Inter-American Investment Corporation Approves A Loan Of Up To US$2 Million Fincas Patagónicas S.A.
06/09/2008The IIC loan will further the growth of Argentina’s wine and viticulture industry
Washington, D.C. - On June 10, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$2 million to Fincas Patagónicas S.A., a family business that owns Bodega Tapiz, a winery specializing in fine wine that is chiefly for export. The company owns land in some of the best areas for growing wine grapes in Argentina's Mendoza province.
Fincas Patagónicas S.A. is currently one of the most technologically advanced wineries in Argentina; it has successfully entered international markets such as the U.S. and Europe.
The IIC loan will enable the company to expand its production capacity and increase its export sales, thus meeting its export commitments and satisfying growing demand. The fact that the IIC loan is long-term helps demonstrate a new way to provide financing for SMEs in Argentina.
With this project, the IIC will support the growth of an export-oriented Argentine SME operating in a growing, strategic sector that is a significant generator of foreign exchange. It will also foster the development of a family enterprise by enabling it to strengthen its competitive position in a sector dominated by large corporations with international backing.
Moreover, the renown that Argentine wines enjoy in other countries and the recognized quality of Fincas Patagónicas’ wines could encourage other, similar companies to replicate its business plan in terms of quality and technology.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. 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. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Javier Barsantini (in Chile)
Telephone: + (562) 431-3724