Arrinsa Leasing S.A.

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MIGA has issued a $3.15 million guarantee to Corporaciόn Interfin S.A. of Costa Rica for its $4 million equity investment in Arrinsa Leasing S.A. of El Salvador. The guarantee provides a standardized package of coverage against the noncommercial risks of transfer restriction, expropriation, and war and civil disturbance, for a period up to 10 years. The guarantee was issued under MIGA's new Small Investment Program. The project will allow Corporaciόn Interfin, the new owner of Arrinsa, to expand the company's leasing portfolio to include a wide range of assets such as tractors, commercial real estate, and telecommunications equipment and facilities. Interfin's established track record as a banking, asset management and brokerage firm throughout Central America will bring needed expertise, sophisticated financial management, and a broader reach for Arrinsa. This will help position Arrinsa to better serve its target market of small and medium-size enterprises that might not have the cash or the credit history to purchase equipment outright. The company's offices and equipment depots are scattered throughout the country, allowing increased access for customers—many of them small industrial contractors or farmers—who live outside the major metropolitan areas. This project is expected to enhance prospects for smaller companies that have limited access to financing, enabling them to participate in and contribute to the economy. Other project benefits include the introduction of modern farming equipment to improve agricultural yields and the expansion of the transportation services sector with the financing of trucks, taxis, and buses. MIGA's involvement in the project is consistent with the Country Assistance Strategy for El Salvador and addresses several MIGA priorities: supporting south-south investments, as well as investment in SMEs and in projects that improve access to finance for SMEs.

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