IIC Loans to Ledincor S.A. and Lidelir S.A. Support Uruguay's Transportation Sector

04/24/2012

Washington, D.C. — On April 24, 2012, the Inter-American Investment Corporation (IIC) approved loans to Ledincor S.A. and Lidelir S.A. for up to US$2.1 million and US$3.1 million, respectively.

According to the IIC’s investment officer in charge of these operations, Santiago Cat, “The loans will be used to purchase machinery and finance working capital needs during the preoperational phase. The loans are expected to boost development of the private sector through the establishment of economic linkages between the forestry and export sectors, which will in turn generate jobs and foreign exchange earnings as well as add value to Uruguay’s renewable forestry assets.”

About Ledincor S.A. and Lidelir S.A.

Ledincor S.A. and Lidelir S.A. are two companies that will provide logistical services at the log storage yards of the Montes del Plata project’s M’Bopicuá logistics terminal in Río Negro Department and at its Punta Pereira terminal in Colonia Department. The companies will provide services under 7-year service agreements for managing and operating log storage yards beginning in January 2013.

The Montes del Plata project involves the construction of a cellulose pulp mill to process eucalyptus harvested from commercial tree farms. The project includes the construction and operation of a pulp mill that will produce some 1.3 million metric tons of cellulose per year; a 160-megawatt biomass power generation facility; a river port terminal; barge terminals with log storage yards; and a wood chipping plant. The pulp mill will employ elemental chlorine free technology and will be built in the Zona Franca Punta Pereira S.A., some 190 km west of Montevideo. The Montes del Plata project represents the largest foreign investment in Uruguay’s history.

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 2011, the IIC reached US$1.48 billion in assets and approved 71 operations channeling US$464.7 million to SMEs in the region. For more information on the IIC’s activities, visit www.iic.org.

Contact: Santiago Cat

Telephone: + (5982) 915-3696 in Uruguay

Email: santiagoc@iadb.org