is to make full use of them,” declared Wilhelm President Carlos Costas.
“A large volume of bitter oranges is needed to ensure optimal yield of this product, and the five-year loan from the IIC will enable us to gradually increase the volume processed and, thus, our annual output. We believe that this use of bitter oranges will benefit thousands of small growers in the department of Caazapá,” added Wilhelm Vice President Marcelo Velilla.
“With this loan, the IIC is supporting the growth of a sector that is key to our country’s economy. The impact of the operation will be felt in the generation of employment and foreign exchange,” noted Cristina Paredes, IIC investment associate in charge of the operation. “The Corporation is also providing support to small and medium sized enterprises such as Wilhelm to boost their efficiency and profitability.”
In business for 23 years, Wilhelm markets and exports essential oils, industrial fragrances, additives, and perfumes. With the yield from its own bitter orange groves and the harvest from a network of more than 1,300 growers from different production zones, it produces 40% of the country’s exports of petitgrain essence. Paraguay is the world’s only producer of this essence.
This project is the IIC’s third operation with Wilhelm. With the previous loans, granted in 2006 and 2009, the company invested in plant maintenance and opened new markets for its traditional products.
FINPYME Credit is a small-loans program that provides competitive financing to SMEs in Latin America and the Caribbean. The loans range from US$100,000 to US$600,000 and are available to businesses from a variety of productive sectors. FINPYME Credit is offered in Paraguay and other countries in the region and supports small companies looking to boost their sales by financing investments in working capital and fixed assets.
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. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2012, the IIC approved more than 70 operations totaling some US$400 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Cristina Paredes
Telephone: +595 (21) 616-2320 in Asunción, Paraguay