IIC Supports the Development of Uruguay’s Agriculture Sector

03/30/2015

A loan of US$130,000 will enable Machín Cladera Sociedad Civil to boost its productivity

Montevideo, Uruguay, March 30, 2015 — A loan of US$130,000 from the Inter-American Investment Corporation (IIC) to Uruguayan milk producer Machín Cladera will enable the company to boost its productivity by investing in fixed assets and refinancing short-term debt.

The loan was approved under FINPYME Credit, an IIC program for providing financing to small and medium-sized enterprises (SMEs). This financing will also enable the company to enhance its infrastructure and purchase equipment and machinery to boost productivity, with an increase in milk yield per cow.

“The IIC’s support enables us to consolidate the transfer to the next generation and modernize our technology and facilities to ensure our continued sustainability and long-term viability and to maintain the balance between the environment, the well-being of our animals, and our human resources,” said Diego Machín Cladera, director of Machín Cladera. “We are also delighted to establish these ties, which we expect to be the foundations of a mutually beneficial relationship that will provide us with the feedback necessary to continue to grow as individuals and as an organization.”

“With this financing, the IIC contributes to Uruguay’s economic development and, in turn, supports the continuing growth and development of an SME in the market, helping the company achieve its goal of increasing production as well as contributing to the sector’s development in the country,” said Ignacio González Darriulat, the IIC financial analyst in charge of the operation.
FINPYME Credit is a small-loans program that provides 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 in the region, and supports small companies looking to increase their sales by financing investments in working capital and fixed assets.

Machín Cladera—a Uruguayan company that has been operating for 25 years in the city of 25 de Agosto—produces and sells unprocessed milk. It sells cattle as a secondary business. Although the company in its current form is relatively young, it is a family business with 100 years of history that has been passed down through the generations and is currently in the hands of the Machín Cladera brothers.

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 (SMEs). The IIC provides companies with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2014, the IIC approved 64 operations totaling US$426.3 million. Since its inception, the IIC has approved more than 920 direct loan and equity investments to SMEs and financial intermediaries, for a total of US$5.6 billion. An additional US$3.7 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.

Contact: Ignacio González Darriulat

Telephone: +598 2915 3696

Email: ignaciog@iadb.org