IIC Supports The Uruguayan Wood, Pulp And Paper Industry With A US$4 Million Loan To Fábrica Nacional De Papel S.A.

08/04/2004

Washington, D.C. - On August 4, 2004, the Inter-American Investment Corporation approved a US$4 million loan to Fábrica Nacional de Papel S.A. (Fanapel). Fanapel is a Uruguayan company that has produced cellulose and paper since 1897. It is one of the largest exporters in the country. The purpose of this loan is to improve the company's debt profile by replacing some short-term liabilities and funding a part of its permanent working capital, thus allowing it to defer current debt and decrease financial costs.

With this operation, the IIC seeks to support the industrial sector in Uruguay. Fanapel has become a leader thanks to its ability to produce a wide range of products for the local and export markets. Financing from the IIC will help the company consolidate its investments in plant upgrades that have doubled its production capacity. It will also enable the company to expand the product range offered in the domestic market and increase environmental investments. The company directly employs 480 workers and is the principal source of employment in the city of Juan Lacaze.

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/Santiago Cat

Telephone: (202) 623-3981

Email: stevenr@iadb.org