IIC Loan of US$2.5 Million Boosts Nicaraguan Peanut Exports
Loan will help Nicaragua’s second largest peanut marketing/export firm keep pace with growing demand and benfit an ample local SME value chain
Washington, D.C., March 13, 2013 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$2.5 million for Cukra Industrial S.A., a Nicaraguan peanut marketing firm, the proceeds of which will help the company meet its working capital needs in the upcoming harvest cycles.
The loan supports a significant value chain comprising some 30 small and medium-sized enterprises (SMEs) that sell their peanut crop to Cukra, as well as 20 distributors located in rural areas of León and Chinandega departments, in northwestern Nicaragua.
According to Juan Fonseca, the IIC’s senior investment officer in charge of the operation, “This IIC Loan will help supplement and diversify funding sources for Nicaragua’s peanut sector. Cukra also plans to step up its staffing levels by approximately 20% over the next five years, and a significant number of these jobs is expected to go to women.”
An agribusiness operating for more than 30 years in Nicaragua, Cukra markets and exports its peanuts internationally, including to Mexico, Canada, and Europe. The company also provides technical assistance and agricultural services to its SME suppliers and trains them in best agricultural practices.
Nicaragua is one of the world’s leading exporters of peanuts. It is the third most significant peanut exporter in the Americas after the United States and Argentina, and Latin America’s third leading producer. Cukra is responsible for approximately a quarter of Nicaragua’s peanut exports.
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 for a total amount of 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’s activities, visit www.iic.org.
Contact: Juan Fonseca
Telephone: +506 2588-8717