IIC Supports Ecuador'S Agribusiness Sector With A US$2.2 Million Loan To Ecuaplantation S.A.

11/03/2004

Washington, DC – On November 3, 2004, the Inter-American Investment Corporation (IIC) approved a US$2.2 million loan to Compañía Agrícola e Industrial Ecuaplantation S.A. (Ecuaplantation) to help finance the company's growing working capital requirements.

Ecuaplantation S.A. is an Ecuadorian company whose plant in Guayaquil, Ecuador, processes tropical fruit, such as bananas, passion fruit, mangos, and pineapple, to produce fruit purée, juice concentrate, and frozen chunks for export to Europe and the United States. This is the IIC's second loan to the company. The first loan, for US$2.1 million, was granted in 1993 to help finance the development of farmland and the construction of an industrial processing plant. The company used that loan to make food safety and occupational safety and health improvements. One component of the new, US$2.2 million loan will be earmarked for environmental (effluent) improvements. The loan will help meet financial requirements—such as permanent working capital, trade finance, and maintenance expenses—on better terms than those currently offered by local and international financial institutions in Ecuador.

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. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed/Jorge Ciurlizza

Telephone: (202) 623-3981

Email: stevenr@iadb.org