IIC Renews Financial Support for Mexico's Agricultural Sector
10/24/2011Local Currency Financing to Benefit at Least 750 Small Producers
Washington, D.C. — On October 25, 2011, the Inter-American Investment Corporation (IIC) approved a loan of up to MX$62.5 million to Almacenadora Mercader, S.A. (ALMER).
This operation, the IIC's fifth with ALMER and the first in Mexican pesos, is a renewal of existing financing to support the company's grain (mainly white corn) purchase and storage program and to step up wheat and sorghum purchases from small grain producers. ALMER will continue using funding from the IIC to provide financing to approximately 750 small producers by either purchasing their production with an option to repurchase, or warehousing their product until it is sold.
According to IIC investment officer Mónica Navarrete: "With this loan, the IIC is supporting SMEs in the Mexican agricultural sector. By extending financing in Mexican pesos, the IIC is helping ALMER lower its exchange rate risk. Our first operation with ALMER, dating back to 2000, was so innovative in Mexico that other financial institutions have replicated it; it is now one of the main mechanisms for financing the warehousing sector in the country."About ALMER
ALMER, established in July 1998, is the largest bonded warehouse in Mexico. As of September 2011, ALMER directly operates ten warehouse complexes, rents another six, and licenses 452 smaller ones. It also has a railroad grain terminal and other transportation infrastructure. For more information visit www.almer.com.mxAbout 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 49 operations, channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.org
Contact: Mónica Navarrete (in El Salvador)
Telephone: + (503) 2233-8901