IIC Supports The Poultry And Cattle Industry In Nicaragua With A Loan Of Up To US$4.2 Million
06/13/2005Washington, D.C. - On June 14, 2005, the Inter-American Investment Corporation (IIC) granted a loan of up to US$4.2 million to Avícola La Estrella, S.A. comprising a US$2.2 million tranche A and a US$2 million tranche C. The purpose of the project is to improve the company's cash flow by alleviating its financial burden and improving its debt profile.
Avícola La Estrella will use the IIC loan to refinance debt and finance working capital. The company, founded in 1972, produces and markets chicken meat, table eggs, and alternative chicken-based products. It is the second largest player in the Nicaraguan chicken and eggs market. Financing from the IIC will help enhance the competitive position of a medium-size Nicaraguan agribusiness that produces and markets high value added products. The company is also a major employer providing permanent jobs for more than 1,100 people. The loan will enable the company to continue introducing modern production processes and best practices to make its operations more efficient and consolidate its vertical integration.
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/Rodrigo Elliot
Telephone: (202) 623-3981