IIC and Banco de Costa Rica Sign Subordinated Loan Agreement of up to US$30 Million
Funds will be used to shore up Banco de Costa Rica’s equity position and increase financing to Costa Rican SMEs
San José, Costa Rica — On March 13, 2012, the Inter-American Investment Corporation (IIC) and Banco de Costa Rica (BCR) signed a subordinated debt agreement for a loan of US$30 million to assist small- and medium-sized enterprises (SMEs) and buoy BCR’s position in the Costa Rican market.
This will be the first transaction of this type by a state-owned bank since the reforms enacted by the country’s Basic Law on the National Banking System, enabling state-owned financial institutions to take on subordinated debt from multilateral lending institutions.
“This subordinated loan will enable BCR to increase its capital adequacy and provide SMEs with more credit options. The loan makes it possible for us to continue supporting one of the most dynamic sectors of the national economy, and is also testament to the confidence the IIC places in BCR’s work and results,” noted Mario Rivera Turcios, general manager of Banco de Costa Rica.
According to Rodrigo Navas Oreamuno, the IIC’s senior investment officer in charge of this transaction, “The IIC loan will support the expansion of BCR’s SME loan portfolio in Costa Rica by attending to the medium-term financial needs of these companies with subloans of up to US$500,000 per client.”
Mario Rivera Turcios signed for BCR, and Rodrigo Navas, on behalf of the IIC.
Since its inception, BCR has pursued activities in which it has a clear competitive advantage, enabling it to develop excellent products and services, as well as generate the necessary profits to remain sound, demonstrate its reliability, and contribute to the country’s sustainable development. In recent years, BCR has been working to overhaul and modernize its services and customer care operations, with a view to enhancing responsiveness and convenience through the use and application of modern technologies. For more information, visit www.bancoprocredit.com.
About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing 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 2011, the IIC approved 71 operations, channeling US$464.7million to SMEs in the region. As of September 2011, the IIC’s equity totaled $799 million, with US$1.44 billion in assets, US$987 million of which make up its development portfolio in the region. For more information on the IIC’s activities, visit www.iic.org.
Contact: Rodrigo Navas
Telephone: + 1 (202) 623- 3926