IIC Signs A Loan Agreement For Up To US$3 Million With Bowfluvial S.A. De Navegación In Paraguay
08/03/2006Asunción, Paraguay—On August 4, 2006, the Inter-American Investment Corporation (IIC) signed a loan agreement for up to US$3 million with Bowfluvial S.A. de Navegación, a Paraguayan river transportation company.
Bowfluvial's core business is shipping along the 3,442 km Paraguay-Paraná waterway from Puerto Cáceres in Brazil to the port of Nueva Palmira in Uruguay. The IIC loan is providing the company, for the first time, with access to credit with a term of more than five years, enabling it to finance future investments appropriately.
The loan will fund a project designed by Bowfluvial technicians to repair approximately fifteen barges, modify them for use on the waterway, and increase their cargo capacity from 1,500 tons to 2,500 tons. In addition to increasing the static capacity of the fleet by 15,000 tons, the useful life of each barge will be lengthened from twenty to twenty-five years. This will increase the available load capacity and improve the average useful life of the barges used on the Paraguay-Paraná waterway. All of the work required for expanding the fleet capacity will be done in Paraguayan shipyards with local labor.
The loan agreement was signed at the IDB country office in Asunción, Paraguay, where the IIC has a local presence. Aureliano González Saldivar, Director, signed for Bowfluvial S.A. de Navegación. Signing for the IIC was Investment Officer Hernando Lesme.
The Inter-American Investment Corporation, a multilateral financial institution that is part of the IDB Group, 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 Paraguay, the IIC offers financing for the financial, agricultural, agribusiness, transportation, and tourism sectors, among others.
The IIC's mission is to promote the economic development of its regional member countries by stimulating 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, visit its Web site at www.iic.int.
Contact: Hernando Lesme (in Paraguay)
Telephone: + (595 21) 616-2321