MIGA Provides Investment Guarantees for Acquisition of Bathroom Ceramics Manufacturer in Nicaragua

MIGA Provides Investment Guarantees for Acquisition
of Bathroom Ceramics Manufacturer in Nicaragua
Investment will contribute to greater availability of sinks and toilets in the country 

Washington, January 26, 2015 – The Multilateral Investment Guarantee Agency (MIGA)—the political risk insurance and credit enhancement arm of the World Bank Group—announced today its support for the acquisition, expansion, and modernization of a bathroom ceramic ware plant in Managua, Nicaragua by Colombia-based ceramics manufacturer Corona. The investment will contribute to greater availability of sinks and toilets in the country, which faces large sanitation gaps—particularly in poor, rural areas.

MIGA is providing a guarantee of $11.0 million covering an equity investment in Industria Cerámica Centroamericana S.A. as well as a trademark license. The agency is covering the project against the risks of transfer restriction, expropriation, and war and civil disturbance. This represents the first time MIGA has covered a trademark license as a non-equity direct investment.

Increasing access to higher quality water and sanitation services is one of the pillars of Nicaragua’s National Plan for Human Development, as well as a focus of World Bank Group efforts in the country. While the bulk of the plant’s sales are destined to local markets, Industria Cerámica Centroamericana S.A. also exports to other countries in Central America.

The investment will benefit the country through the introduction of better equipment, energy efficiency, and know-how in the sector. The project employs more than 200 permanent employees and supports the local economy by the direct procurement of local goods.

“Accessible, affordable sanitation is critical to the health and well-being of all Central Americans,” said Keiko Honda, MIGA’s Executive Vice President and CEO. “We’re pleased to support this South-South investment in this sector that is a priority for the Nicaraguan government and the World Bank Group.”

__________________________

MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1818 H Street, NW, Washington, DC 20433

MIGA Contact:
Mallory Saleson, MIGA
Tel: +1 202 473-0844
E-mail: msaleson@worldbank.org

Rebecca Post, MIGA
Tel: +1 202-473-1964
E-mail: rpost@worldbank.org

Cara Santos Pianesi, MIGA
Tel: +1.202.458.2097
E-mail: csantospianesi@worldbank.org