IIC Finances Growth and Expansion of Uruguay’s Health Sector
US$300,000 loan granted to eMedical S.A. under IIC’s new subordinated debt lending initiative
Montevideo, Uruguay, October 22, 2013 — The Inter-American Investment Corporation (IIC) and eMedical S.A. have signed a loan agreement for up to US$300,000 that will enable the Uruguayan company to keep pace with the growing demand in the local and international market for medical supplies and equipment.
In view of eMedical’s substantial increase in sales in recent years, the proceeds of the loan will be used for working capital to promote the company’s sustainable growth. The IIC funds are part of the new subordinated debt lending initiative under FINPYME Credit, the IIC’s flagship program for financing small and medium-sized enterprises (SMEs).
Gastón Oromí, eMedical’s executive director, noted that “the IIC funding is essential for the strong business growth we are pursuing at eMedical. We need to work on several fronts; for example, improve our debt profile, secure working capital, prepare for our new distribution business, and boost productive capacity at both our industrial plant and a supplementary production project in Brazil.”
“The IIC is proud to support Uruguayan SMEs by furnishing eMedical with the tools it needs to grow its business abroad, diversify its products, and increase its competitiveness both at home and abroad,” added Ignacio González, IIC financial analyst in charge of the operation.
With more than 25 years in business, eMedical is a fixture in the Uruguayan market. Its operations include the importation, manufacture, and sale of medical supplies and equipment, as well as the provision of services in the medical field. Its best-selling item is its chest drainage system, part of its Crosa product line, a leader in this segment. The company also manufactures expandable prosthetic ribs and other medical devices. Its main customers in Uruguay are government medical services. The company also exports to Chile, Venezuela, and Paraguay.
FINPYME Credit is a small loans program that offers competitive financing to SMEs in Latin America and the Caribbean. The loans range from US$100,000 to US$600,000 and are available to businesses from various productive sectors. FINPYME Credit is offered in Uruguay, among other countries of the region, and supports small companies looking to increase their sales by financing investments in working capital and fixed assets.
The new subordinated loans do not require collateral, but rather, a personal guarantee from the business owner. A premium over the base interest rate is applied.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have directly or indirectly funded more than 1.6 million loans and subloans to SMEs in Latin America and the Caribbean. For more information on IIC activities, visit www.iic.org.
Contact: Ignacio González
Telephone: +598 (2) 915-4330 in Montevideo, Uruguay