IIC Approves Loan Of Up To US$1.5 Million To Grupo Forestal Los Nacientes Companies In Costa Rica
03/08/2009The operation is expected to generate some one hundred jobs and bring benefits and progress to a rural community in Costa Rica
Washington, D.C. - On March 9, 2009, the Inter-American Investment Corporation (IIC) approved a US$1.5 million loan to Maderas Cultivadas de Costa Rica S.A. (MCC) and Reforestación Industrial Los Nacientes S.A. (RIN), both of which are part of Grupo Forestal Los Nacientes.
This integrated group of forestry companies operates in Costa Rica and Nicaragua. Combined, its operations encompass the entire production process, from genetic improvement of species and reforestation to the processing and sale of wood products. The companies’ forest plantations hold Forest Stewardship Council international certification.
In Nicaragua, where the wood sector is a key economic player, this project has a demonstration effect in showing that similar, environmentally friendly projects are viable.
The IIC loan proceeds will be used to finance the expansion of productive activities and the purchase of fixed assets, as well as for working and investment capital. The loan will also help the company continue reforesting new land with certified plantations, thus contributing to the company’s sustainable long-term growth.
MCC has high developmental impact in Costa Rica, providing greenhouses and genetically improved seedlings for growers and supporting microenterprises in remote areas by making it easier for them to process their production and haul it to sawmills. The company uses state-of-the-art equipment; it recently upgraded its industrial operations with the largest drier in the country, enabling it to provide more efficiency, capacity, and services to other growers.
"With this operation, the IIC is contributing to the long-term growth of a key sector in our nations’ rural areas, with the greatest impact on job generation in remote areas and an exemplary supply chain. The operation will also support a private group that has managed to balance business performance with social responsibility while protecting the environment," said Juan Fonseca, IIC investment officer in charge of the operation.
MCC also benefited from a diagnostic review carried out under the FINPYME program. This program is an IIC initiative that, in Costa Rica, is being implemented in conjunction with Universidad Latinoamericana de Ciencia y Tecnología (ULACIT). The FINPYME program is being carried out with support from the Republic of Korea through the Korea-IIC SME Development Trust Fund. For additional information, please visit www.finpyme.org.
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 2008, the IIC reached US$1.5 billion in assets and approved sixty-four transactions channeling US$300.5 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: Juan Fonseca (in Costa Rica)
Telephone: + (506) 2523-3348