IIC Provides Up To US$35 Million In Financing To The Textile Company Cone Denim De Nicaragua, S.A.
07/09/2007An A Loan of up to US$15 million to be funded by the IIC and a B Loan totaling US$20 million to be funded by participating financial institutions
Washington, D.C.- On July 10, 2007, the Inter-American Investment Corporation (IIC) approved a loan of up to US$35 million to Cone Denim de Nicaragua, S.A. (CDN) for building and operating a 600,000 square foot plant that will be the first denim manufacturing plant in Central America and perhaps one of the largest facilities in Nicaragua. The estimated cost of the project is US$105 million.
CDN is a greenfield operation that is part of Cone Denim, one of the business units of International Textile Group, Inc. (ITG). Cone Denim is recognized globally as a leader in the production of denim fabrics. ITG currently employs over 10,500 people worldwide. Its business strategy is to become a global provider of textiles and related supply chain solutions. In Nicaragua the project will create over 750 direct jobs in addition to numerous indirect jobs generated from spin-off operations in garment-making.
According to Johnny Jirón, the IIC investment officer in charge of the operation, "This project will boost the textile sector in Nicaragua by creating higher-skilled jobs and attracting more foreign investment. Over the past ten years Nicaragua has focused on manufacturing export goods in free trade zones as an economic activity. Under the CAFTA agreement, this operation will give textile products manufactured in Nicaragua preferential access to the U.S. market."
The production plant will have an annual production capacity of 28 million yards of denim and will be equipped with state-of-the-art technology and a world-class production system.
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/Johnny Jirón (in Nicaragua)
Telephone: (202) 623-3984