IIC loan will contribute to the development of renewable energy production in Argentina


Project to include raw material purchases from more than 200 independent growers

Washington, D.C. - On June 14, 2011, the Inter-American Investment Corporation (IIC) approved a loan of up to US$40 million—consisting of an A loan of up to US$6.5 million and a B loan of up to US$33.5 million—to Viluco S.A. in Argentina. The loan will be used to secure an appropriate long-term financial structure for investments made during the implementation and start-up of an industrial plant for producing soybean meal and biodiesel in Frías, Santiago del Estero province.

The President of Viluco S.A., Pablo Lucci, stated: "This project is yet another example of our operations’ contribution to sustainable environmental and social development."

"We chose Santiago del Estero—and specifically Frías—for this undertaking for its strategic location," stressed Viluco Director Daniel Lucci.

According to Hernando Lesme, IIC Investment Officer in charge of the operation, "This project involves expansion and diversification by industrializing agricultural production. It is in line with the IIC’s desire to contribute to the development of renewable energy production in the biofuel market. Moreover, we are supporting a project that promotes innovation and technological development and helps diversify Argentina's economy and create new jobs."

About Viluco S.A.

Established in 1973, Viluco is an Argentinian company that is part of Grupo Lucci, an agribusiness group. Viluco grows grains, with a harvest area of approximately 35,000 hectares in northern Argentina. It produces soy flour, soybean oil, and biodiesel since July 2010, and has become a true example of value creation through regional integration. For more information on Viluco, please visit www.vilucosa.com.ar

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: Hernando Lesme

Telephone: + (595 21) 616-2321

Email: hernandol@iadb.org