IIC Approves Loan To BGH In Argentina
With this operation, the IIC will support the largest source of jobs in Patagonia
Washington, D.C. - On December 9, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$7 million to BGH S.A., a leading producer and marketer of products and services in the areas of home appliances, telecommunications, technology, and computers.
The loan proceeds will be used to rebuild and expand one of BGH’s plants, which recently burned down. The new plant will have state-of-the-art technology and appropriate safety devices.
The loan will also be used to build a new distribution center in Buenos Aires province that will serve as a support and logistics base for all BGH operations. The new distribution center will enable BGH to manage inventory more flexibly and efficiently.
According to Tomás Bermúdez, IIC Officer in charge of the operation, "Access to long-term financing is scarce in the region’s current financial environment. The IIC is therefore playing a key role in this operation by offering terms and conditions that meet project needs and showing once more that investing in similar projects in the region is viable."
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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. 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: Tomás Bermúdez (in Washington D.C.)
Telephone: (202) 623-1933