IIC Approves Loan To Nuevo Banco Comercial S.A. In Uruguay
11/16/2009Washington, D.C. - On November 17, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$16 million (comprising an A loan of up to US$6 million and a B loan of up to US$10 million) to Nuevo Banco Comercial S.A. in Uruguay. Nuevo Banco Comercial, a universal bank strongly positioned in the SME and consumer bank sectors, has a solid client and product base and a wide network of branch offices throughout the country.
The objective of this transaction is to finance eligible projects via onlending to eligible enterprises in Uruguay. These are SMEs in Uruguay that require medium- or long-term financing in order to carry out their operations and currently have limited access to financing with terms longer than one year. The IIC will fund the A loan and, on a best-efforts basis, will sell participations in the B loan or structure a parallel loan.
The A/B loan will be used to provide financing to eligible enterprises with sales that do not exceed US$10 million per year. The subloans may not exceed US$500,000 per eligible enterprise or US$500,000 per economic group; they are subject to the restrictions defined in the IIC list of excluded activities. The proceeds will be used mainly to finance the purchase of fixed assets and machinery by eligible enterprises, as well as for financing working capital.
"The demand for such loans among SMEs in Uruguay is high, but they are difficult to obtain. These companies need alternative financing like this to properly fund their operations, increase their production capacity, and improve their ability to compete internationally," stated Santiago Cat, IIC investment officer in charge of the operation.
The IIC 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. In 2008, the IIC reached US$1.5 billion in assets and approved sixty-four operations channeling US$300.5 million to SMEs in the region. 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: Santiago Cat (in Uruguay)
Telephone: + (598) 2915-3696