IIC Approves A Loan For Up To US$5.4 Million To Sigma, El Salvador


The loan, for up to US$4.5 million, will be used to upgrade the company's plant and meet its permanent working capital requirements WASHINGTON, D.C. On June 25, 2003, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a loan in the amount of up to US$5.4 million to Sigma, S.A. in El Salvador for an expansion project that consists of financing permanent working capital and the modernization and expansion of different divisions of Sigma through investments in new machinery to improve product quality and provide production flexibility. Sigma, S.A. is a Salvadoran company engaged in the printing, designing and manufacturing of corrugated cardboard packaging, plastic containers, and flexible packaging.

This project also includes the final stage of the implementation of a new management information system that should allow for better inventory and overall control of the business cycle. Sigma seeks to gain market share in regional markets while maintaining its market share in Central American countries. Through the modernization the company will be enabled to attend the large volumes of demand of specific kinds of high quality products required by some important clients.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed/Javier Hernández

Telephone: (202) 623-3981

Email: stevenr@iadb.org