Support For Peruvian Agribusiness Exports IIC Approves A US$5.5 Million Loan To IQF Del Peru, S.A. For An Expansion Of Its Agribusiness Activities

05/21/2003

WASHINGTON, D.C. - On February 5, 2003, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a loan in the amount of up to US$5.5 million to IQF del Peru, S.A. and Sociedad Agrícola Tacaraca, S.A. for an expansion project that consists of increasing the asparagus, artichoke and avocado planting and processing capacity, as well as building and equipping a canning facility. The funding will enable IQF to increase its yearly exports by 80%.

This project involves the purchase of approximately 390 hectares of farmland in the Ica Valley to be used for growing asparagus, artichokes and avocados, thus increasing the supply of company-grown produce. The IIC funds will also be used for the installation of a new IQF (individual quick frozen) tunnel in one of the company's processing plants and for building and equipping a canning facility adjacent to this processing plant. The project will also increase the Company's frozen product storage capacity and permit the installation of irrigation systems at the new farms.

By supporting this project, the IIC will make it possible to create 630 jobs in Ica and surrounding communities, improving the standard of living for inhabitants of the area. It will also increase the production capacity for products that have shown a significant increase in demand. Because all of these products are sold abroad, the foreign currency generation capacity will increase from a total of US$12.7 million per year to nearly US$20.7 million per year as a result of this project.

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/Juan Carlos Pereira

Telephone: (202) 623-3981

Email: stevenr@iadb.org