Agreement Signed In Argentina For An IIC Loan Of Up To US$3 Million For A Poultry Operation
09/25/2007Avex, S.A. is an export-oriented producer and marketer of chicken and chicken products that began operations in 2007
Buenos Aires, Argentina – On September 26, 2007, the Inter-American Investment Corporation (IIC) signed a loan agreement for up to US$3 million with Avex, S.A., a company located in the city of Río Cuarto, in the province of Córdoba. The IIC loan will finance Avex’s working capital needs during the start-up of its production and marketing activities. The project consists of the construction and start-up of the poultry operation, which includes, initially, four vertically integrated production modules.
Because all of the production inputs are locally sourced, the operation will generate US$39 for every US$1 provided by the IIC. The loan will also lead to vertical integration with Argentina’s major grain producers, which will increase efficiencies and improve cost control. Argentina is probably the country with the lowest poultry production costs in the world thanks to the low cost of grain. This provides the sector with significant export potential, as shown by the considerable increase in volume of poultry exports during 2001-2006 and the first half of 2007.
The loan agreement was signed in the city of Buenos Aires. Signing for Avex, S.A. was Mr. Fernando Oris de Roa, General Manager. Mr. Jacques Rogozinski, General Manager, signed on behalf of the IIC.
The Inter-American Investment Corporation 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. 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: Jacques Rogozinski/John Beckham
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