IIC Signs Loan Of Up To US$37 Million With Cone Denim De Nicaragua
12/12/2007A loan of up to US$15 million to be funded by the IIC and a cofinancing amount totaling US$22 million to be funded by Nicaraguan financial institutions
Managua, Nicaragua - On December 12, 2007, the Inter-American Investment Corporation (IIC) signed a syndicated loan of up to US$37 million with Cone Denim de Nicaragua, S.A. (CDN). The participating Nicaraguan banks are Banpro, BAC, Bancentro, and HSBC Nicaragua. The proceeds of the loan will be used for building and operating a 600,000 square foot plant that will be the first denim manufacturing plant in Central America. The total cost of the project is US$107 million including working capital, making it one of the largest private investments in Nicaragua.
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. The plant will have a production capacity of 28 million yards of denim yearly.
Charles Matt Haynes, Vice President of Denim Operations - Latin America said "We are very excited about our Cone Denim Nicaragua facility and the capabilities it will provide to our customers in the Central American supply chain. Construction and start-up of the CDN facility are underway, and we expect to be producing high-quality denim by the first quarter of 2008."
The loan agreement was signed in Managua, where the IIC has a local presence. Charles Matt Haynes, Vice President of Denim Operations - Latin America, signed for Cone Denim, and Gustavo Romero, Senior Investment Officer, signed for the IIC.
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/+ (505) 2267-0831