IIC Helps Honduran Furniture Manufacturer Expand Its Business Abroad
Credit of US$600,000 is part of a new IIC subordinated debt product
Tegucigalpa, Honduras, July 2, 2013 — The Inter-American Investment Corporation (IIC) and Manufacturas Del Trópico S.A. de C.V. have signed a loan agreement for up to US$600,000 that will provide this Honduran furniture manufacturer with working capital to expand its business abroad, diversify its products, and boost its competitiveness domestically and internationally.
“The IIC credit is very important for our growth, as it will enable us to implement our business plan, purchase machinery and equipment, open regional sales offices in Panama and Mexico, and enhance the international position of our Deltrópico Designs brand,” noted Luis Fernández, CEO of Del Trópico. “We will increase our efficiency and sales volume, thus ensuring the company's long-term sustainability and profitability.”
“With this IIC financing, Del Trópico will make its internal processes more efficient to boost its competitiveness and intensify promotion of its Deltrópico Designs brand in the target markets,” added Luisa Mayorga, IIC senior investment associate in charge of the operation.
Del Trópico, which began operations in Honduras in 1990, designs, manufactures, and sells furniture, with a particular focus on its Deltrópico Designs brand specializing in garden, terrace, and pool furniture. This brand is geared primarily to hotels, restaurants, clubs, amusement parks, and cruise ships. A full 98% of its sales come from exports to all the Central American countries, Canada, the United States, Mexico, and Caribbean countries.
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 different productive sectors. FINPYME Credit, which is offered in Honduras, among other countries in the region, supports small companies looking to increase their sales by financing working capital as well as investments in fixed assets.
The new subordinated loans do not require collateral, but do require a personal guarantee by the owner. A premium over the base interest rate is applied.
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. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 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 the IIC, visit www.iic.org.
Contact: Luisa Mayorga
Telephone: +505 (2) 264-9140 in Managua, Nicaragua