IIC approves loan to Central America’s GMG Holding S.A.


Washington, D.C. - On May 10, 2011, the Inter-American Investment Corporation (IIC) approved a loan of up to US$10 million to GMG Holding S.A. that is part of a syndicated loan arranged by Citibank. GMG Holding will use the loan proceeds to refinance financial liabilities and finance medium-term accounts receivable.

According to Gastón Monge, GMG Holding Chief Executive Officer and Chairman of the Board, "The syndicated loan in which the IIC is participating will help strengthen GMG Holding’s financial structure, support our group’s growth, and enable us to open new points of sale to provide our clients with better credit facilities and access to more products, thereby improving their quality of life."

According to Rodrigo Navas, IIC Senior Investment Officer in charge of the operation, "This operation is expected to have a positive impact on the development of the private sector in Central America and support the region’s economy by enabling GMG Holding to open new stores in the region and thereby create new jobs. With this operation the IIC is promoting regional integration and seeking to provide GMG Holding with the financial flexibility it needs to support its projected growth over the next few years. GMG Holding offers credit to persons at the base of the pyramid, who have limited access to the financial system, providing them with a sustainable way to buy products that improve their quality of life."

About GMG Holding S.A.

GMG Holding S.A. is the parent company of El Gallo más Gallo, Almacenes Prado, El Verdugo, Importadora Monge, and Play, which import electrical appliances and sell them on the wholesale and retail market. They also offer credit for retail appliance sales. GMG Holding is the market leader in Costa Rica and Nicaragua and has a significant share of the other markets in which it operates.

Its retail sales are channeled through its network of 394 stores distributed among five Central American countries.

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 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Contact: Rodrigo Navas

Telephone: (202) 623-3926

Email: rodrigon@iadb.org