IIC Financing To Support The Textile, Apparel, And Leather Industry In Honduras

09/30/2003

WASHINGTON, D.C. - On October 1, 2003, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a US$4.5 million loan to Caracol Knits, S.A. de C.V. a textile, apparel, and leather manufacturer for the implementation of a group of investments to increase production capacity by more than 100% of current capacity. The financing provided by the IIC will support the growth of the textile manufacturing sector in Honduras. Caracol Knits is recognized as a model company in the Honduran textile industry. The project financed by the IIC will allow the company not only to double operations, but also to add more value to the traditional maquila operations.

With this project the IIC will be supporting the textile-manufacturing sector in Honduras, generating more than 500 direct jobs, as well as substantial foreign exchange earnings for the economy. In addition the project will permit technology transfer and acquisition of know-how to the local workforce. The participation of the IIC will make it possible the expansion of the water treatment plant to handle the increased plant capacity in compliance with the IIC environmental guidelines.

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, securities 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. For more information on the IIC's activities, visit its Web site at www.iic.int.

Contact: Steven Reed/Javier Hernandez

Telephone: (202) 623-3981

Email: stevenr@iadb.org