IIC Signs Loan Agreement With Agroforestry SME In Paraguay
Asunción, Paraguay - On November 8, 2009, the Inter-American Investment Corporation (IIC) and Emprendimientos Forestales S.R.L. signed a loan agreement under the Small Business Revolving Line (SBRL). Emprendimientos Forestales is a Paraguayan company that provides forestation, reforestation, and related agroforestry services. It is a leading provider of forestry services and has the broadest expertise and know-how in the local market. In March 2009, Emprendimientos Forestales won the "PYME exitosa" (successful SME) award by Asociación de Empresarios Cristianos (ADEC).
The loan proceeds will replace the company’s short-term borrowings, thus improving its debt profile. These short-term borrowings were used to finance a large portion of the company’s operating capital and some recent investments in its nursery production facilities. The loan will help the company plan for growth, with the support of an appropriate financial structure.
The SBRL is a financial product that enables the IIC to offer standardized small loans to eligible small enterprises under an expedited approval process. It is currently offered in The Bahamas, Barbados, Belize, Bolivia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, Trinidad and Tobago, and Uruguay. The SBRL targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as any other sector that contributes to the local economy.
Signing for Emprendimientos Forestales were members Nicolás Silva Berg and Romano Luis Diel. Hernando Lesme, IIC investment officer in charge of the operation, signed on behalf of the IIC.
The IIC 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. In 2008, the IIC reached US$1.5 billion in assets and approved sixty-four operations channeling US$300.5 million to SMEs in the region. 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: Hernando Lesme (in Paraguay)
Telephone: + (595 21) 616-2321