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

davidl@iadb.org emiliol@iadb.org

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.

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.

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:

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

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

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

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

The IIC supports and accompanies its clients in their financing and development needs by means of long-term relationships.

Clients and Projects

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

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

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

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

•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:

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

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

Contact Information UNIVA and ABC Hospital

UNIVAMr. Sotero Arizu, Division Chief, a.i.New Business Development Division (202) 623-3907 soteroa@iabd.org

ABC HOSPITAL Mrs. Cecilia Savastano, Investment OfficerCorporate Finance Division(202) 623-3961anas@iadb.org

More information is available at the following website:

www.iic.int