Oct 2014 Financial News

New investment link for region’s SMEs

Oct 07, 2014

The Inter American Investment Corporation (IIC) will tomorrow launch an online platform that connects Latin American and Caribbean companies seeking financing with local and international investors.

The IIC, a member of the Inter-American Development Bank (IDB) group, said in a statement yesterday that from T&T it will launch InvestAmericas which it described as “an innovative online platform that connects Latin American and Caribbean companies seeking financing from local and international investors.”

Difficulties in accessing financing limit the growth of many companies and the region as a whole, the IIC said. The funding gap for small and medium-sized enterprises (SMEs) in Latin America and the Caribbean is estimated to be between US$125 and US$155 billion.

“InvestAmericas will use a collaborative community to stimulate business opportunities requiring financing. The first phase will be implemented in Colombia, Costa Rica, Trinidad and Tobago, and Uruguay. In 2015, the initiative will be expanded to cover the whole region,” the IIC said.

In addition to promoting access to financing, InvestAmericas will reduce pre-investment due diligence costs. The platform will incorporate service providers that will offer strategic, operational, or technical support during these processes. Business support organizations, such as chambers of commerce or accelerators, will also be represented in InvestAmericas where they will help generate potential business offerings, the IIC said.

“We want InvestAmericas to be the starting point for business, where the region’s companies, including those from T&T, are able to obtain financing, and investors (are able to) gain access to more interesting business opportunities. The platform will be a meeting point to stimulate the development of (the) countries and the region,” said Gregory Da Re, IIC strategy and innovation division chief.

This new platform reflects the IDB group’s commitment to innovation and new technologies, the statement said. InvestAmericas is part of ConnectAmericas (connectamericas.com), the first social network for businesses dedicated to helping Latin American and Caribbean SMEs grow and expand on an international level. ConnectAmericas offers three main pillars of service: Connect, Learn, and Finance. InvestAmericas is part of the ConnectAmericas’ financing pillar.

The IIC, promotes private-sector development in Latin America and the Caribbean with a focus on SMEs.

“We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products,” the agency said.

In 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through financing and syndication agreements.

Source:
Aleem Khan
Trinidad Guardian, A16
Tuesday October 7, 2014