IIC Grants A Local-Currency Guaranty To Support A 50 Billion Colombian Pesos Bond Issue By A Colombian Agribusiness Company
07/23/2007The IIC's guaranty for Productos Naturales de la Sabana, S.A. will be equivalent to 31% of the bond issue amount
Washington, D.C. - On July 24, 2007, the Inter-American Investment Corporation (IIC) approved a guaranty for 15,500,000,000 Colombian pesos (equivalent to approximately US$7.3 million) for the Colombian company Productos Naturales de la Sabana S.A. (Alquería) that will enable the company to enter the local capital market and tap alternative sources of financing, especially long-term financing.
Alquería will make a bond issue on the local market in the amount of 50,000,000,000 Colombian pesos (equivalent to approximately US$23.6 million). The company will use 85% of the proceeds to replace borrowings and the remaining 15% to finance its investment plan.
Alquería is a family business that produces and markets milk and other beverages. It is Colombia's leading producer of extended shelf-life milk. Alquería has a network of 900 small and medium-size suppliers of raw milk, comprising one of the largest supply chains in Colombia.
Alquería is a significant source of jobs in Colombia, especially in the Cundinamarca area, where it employs approximately 1,250 people directly and 500 indirectly. The raw milk comes from different cattle-raising areas of Colombia. This financing from the IIC is expected to spur local production.
According to John Beckham, IIC Corporate Projects Coordinator, "Financing from the IIC will help boost Alquería’s competitiveness and support its plan to grow in the region, increase production efficiency at companies acquired recently, and take advantage of economies of scale."
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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 member countries by encouraging 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, please visit www.iic.int.
Contact: John Beckham/Olga Lucía De Narváez
Telephone: (202) 623-3984/+ (571) 325-7058