Ten Million Dollars From IIC Plus A Fifteen Million Dollar B Loan

12/12/2001

The IIC approves a loan to Santa Therezinha A paper manufacturing company undertakes a modernization process. The Inter-American Investment Corporation (IIC) announced the approval of two loans for a total of $25 million to Santa Therezinha S.A. ("Santher"), a paper manufacturing company in Brazil. The project -- for a total cost of $23.6 million -- consists of several investments to modernize the company's manufacturing facilities and develop its line of feminine care products.

Santher is a privately-owned, medium-size semi-integrated producer of tissue paper and special light paper products in Brazil. It is the market leader in the paper towel and toilet paper segment. The modernization process will enable Santher to reduce costs, increase productivity, and improve the management of waste from paper production.

The company owns and operates four paper mills in Brazil, the largest of which is in Bragança Paulista, some 90 kilometers from São Paulo. The other mills are in the states of Minas Gerais and Rio Grande do Sul, and in the city of São Paulo.

The project will foster the utilization of recyclable products. It will also increase the supply of consumer products such as feminine care products, foster the transfer of new technology, and create 50 permanent jobs in addition to temporary jobs.

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

Telephone: (202) 623-3981

Email: stevenr@iadb.org