Industria Cerámica Centroamericana S.A.
On December 29, 2014, MIGA issued guarantees of $11.0 million covering an investment by OC International Holdings Inc. of Barbados in Industria Cerámica Centroamericana S.A. in Nicaragua. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves the acquisition of a majority share of Industria Cerámica Centroamericana S.A. by OC International Holdings of Barbados, a majority owned subsidiary of Organización Corona S.A., a large ceramics manufacturer incorporated in Colombia. The investor plans to modernize and expand the facilities following the acquisition.
The project will help meet the growing demand for sanitary ware products (e.g., toilets, sinks) in Nicaragua. It is also expected to improve sanitation conditions in rural areas by providing innovative, affordable sanitary units.
The project will involve the transfer of a set of technologies that will improve production processes, increase the plant’s competitiveness, and introduce product innovations in the market. It will benefit from continuous managerial, technical, logistical, and marketing support from the Corona Group, an important sanitary ware manufacturer in the Americas. The project is expected to employ more than 200 local staff.
The project is aligned with the World Bank Group’s Country Partnership Strategy for Nicaragua, which aims to raise incomes by increasing productivity – including the expansion of domestic markets.
MIGA’s participation in the project is also aligned with the Agency’s commitment to supporting investments into countries eligible for concessional lending from the International Development Association.