inter-american investment corporation: 2012 annual report

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T h e

I I C

i n

B ri e f

Operational Highlights: A Strong Year Summary of IIC Operations The IIC’s operational and financial performance in 2012 was very strong, despite continued economic uncertainty

bond issue—its third thus far in the Mexican securities

in the United States and the eurozone—both key export

market. The IIC bond issue totaled 800 million Mexican

markets for many Latin American and Caribbean countries.

pesos, or approximately $60 million, the proceeds of

In 2012, growth in the region was 3.4%—down from the

which have been used to benefit Mexican SMEs in 2012

6.2% and 4.5% recorded in 2010 and 2011, respectively.

and to create a solid pipeline of potential investment

Despite this weak backdrop, the IIC was able to exceed its

opportunities for 2013.

business plan targets and approve 73 operations during

The FINPYME Credit program was revamped in 2012

the year, investing a total of $378.9 million in the region to

to make it more efficient and responsive to the needs

further support SME growth and development.

of the region’s smallest SMEs. Strategic alliances with

This year, the IIC also kept its focus on the strategic

both the Inter-American Development Bank and the

initiatives outlined in its business plan for 2011–2013,

Multilateral Investment Fund—the other members of

such as concentrating its activities in less developed

the IDB Group—also helped create new business

markets, bolstering its capacity to offer local-currency

opportunities in The Bahamas, Haiti, and Trinidad and

funding, and granting more small loans through its

Tobago. In 2012, the IIC approved 15 FINPYME Credit

FINPYME Credit program.

projects averaging $265,333.

Of the 73 operations approved in 2012, a full 60% were

All these activities helped grow the IIC’s outstanding

in the region’s smallest economies, compared to only 49%

portfolio by 7%, from $1.02 billion at the close of 2011 to

at the end of the last planning cycle (2008–2010). Of note

$1.09 billion by year-end 2012. Most—approximately 67.6%—

were significant investments in Jamaica’s tourism industry,

of the portfolio remained concentrated in the financial

a second loan to an existing client in Haiti, and a number

sector. Energy and power projects and investments in

of infrastructure projects in Ecuador. The Corporation also

agricultural products made up most of its corporate

approved substantial funding for hydropower projects

operations portfolio (32.4%).

during the year. The IIC continues to view the region as an important source of fresh business opportunities and fertile ground for piloting new initiatives and financial products.

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Early in 2012, the IIC launched its fourth local-currency


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