A US$3 Million IIC Loan To Banca Promérica S.A. Will Provide Funding For SMEs And Housing Construction In Costa Rica
09/10/2007Washington, D.C. - On September 11, 2007, the Inter-American Investment Corporation (IIC) approved a US$3 million loan to Banca Promérica S.A., a small commercial bank that provides a diversified range of services including medium- and long-term loans to SMEs, chiefly in the manufacturing, construction, and international trade sectors.
This transaction was presented to the IIC by Citibank, N.A., which is structuring a credit facility of up to US$30 million. The presence of a multilateral such as the IIC will give the transaction a stamp of due diligence and confidence in Banca Promérica S.A. as it broadens and diversifies its sources of medium-and long-term funding.
The purpose of the operation is to lend to companies with annual revenues of up to US$10 million and to finance housing via mortgage loans of no more than US$120,000 for middle and lower-middle class segments of the population. The loan will indirectly benefit the construction sector, which accounts for 4.5% of Costa Rica's GDP and is a significant source of employment. The operation will also benefit other industries that provide inputs and services to the housing sector.
According to Carlos Roa, IIC Financial Institutions and Structured Finance Coordinator, "the loan will improve access to housing for middle and lower-middle class segments of the population in Costa Rica."
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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 member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, please visit www.iic.int.
Contact: Carlos Roa/Ana Cecilia Savastano
Telephone: (202) 623-3955