IIC Supports Expometal, a Leading Honduran Recycling Company
$240,000 IIC loan to boost competitiveness of Expometal S. de R.L. de C.V.
San Pedro Sula, Honduras, December 16, 2013 — The Inter-American Investment Corporation (IIC) and Expometal S. de R.L. de C.V. (Expometal) have signed a loan agreement for up to US$240,000. The Honduran recycling company will use the loan proceeds for working capital to meet the growing demand for recycling services both inside and outside Honduras.
“We consider the IIC loan to be of key importance, as it will help us implement our business plan, which includes opening offices and collection centers for recyclable materials throughout Honduras. This will enable us to increase our volume of exports and further our sustainable growth over the long term, making us a more stable and profitable business,” noted René David Cruz, Expometal’s general manager.
“Recycling is one of the best ways to protect the environment. With this financing, the IIC is supporting Expometal in its efforts to lessen the impact on the environment by reducing the amount of solid waste sent to sanitary landfills. In addition, this project will help improve the socioeconomic prospects of low-income individuals by creating direct and indirect jobs on a large scale,” added Luisa Mayorga, IIC senior investment associate in charge of the operation.
Founded a decade ago, Expometal is a Honduran company that recycles nonferrous metal and plastic and exports these materials to Bangladesh, China, India, Taipei China, the United States, and Vietnam. In 2010, Expometal became part of Honduras’ industrial free zone for companies that manufacture goods for export (Zonas Industriales de Procesamiento para Exportaciones). Under that system, all waste purchased is processed into raw materials that are subsequently exported to industries that process and use these materials in the United States and some Asian countries.
FINPYME Credit is a small-loans program that provides competitive financing to SMEs in Latin America and the Caribbean. The loans range from US$100,000 to US$600,000 and are available to businesses in a variety of productive sectors. FINPYME Credit is offered in Honduras, among other countries of the region, and supports small companies looking to increase their sales by financing investments in working capital as well as fixed assets.
The new subordinated loans do not require collateral but do require a personal guarantee by the owner. A premium over the base interest rate is applied.
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 small and medium-sized enterprises. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2012, the IIC approved more than 70 operations totaling some US$400 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Luisa Mayorga
Telephone: +505 2264-9140 in Managua, Nicaragua