IIC Loan To Financial Intermediary In Peru Will Increase The Flow Of Financial Resources To Small And Medium-Size Companies
07/22/2007US$85 million A/B loan to Scotiabank Perú S.A.A. will be onlent to approximately 850 end beneficiaries to provide medium-term financing to Peruvian SMEs for expansion projects, to purchase machinery and equipment, and for working capital
Washington, D.C.- On July 20, 2007, the Inter-American Investment Corporation (IIC) approved a US$85 million loan to Scotiabank Perú S.A.A., consisting of a US$40 million A Loan and a US$45 million B Loan. The proceeds will be used to provide medium-term financing to small and medium-size companies in Peru for expansion projects, machinery and equipment purchases, and working capital.
Scotiabank Perú S.A.A. is a multipurpose bank that is seeking to consolidate itself as a specialist in retail, wholesale, and SME banking. The long-term loan from the IIC will enable Scotiabank to improve the term matching of its lending and borrowing operations and thus offer longer-term financing to SMEs. Such companies have limited access to the medium-term and, particularly, long-term financing that they need to acquire capital goods, grow, and compete in a globalized economy. With the proceeds of the IIC loan to Scotiabank, a large number of small and medium-size Peruvian companies in the export, trade, transportation, communications, and service sectors, among others, will receive loans ranging between US$20,000 and US$180,000.
As with all of the financial institutions that receive funding from the IIC, representatives of Scotiabank will be required to attend the IIC’s environmental management workshop for financial institutions. According to IIC’s Carlos Roa, Coordinator, Financial Institutions and Structured Finance, "This transfer of know-how and best practices will enable Scotiabank to improve its environmental policies and monitor the practices of the companies that it provides with financing.
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: Carlos Roa/Rita Bettiol
Telephone: (202) 623-3955