Developmental Investment Activities
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Mexico
Almacenadora Mercader, S.A. (Almer) is a grain warehousing company that was privatized in 1998. A $10 million loan from the IIC will increase Almer's permanent working capital so that it may purchase a larger volume of the white corn that is used to make tortillas, a staple foodstuff. As a warehousing company, Almer plays a key role in the tortilla production chain because the corn buying, storage, grading, and selling services it provides help ensure the timely supply of corn from the many, mostly small, farmers to tortilla producers. Almer also plans to purchase more grain from Mexican producers via repurchase agreements (“repos”) to be financed with the IIC loan.
The Almer project supports the development of the Mexican capital market by creating the basis for the eventual securitization of the grain purchase instruments (warehouse receipts). Agricultural producers will gain access to credit and to modern distribution systems and risk management instruments. It is anticipated that around 2,500 farmers will benefit from the program per cycle, with a total of 10,000 farmers per year. In addition, the project is expected to create 132 direct jobs.
Of Mexico's four top hospitals, Hospital ABC is the only one that is not for profit. It also provides extensive charity services and a wide range of in-house training and research programs. Hospital ABC will construct a new hospital clinic in the Santa Fe area of Mexico City. The first phase of this long-term project, funded in part by a $10 million loan from the Corporation, calls for a specialized outpatient center, including day surgery; a 100-unit medical office building; all related diagnostic services such as a laboratory and an imaging center; and a preventive medicine center. The facility will also include a 24-hour emergency department, a welfare clinic intended to deliver services to the poor as per Hospital ABC's mandate, and sixty hospital beds.
Although Mexico is attracting foreign investment, most of the incoming capital has been concentrated on the funding needs of large transactions. Multinational Industrial Fund, an $80 million private equity fund, will invest in equity and quasi-equity securities of small and medium-size Mexican companies entering into joint ventures with foreign companies to generate exports. It will thus support the creation and expansion of small and medium-scale enterprises in Mexico that lack access to equity capital and promote export sales and the transfer of technology.
| IIC equity investment | $8 million |
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Number of end beneficiaries | 15 |
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Job creation | 450 |
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GDP contribution | $300 million over 10 years |
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