IDB Invest and Grupo HZ Boost Sustainable Packaging Production in Argentina

WASHINGTON - IDB Invest will provide financing of up to $60 million to Interpack S.A., a company of Grupo HZ, to support the development of a new corrugated cardboard packaging manufacturing plant in Pilar, Buenos Aires Province, Argentina.

The project will expand local production capacity for high-value-added sustainable packaging made primarily from recycled materials and help meet growing demand from strategic sectors such as export industries and e-commerce.

The investment will strengthen Argentina's industrial sector by increasing production capacity for corrugated cardboard packaging, a key input for industry, particularly the food sector. The project is aligned with the IDB Group Country Strategy for Argentina and its objectives of promoting international trade, productive modernization, and innovation.

The construction and subsequent operation of the new plant will stimulate economic activity, strengthen ties with local suppliers, and create formal employment opportunities.

The IDB Invest financing consists of a senior loan of up to $60 million, including a committed tranche of up to $40 million and an additional tranche of up to $20 million for future investments. The operation also contemplates the mobilization of third-party resources through a B loan of up to $20 million. The proceeds will be used primarily for the construction of the plant, the acquisition and installation of specialized machinery, and other strategic investments associated with the project.

In addition to financing, IDB Invest will work with Grupo HZ to strengthen its sustainability and corporate governance standards. The operation includes the implementation of action plans aimed at enhancing environmental and social management practices, as well as improvements in transparency, corporate governance, and risk management.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients across a variety of industries. Visit our website: https://www.idbinvest.org/en.

About Grupo HZ

With 75 years of experience in the graphic arts industry and a regional presence, Grupo HZ is composed of leading packaging companies in Argentina, Chile, and Brazil. The group also diversifies its operations through agricultural, forestry, and real estate businesses. Grupo HZ companies promote a sustainable production strategy focused on local development and innovation.