IIC Renews Its Commitment With Banco Regional S.A.E.C.A. in Paraguay, Approving A Loan of up to US$8 Million
Washington DC - On November 21, 2011, the Inter-American Investment Corporation (IIC) approved a loan to Banco Regional S.A.E.C.A. for a total of up to US$8 million. The proceeds of the loan will be used to provide financing for SMEs in Paraguay, in a variety of productive sectors.
This is the IIC’s fifth operation with Banco Regional since November 2003. The loans to Banco Regional have had a significant impact in terms of the number of beneficiary SMEs. It is expected that this fifth operation will benefit approximately 80 SMEs.
According to José Quiñones, the IIC investment officer in charge of this operation, "This operation will continue supporting SMEs in Paraguay and will help Banco Regional to diversify its sources of funding. The proceeds of the loan will also allow the bank to offer longer-term loans to its SME customers to meet their financing needs, including working capital financing and the purchase of fixed assets, and support their growth strategy and competitiveness".
About Banco Regional
Banco Regional has operated in Paraguay since 1991, when a group of Paraguayan entrepreneurs from the most important productive area of the country decided to establish a bank in order to address the needs of the farming sector and other rural areas in Paraguay. Owing to this approach and the bank’s significant growth over the years, a 40% share was acquired in early 2008 by the Rabobank Group of the Netherlands, through Rabo Financial Institutions Development B.V., one of the world’s leading financial groups specializing in the agribusiness and agrifood sectors, with presence in over 57 countries.
Subsequently, in April 2009, Banco Regional acquired ABN Amro Paraguay, and the two merged their operations in November 2009. The merger made Banco Regional the largest financial institution in Paraguay, with 38 branches throughout the country. The bank’s strategy is to grow by consolidating its leadership in the farming and SME segments, and to expand its customer base in the retail banking segment. For more information about Banco Regional, visit www.bancoregional.com.py
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: José Quiñones
Telephone: + (511) 215-1839