Financial Sector
Loans for medium-sized agricultural businesses in Latin America
DEG awarded a long-term loan to the regional Latin American Agribusiness Development Corporation (LAAD). This company gives medium sized, export-dedicated enterprises in agriculture and food access to investment finance that they would otherwise be practically unable to obtain. This allows investments to be realized even in countries like Ecuador and Bolivia, which are regarded as high risks, thereby promoting employment in the agricultural sector.
Guarantee for bond issued by a Mexican mortgage bank
In addition to offering credit for house-building companies, the Mexican mortgage bank Crédito y Casa S.A. (CyC) also offers mortgage loans to families with medium and small incomes - loans that are in great demand. CyC has issued a bond to put its refinancing on a broader footing. By guaranteeing to support the bond securitization transaction, DEG contributed to securing the market placing of the bond. The improved refinance means CyC can grant additional credit to finance simple housing. As a result, this new kind of bond provides an alternative for institutional investors in Mexico, who until now have practically only been able to invest in government bonds.
Equity in an East African investment company
The investment company Industrial Promotion Services Kenya Ltd. (IPSK) acquires equity in the industrial sector and in infrastructure projects; it has a say in the strategic orientation of the enterprises in which it holds equity. The Aga Khan Fund for Economic Development (AKFED), with which DEG has cooperated for over 20 years on various projects, is IPSK's majority shareholder. IPSK is planning to enlarge its equity portfolio in Kenya and expand into Tanzania and Uganda. DEG participated in providing the increase in capital required. Through its seat on the board of directors it plays an active role in determining IPSK's business policy and evaluating and selecting projects. IPSK is making an important contribution to African enterprises that would otherwise not have had access to investment capital.
