IIC Signs Master Participation Agreement With DFLSA Inc. To Foster Development Of SMEs In The Caribbean
06/24/2007The program will lend up to US$1 million from the IIC's Small Business Revolving Line
Washington, D.C.- On June 22, 2007, the Inter-American Investment Corporation (IIC) signed a participation agreement with DFLSA Incorporated, a subsidiary of Development Finance Limited (DFL), to purchase participations in DFLSA-originated loans to SMEs in Guyana and Suriname for expansion projects, capital improvements, debt refinancing, and working capital. IIC expects that five to ten SMEs will benefit from the program over a five-year period.
In signing this agreement, the IIC is continuing to expand its Small Business Revolving Line (SBRL) approved in early 2006. Under the SBRL, the IIC has already approved a total of US$1.4 million for eight operations in Nicaragua, Paraguay, and Uruguay. IIC expects to replicate similar participation agreements in other nations where it currently does not have a local presence.
DFL, and its subsidiary DFLSA Inc., operate like investment banks providing corporate finance, risk capital, and strategic management advisory services to private enterprises. Both DFL and DFLSA Inc. have been working with the IIC in the Caribbean to provide financing for SMEs. The IIC has had an 8.45% shareholding in DFL since 1990.
The IIC recently made a US$200,000 direct investment in DFLSA Inc., enabling the latter to become the leading provider of financial services to SMEs in Guyana and Suriname. Moreover, the Multilateral Investment Fund (MIF) granted DFLSA a US$2.5 million loan along with a technical assistance package. Both the MIF and the IIC are members of the Inter-American Development Bank Group (IDB Group).
The agreement was signed on June 22 by Mr. Gerard Pemberton, Chairman of DFLSA Incorporated, and Mr. Jacques Rogozinski, IIC General Manager.
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. For more information on the IIC's activities, please visit www.iic.int.
Contact: John Beckham/Gregory Da Re
Telephone: (202) 623-3984/(202) 623-2522