IIC Contributes to the Development of Agriculture and Agribusiness in Ecuador


Loan will finance fixed asset investments to maintain plant's installed capacity

Washington, D.C. - On September 14, 2010, the Inter-American Investment Corporation (IIC) approved a loan of up to US$7 million to Sociedad Agrícola e Industrial San Carlos S.A. (SAISC or Ingenio San Carlos) in Ecuador. The financing will be used to improve the efficiency and productivity of mill processes as well as processes for planting and harvesting sugar cane. The long-term IIC loan complements SAISC's other sources of financing and will allow the company to maintain an appropriate financial structure for this kind of activity, which requires large annual investments in fixed assets.

According to Javier Hernández, IIC Investment Officer in charge of the operation, "It is expected that with this operation the IIC will have a positive impact on private sector development and contribute to preserving SAISC's competitiveness as well as its economic links to small and medium-size sugar cane growers, the supply chain, and the distribution network, including retail sectors."

About Sociedad Agrícola e Industrial San Carlos S.A. (SAISC)

Founded in 1937, SAISC is an integrated producer of sugar, cogenerated power, and alcohol. It has its own plantations and accounts for approximately 34% of the sugar market in Ecuador. SAISC is listed on the Guayaquil stock exchange and has more than 900 shareholders.

On July 20, 2010, the Ministry of the Environment presented Ingenio San Carlos with the Ecuadorian environmental recognition award for 2010 (the first in the country’s history) in view of the company’s cleaner production program. This program refers to Ingenio San Carlos’ biomass (bagasse) power cogeneration project. For additional information about SAISC, please visit: www.sancarlos.com.ec.

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 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int.

Contact: Javier Hernández (in Washington D.C.)

Telephone: (202) 623-3992

Email: javierh@iadb.org