Sugar Manufacturer of Peruvian Grupo Costa del Sol’s to Build New Mill with IIC Support
Loan of up to US$3.65 million to Consorcio Azucarero S.A.C. will create up to 660 jobs during the growing and harvesting seasons
Washington, D.C., June 6, 2014 -- The Inter-American Investment Corporation (IIC) has approved a loan of up to US$3.65 million for Peruvian sugar manufacturer Consorcio Azucarero S.A.C. (CASAC) that will finance the construction, development, and beginning of operations of a new sugar mill with the capacity to process 1,200 metric tons of sugar cane per day in Lambayeque province in northern Peru.
The sugar cane processed by the mill will be sourced from 26 small independent producers, and the light brown sugar produced will be sold on the regional market.
“With this long-term operation, the IIC supports the development of a new Peruvian enterprise in the agricultural sector that will create up to 660 new jobs for both women and men during the growing and harvesting seasons in rural Peru,” said Margarita García de Paredes, IIC lead investment officer in charge of the operation.
“With IIC support, we will provide the community with an opportunity for development with the same dedication, transparency, and commitment that has characterized all of our other enterprises,” said Rafael Barúa, central corporate manager (gerente central corporativo) of Grupo Costa del Sol, which owns CASAC. “The mill will begin operating in the fourth quarter of 2015, reaching full production capacity in June 2016.”
CASAC is owned by Peruvian conglomerate Grupo Costa del Sol, which operates in the agroindustry, aquaculture, hotel, and services industries. The group, which was founded in 1990, employs more than 6,800 people in its different lines of business and expects to bring in US$177 million in gross revenue this year. With this initiative, Grupo Costa del Sol opens up a new area of development that is expected to require US$11.62 million in investment.
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 (SMEs). 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 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Margarita García de Paredes
Telephone: +1 (202) 623-3932 in Washington, D.C.