IIC Signs Agreement With Banco Improsa S.A.
11/06/2005Washington, D.C. - On November 7, 2005, the Inter-American Investment Corporation (IIC) and Banco Improsa S.A. signed an agreement under which the IIC will provide its first partial credit guarantee in Central America, for a standard bond issue of up to US$10 million.
Seeking to diversify its funding sources, Banco Improsa will register a US$10 million standard bond issue with Bolsa Nacional de Valores de Costa Rica and Bolsa de Valores de Panamá. The IIC's proportional, nonrevolving partial guarantee will be provided as the bonds are offered to and purchased by shareholders.
The operation seeks to enhance the issue rating, enabling Banco Improsa S.A. to offer the issue on terms that will make it more attractive for institutional investors, chiefly investment and pension funds. This guarantee supports Banco Improsa's bond issue, which will be the first private offering to be placed simultaneously in Costa Rica and Panama, taking advantage of the standardization of regulations for regional bond issues. The ability to list securities in more than one market broadens and diversifies the sources of funding for issuers and makes more instruments available to investors.
The signing ceremony took place at the Corporation's headquarters in Washington, D.C. Signing for Banco Improsa was Mr. Franco Naranjo, Director of Finance and Administration. Mr. Jacques Rogozinski, General Manager, signed for the IIC.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Jacques Rogozinski
Telephone: (202) 623-3901