IIC strengthens Nicaraguan Livestock Sector and Regional Cooperation
New meat production plant is inaugurated
Washington, D.C., May 14, 2015 – A meat processing plant funded by a US$115 million investment from unique mix of investors led by the Inter-American Investment Corporation (IIC) opened yesterday in Nicaragua. The meat processing plant, owned by Ganadería Integral de Nicaragua, S.A. (“GINSA”), a company related to Grupo Viz de México, is the first to operate under the “SuKarne” brand outside Mexico.
Development and construction of the plant was made possible by a combination of financing brought together by the IIC from multiple international and multilateral sources, including Rabobank-Mexico, Banco Nacional de Comercio Exterior, S.N.C, (Bancomext), and Banco Latinoamericano de Comercio Exterior S.A. (Bladex). The IIC loan consisted of an A loan of up to US$5 million; a B loan from participating banks of up to US$21 million; and a C loan from Mexico’s Banco Nacional de Comercio Exterior, S.N.C. of up to US$20 million. This was the IIC’s second loan to GINSA. The first IIC loan to GINSA was in 2012 for US$10 million.
“We are pleased to be present at this inauguration to see how the IIC is helping to transform the beef industry in Nicaragua by working with other private and public financial institutions and to strength the SME cattle supplier chain in the country,” said Javier Hernández, the IIC investment officer in charge of the operation.
The GINSA project involved building, equipping, and commissioning a new slaughterhouse capable of processing up to 180,000 head of cattle annually, supplied by GINSA itself and other cattle producers. The project also included expanding the corrals and the feed plant to handle inventory of up to 50,000 head of cattle. With this project, GINSA becomes a fully vertically-integrated beef producer, handling all steps of production from raising the cattle to sale and export of the final product.
This IIC-funded project is expected to create some 500 direct jobs, and the expansion of GINSA’s operations in Nicaragua represents a significant boost to the company’s suppliers, many of which are small and medium-sized enterprises (SMEs).
In addition to taking the lead in funding the project, the IIC is exploring the possibility of providing advisory services to GINSA that would involve research on export markets and beef traceability practices, both with an eye toward helping GINSA market Nicaraguan beef in Europe.
Nicaragua is a significant player in Central America’s agribusiness sector, running a beef and cattle trade surplus. Beef and cattle are Nicaragua’s second largest export product, after coffee.
About GINSA and Grupo Viz
Ganadería Integral de Nicaragua, S.A. (“GINSA”) is a company related to Grupo Viz de México. With its SuKarne brand, Grupo Viz is Mexico’s largest beef producer and an exporter to the United States, Japan, Russia, South Korea, and many other markets. Headquartered in Culiacán, in the state of Sinaloa, Grupo Viz has four production facilities in Mexico (and one in Nicaragua) and a nationwide distribution and marketing network, also in Mexico. For more information visit www.sukarne.com.mx
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on SMEs. We help companies streamline their management processes and provide them with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2014, the IIC approved 64 operations for a total amount of US$426.3 million. Since its inception, the IIC has approved more than 920 direct loan and equity investments to SMEs and financial intermediaries, for a total of US$5.6 billion. An additional US$3.7 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Javier Hernández
Telephone: (202) 623-3992