Reprinted from Caribbean Net News
caribbeannetnews.com

Multi-million IDB loan for Suriname's oldest company

Wednesday, February 14, 2007

by: Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: The Inter-American Development Bank and the Inter-American Investment Corporation announced Tuesday the approval of a multi-million dollars loan to Suriname's oldest company C. Kersten & Co. N.V. (Kersten). Kersten is the oldest trading company in the Western hemisphere, founded in 1768.

The Suriname company will receive US$11 million, while Sagicor Merchant Limited of Trinidad, DSBbank, Suriname’s largest commercial bank, Finabank and insurance company Assuria will contribute the remainder of the US$25 million financing package.

The IDB further disclosed that “CKC is undergoing a significant restructuring and expansion plan under new management and the project team has been impressed by the quality and vision of the new management team,” said Peter Stevenson, the project team co-leader at the IDB.

Sotero Arizu, the project team co-leader at the IIC, added, “The IDB group’s long-term facilities will greatly enhance the ability of the Kersten Group to achieve its long-term expansion objectives in a sustainable manner. We are very pleased with the excellent cooperation with local and regional financial institutions in putting this financing package together.”

The total package includes funds for refinancing, capital expenditures and working capital, with tenors of up to seven years.

Kersten is the first privately owned company in Suriname to secure a loan with the IDB group. The loan is one of the first granted after the expansion of the IDB’s lending program to include private companies in any economic sector.

With a total of 650 employees and 12 operating companies, Kersten is one of the larger holding companies in Suriname. The holding operates hotels, imports heavy mining and earth moving equipment and is currently developing a tourism resort.

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