IIC Renews Its Financial Support For Mexico'S Farm Sector
05/10/2010An estimated 1,500 small growers should benefit from this transaction
Washington, D.C. - On May 11, 2010, the Inter-American Investment Corporation (IIC) approved a loan of up to US$10 million to Almacenadora Mercader, S.A. (Almer), the largest bonded warehouse in Mexico. Almer serves 21 states.
This operation—the IIC's fourth with Almer—will extend financing for the existing program for the storage and/or purchase of mainly white corn, as well as wheat and sorghum, from small grain growers. As part of the project, Almer will continue to use the proceeds from the IIC loan to provide financing to approximately 1,500 small producers by purchasing their production with a repurchase option or warehousing it until it is sold.
"I am very glad to continue to support Mexican farmers, especially when it comes to corn, which is a staple in the Mexican diet," said IIC Investment Officer David Levy.
The IIC's first operation with Almer was approved in 2000 and was such an innovation in Mexico that it was replicated by other financial institutions. This financing tool is now the one most frequently used by Mexico's warehousing industry.
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: David Levy
Telephone: (202) 623-3969