IIC Loan of up to US$2.2 Million to Lirio Blanco S.A. Supports The Transportation And Warehousing Sector in Uruguay

11/21/2011

Washington, D.C. - On November 18, 2011, the Inter-American Investment Corporation (IIC) approved a loan to Lirio Blanco S.A. in Uruguay, in the amount of up to US$2.2 million.

Santiago Cat, the IIC investment officer in charge of the operation, explained: "These funds will be used to finance the procurement of two tugboats for seagoing vessels. The operation is expected to have a positive impact on private sector development through its development of economic linkages with the export sector and its suppliers, thus generating jobs and foreign exchange revenues in the country."

About Lirio Blanco

Lirio Blanco will provide towage support services for seagoing vessels entering the port of Punta Pereira, in Colonia Department, for the Montes del Plata company under an exclusive five-year contract beginning January 2013, renewable for two additional years, as well as towage support services for ships and barges entering the port of Nueva Palmira, in Soriano Department.

The Montes del Plata project involves the construction of a cellulose pulp mill for processing eucalyptus from existing commercial tree farms in Uruguay. It encompasses the construction and operation of a cellulose mill producing on the order of 1.3 million metric tons of cellulose per year; a 160-megawatt biomass power generation facility; a river port terminal; barge terminals with wood storage yards; and a wood chipping plant. The cellulose mill will use elemental chlorine free (ECF) technology. The industrial facilities will be constructed in a free trade zone in Punta Pereira, some 190 kilometers west of Montevideo. Montes del Plata is the largest foreign investment in the history of Uruguay, for an aggregate US$2.3 billion approximately.

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved 49 operations, channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, visit www.iic.org

Contact: Santiago Cat

Telephone: + (598 2) 915-3696

Email: santiagoc@iadb.org