inter-american investment corporation idb business seminar: education & health thursday, july...
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Inter-American Investment Corporation
IDB Business Seminar: Education & Health
Thursday, July 15, 2004
David Levy, Investment Officer Emilio Lozoya, Special Projects
(202) 623-3969 (202) 623-3926
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What is the Inter-American Investment Corporation?
The Inter-American Investment Corporation (IIC) is the financial institution of the IDB Group that supports private enterprises in Latin America and the Caribbean, primarily by providing financing in the form of loans and equity investments.
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IDB Group
Multilateral Investment Fund
(MIF)
Inter-American Investment Corporation
(IIC)
IDB IDB GROUPGROUP
The IDB Group is comprised of the Inter-American Development Bank (IDB), the Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF).
Inter-American Development Bank
(IDB)
The IIC is legally autonomous and its resources and management are independent from those of the Inter-American Development Bank.
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Short-, medium- and long-term loans
Syndicated loans
Cuasi-capital and capital investments
Guarantees for loans and security issuances
Direct Products
The IIC serves private enterprises directly by means of:
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Refinancing lines
Lines for project expansions
Working capital lines
Financial and operating lease lines
Trade finance lines
Agency lines
Guarantees for loans and security issuances
Syndicated loans
Indirectly, i.e., through private financial intermediaries, the IIC serves small and medium enterprises with the following products:
Products Provided through Financial Intermediaries
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Advisory services
•Export financing•Project Finance
Participation in investment funds
•Supply chains•Cofinancing with development agencies
Structured loans:
Other Products and Services Provided
Financing programs
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Local Bank-with IIC guarantee
Local Bank-with IIC guarantee
Loan with Guarantee-Conditions:Term: 7 yearsGrace Period: 2 yearsInterest Rate: 25%
Loan with Guarantee-Conditions:Term: 7 yearsGrace Period: 2 yearsInterest Rate: 25%
IIC Guarantee
Bank
Foundation UNIV.
Loan Conditions previous IIC guarantee:
Term: 5 YearsGrace Period: 1 YearInterest Rate: 38%
Loan Conditions previous IIC guarantee:
Term: 5 YearsGrace Period: 1 YearInterest Rate: 38%$ Loan
$ RepaymentBuilding Renting
$ pays building renting
Local Bank Local Bank
Bank
Univ.Foundation
IIC
GUARANTEE STRUCTURE
Garantes 50% of the loan
Catholic University
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Central America: San José, Costa Rica
Andean Region: Bogotá, Colombia
Southern Cone: Montevideo, Uruguay
The IIC serves its clients in Latin America and the Caribbean with a team of highly qualified professionals based in its regional offices and Headquarters.
Headquarters in Washington, DC.
Regional Offices and Central Headquarters
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The IIC supports and accompanies its clients in their financing and development needs by means of long-term relationships.
Clients and Projects
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San Salvador, El Salvador
Through an operating lease, the IIC assisted an advertising agency in procuring computer equipment that will enable the agency to operate competitively.
Clients and Projects
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Guatemala, Guatemala
By means of an operating lease, the IIC enabled a local business to operate a chain of ice cream shops, together with a plant to manufacture raw materials.
Falcón, Venezuela
The IIC supports the local private enterprise. IIC financing has contributed to the development of this Venezuelan organization, which exports shrimp to the United States and Europe.
Clients and Projects
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Venecia, Costa Rica
Operation though local banks to provide a loan to a farm that produces tropical fruit for export.
The IIC supports a wood products expansion project that generates both employment and foreign exchange by exporting furniture to the United States, with strict controls in terms of environmental impact.
La Paz, Bolivia
Clients and Projects
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San José, Costa Rica
The IIC provided financing to Universidad Latina to equip its computer and dentistry laboratories.
Sao Paulo, Brasil
Through the purchase of mortgage-backed securities, the IIC financed the construction of 1,288 houses.
Clients and Projects
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•Project Inquiry Form (see www.iic.int)
•Audited historic financial information and financial projections
Steps for Obtaining Financing
Clients interested in submitting a financing request should send the following information to the IIC:
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Timeline for Processing the Application
Following receipt of the information required, processing of the application will take approximately three to five months:
Initial project review based on the information
submitted
1Analysis and
preparation of Initial Credit
Proposal (ICP)
2
Field Appraisal•Technical evaluation by a sector
specialist•Financial, environmental and legal
evaluation•Negotiation of terms and
conditions
3
Analysis and preparation of the Final Credit
Proposal
4
Approval by the Board of Directors
5Execution of agreements, establishment of security,
monitoring plan and disbursements
6
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Allows businesses to better plan their growth
and development within a solid financial
framework (products/specific need)
Improved environmental management
Increased ability to access financing
Improved corporate governance
Advantages of Working with the IIC
Short-, medium- and long-term financing on competitive terms
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Contact Information UNIVA and ABC Hospital
UNIVAMr. Sotero Arizu, Division Chief, a.i.New Business Development Division (202) 623-3907 [email protected]
ABC HOSPITAL Mrs. Cecilia Savastano, Investment OfficerCorporate Finance Division(202) [email protected]
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More information is available at the following website:
www.iic.int