|
Introduction
THE INTER-AMERICAN INVESTMENT CORPORATION (IIC) is a multilateral organization.
It began operations in 1989 to promote the economic development of its
Latin American and Caribbean member countries by financing small and medium-size
private enterprise.
To fulfill its mission, the IIC provides project financing in the form
of direct loans and equity investments, lines of credit to local financial
intermediaries, and investments in local and regional investment funds.
It particularly targets small and midsize companies that have difficulty
obtaining financing from other sources on reasonable terms.
In a sense, IIC finance is seed money. The Corporation serves as a catalyst
for attracting other resources: additional financing, technology, and
know-how. These resources are mobilized through cofinancing and syndication,
supporting security underwritings, and identifying joint venture partners.
Lending and investing require evaluation of project soundness and probability
of success. In this preliminary evaluation process, the IIC advises clients
on project design and financial engineering and helps them to structure
their financial plan. As a natural outgrowth of its project financing,
the IIC also offers fee-based advisory services. These services include
counseling private companies on financial engineering and corporate reorganizations.
To obtain IIC financing, projects must offer profitable investment opportunities.
They must also further economic development in some way: by creating jobs,
broadening capital ownership, generating net foreign currency income,
facilitating the transfer of resources and technology, utilizing local
resources, promoting local savings, or promoting the economic integration
of Latin America and the Caribbean. Any environmentally sensitive project
must include specific preventive or restorative measures.
All the powers of the Corporation are vested in its Board of Governors.
The IIC Board of Governors consists of a representative and an alternate
from each member country. Voting power is proportional to each country's
paid-in shares. The Board of Governors appoints a Board of Executive Directors
to which significant authority and powers are delegated.
The Corporation is part of the Inter-American Development Bank Group.
The IIC is legally autonomous, and its resources and management are separate
from those of the Inter-American Development Bank.
|
