[China Co-financing Fund] IDB Invest approves loan from CHC for Fitesa expansion in Mexico (link to project ID #85016)

On June 6, 2017, a loan of US$64,750,000 was approved by the Inter-American Investment Corporation (now IDB Invest, the private sector arm of the Inter-American Development Bank Group) to Fitesa S.A. This loan was comprised of two sources of funding: US$20,000,000 from the China Co-financing Fund for Latin America and the Caribbean and US$44,750,000 from the IDB Group's own resources. The loan had an 8 year maturity period with an up-to 2 year grace period. However, IDB Invest does not provide a date on which the loan contract was signed, and lists the project status as closed. The loan was divided into two tranches: a US$27,030,000 loan to Fitesanonwovens Mexico S.A. de C.V., the Fitesa subsidiary in Mexico (captured in this project) and US$37,720,000 to Fitesa Naotecidos S.A., the Fitesa subsidiary in Brazil (captured in project #85016). It is unclear what proportion of the 20 million USD from the China Co-Financing Fund was slated for Fitesanonwovens Mexico. The loan to Fitesanonwovens Mexico was intended to help finance the installation and operation of a new production line for non-woven textiles in a plant in San José Iturbide, Guanajuato. The new line is expected to produce 20,000 tons per year. It builds off of a pre-existing production plant that had previously installed a spunmelt line, though confirmation that this new line was completed has not been found. Non-woven textiles are primarily used for hygiene and medical products. IDB Invest notes the loan will also fund studies about and, pending study results, the installation of, solar panels at the Cosmópolis and/or San José de Iturbide plants. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella project ID #86526.

Additional details

Transaction amount has not been included since breakdown of funds is unknown. Project status set to "pledge" because, while the loan was approved by the IDB, there is no "signed" date.

Number of official sources

1

Number of total sources

2