Automaq Receives US$3.9 Million Loan to Expand Services to Paraguayan Agricultural Producers
Proceeds of the IIC loan to benefit some 950 agricultural producers in rural Paraguay
Washington, D.C., December 30, 2013 — The Inter-American Investment Corporation (IIC) has approved a loan for up to US$3.9 million to Automotores y Maquinaria S.A.E.C.A. (Automaq), a dealer of agricultural machinery and vehicles, to expand two of its outlets in rural Paraguay serving some 950 agricultural producers. With this expansion, the company expects to grow its client base to nearly 1,600 over the next five years.
Half of Automaq’s agricultural customers use the company’s financing to purchase the company’s goods. As a result of this operation, Automaq expects to gradually increase its sales of financed goods to 65% by 2022.
“We firmly believe that the backing received from the IIC is of essential importance, as it directly supports Paraguay’s farmers, helping them produce greater and higher quality yields and fostering development in different areas of the country,” observed Jorge Pecci Miltos, CEO of Automaq.
“This IIC operation is promoting development of Paraguay’s agricultural sector by providing Automaq with the tools it needs for its expansion and growth and providing jobs in rural areas of the country,” added Hernando Lesme, IIC senior investment officer in charge of the operation.
Founded more than 50 years ago, Automaq is a Paraguayan importer and dealer of machinery and vehicles. It focuses on the agricultural sector with brands such as John Deere and Kuhn and is also an exclusive representative of Peugeot and Citroën cars and utility vehicles. The company provides repair/maintenance and post-sale services for the brands of agricultural machinery, tools, and vehicles it represents and operates 11 outlets equipped with warehouse facilities, a sales office, and a repair and maintenance shop.
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). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2012, the IIC approved more than 70 operations totaling some US$400 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Hernando Lesme
Telephone: +595 (21) 616-2321