IIC Loan of US$1 million Supports Nicaragua's Tourism Services Sector
Loan to Operaciones Familiares S.A., which owns the Budget Rent-a-Car franchise, will partially finance vehicle fleet replacement
Washington, D.C., October 9, 2014 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$1 million to Nicaraguan vehicle rental company Operaciones Familiares S.A. (OFASA) to partially replace its vehicle fleet and meet growing demand for its services.
"With this long-term operation, the IIC supports an SME owned by local investors in Nicaragua in its efforts to grow and compete, thereby boosting provision of vehicle rental services in Nicaragua," said Rodrigo J. Navas Oreamuno, the IIC lead investment officer in charge of the operation.
OFASA, a company owned by the Solórzano family, was established in the 1970s. OFASA has the Budget Rent-a-Car franchise in Nicaragua. OFASA has been growing ever since it began operations, and today it is the market leader nationwide. It currently has a fleet of about 500 vehicles at 10 different locations.
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 (SMEs). 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 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Rodrigo J. Navas Oreamuno
Telephone: +1 (202) 623-3926 in Washington, D.C.