Loan Amount: Up To US$6.5 Million IIC Approved A Loan To Publicidad Sarmiento And Its Chilean Affiliate
08/28/2001An action that fosters international competition on a level playing field WASHINGTON, D.C. - On August 29, 2001, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a loan of up to US$6.5 million to Publicidad Sarmiento, S.A. an Argentine Company and Grupo Sarmiento, S.A. it's Chilean affiliate (GSSA). The project covers the start-up of GSSA's activities in Chile, the expansion of Publicidad Sarmiento's activities in Argentina, and information systems investments.
Through the proposed loan, the IIC will be allowing a Latin American corporation to compete internationally on a level playing field with non-Latin American companies that have access to long-term financing at more reasonable terms. By developing outdoor advertising venues and issuing operating licenses, local governments will be able to obtain new resources from hitherto nonexistent sources. This will enable them to reduce their financial deficits or to finance works for the community. Communities will thus acquire urban fixtures like pedestrian shelters, lampposts, clocks, trashcans, etc., of high esthetic and functional value for the inhabitants. Also, the project includes the planting of trees and the installation of battery collection containers, coupled with an environmental protection educational campaign. In the social area, GSSA will install public playgrounds for children.
The company employs 156 individuals, while GSSA will have 16 permanent employees, in addition to the jobs required to produce and install the urban fixtures during the implementation stage.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Steven Reed/Fernando Luciani
Telephone: (202) 623-3981