IIC Loan Of Up To US$10 Million Will Enable Ecuadorian Company To Increase Installed Capacity

11/19/2007

PANASA supplies recyclable corrugated paper to the principal manufacturers of corrugated cardboard boxes for Ecuador’s banana industry

Washington, D.C.- On November 19, 2007, the Inter-American Investment Corporation (IIC) approved a loan for up to US$10 million to Papelera Nacional, S.A. (PANASA), Ecuador's main producer of corrugated paper. The loan will enable the company to increase its installed capacity and its use of recycled paper, as well as invest in effluent management at its plant.

PANASA will use the loan proceeds to acquire and install new equipment, increase its installed capacity, improve process efficiency, and finance its permanent working capital needs.

"With this transaction, the IIC is supporting the increase of domestic paper production for use in export chains and in sectors where Ecuador has international competitive advantages, such as the banana industry. This loan will enable PANASA to increase conversion efficiencies in terms of the demand for basic inputs such as paper, chemicals, and energy," said Javier Hernández-Fuentes, IIC Investment Officer in charge of the operation.

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/Javier Hernández-Fuentes

Telephone: (202) 623-3984

Email: johnbec@iadb.org/javierh@iadb.org