IIC Signs A US$5 Million Loan Agreement With Conaprole In Montevideo, Uruguay
08/23/2005Montevideo, Uruguay - On August 22, 2005, the Inter-American Investment Corporation (IIC) and Cooperativa Nacional de Productores de Leche ("Conaprole") signed a loan agreement for up to US$5 million to provide Conaprole with working capital financing. Conaprole, which was established in 1935, is a well-known food product company in Uruguay. The loan is part of the IIC's supply chain financial support program that seeks to increase the flow of financing for small and medium-size companies in Latin America and the Caribbean.
The signing ceremony took place in Montevideo, Uruguay. Signing on behalf of Conaprole were Messrs. Jorge Panizza Torrens, President, and Rubén Núñez Hernández, General Manager. Mr. Enrique V. Iglesias, Chairman of the Board of Executive Directors, signed for the Inter-American Investment Corporation.
Conaprole will use the proceeds from the IIC loan to complete the structure of its permanent working capital financing. Through this project, the IIC will enhance the economic viability of this traditional dairy producer co-op that receives and processes milk from some 2,600 small and medium-size producers. It produces pasteurized milk and a wide range of other products that it markets locally and for export. Exports account for more than 50% of Conaprole's sales and go to more than forty countries. The company is Latin America's second largest exporter of dairy products and Uruguay's leading exporter overall. Because Conaprole is a co-op, the loan will provide co-op members with a greater degree of security that they will be able to sell their production, as well as easier access to financing for inputs and equipment.
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.
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