IIC Plants Seeds of Development for Paraguay’s Agricultural Sector
Vicoza S.R.L. receives US$570,000 loan under FINPYME Credit to launch new product line and upgrade its plant
Asunción, Paraguay, April 18, 2013 — The Inter-American Investment Corporation (IIC) and Vicoza S.R.L. have signed a loan agreement for up to US$570,000 that will enable the Paraguayan company to begin production of chia seed, upgrade its granular dolomite lime plant, and restructure its short-term debt.
The approved loan is an operation of FINPYME Credit, the IIC’s flagship program for financing small and medium-sized enterprises (SMEs).
“The IIC funds are very important to us, since they come with better interest rates. This will lower our production costs and enable us to finance the supplies we need to produce chia seed,” commented Pedro Arturo López Lizza, Vicoza’s managing partner. “At the same time, the tenor of the loan will give us flexibility, putting us in a more comfortable position and enabling us to plan for the long term.”
“With this project, the IIC is supporting the growth of Paraguay’s inputs and services sector for agricultural and livestock production and providing Vicoza with the tools to boost its production and meet the needs of its clientele,” noted Cristina Paredes, IIC investment associate in charge of the operation.
Vicoza has been operating in the Paraguayan market for over two decades. It sells seed for fodder and provides inputs and services to the agricultural and livestock sector. In addition, the company grows its own seed and exports fodder- and pasture-grass seed to Latin America, Europe, and Asia. Vicoza also manufactures and sells an exclusive line of granular dolomite lime for agricultural use.
FINPYME Credit is a small-loans program that provides competitive financing to SMEs in Latin America and the Caribbean. The loans range from US$100,000 to US$600,000 and are available to businesses from different productive sectors. FINPYME Credit is offered in Paraguay and other countries in the region and supports small companies looking to boost their sales by financing investments in working capital and fixed assets.
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 totaling 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: Cristina Paredes
Telephone: +595 (21) 616-2320 in Asunción, Paraguay