Washington, D.C. /Buenos Aires, July
30, 2015—IFC, a member of the World Bank Group, today signed a $520
million financing agreement with Pan American Energy to help the company
develop its oil and gas resources to help meet Argentina’s growing energy
The financing package consists $120 million for IFC’s own account and
$400 million raised by IFC from commercial banks and financial institutions
including: ICBC, Banco Itau BBA, Natixis, Credit Agricole, Banco Santander,
Banco Bilbao Vizcaya Argentaria, and Banco Latinoamericano de Comercio
Exterior. IFC’s loans extend to seven years, a long loan maturity in Argentina’s
Pan American Energy has been an IFC client for over 20 years and is the
second-largest oil and gas producer in Argentina, contributing with 17%
of the country’s hydrocarbon production. The company is also a major
employer in southern Argentina and is a strong sponsor of local businesses.
The IFC financing will be used for the company’s $1.5 billion expansion
program in the Cerro Dragon block in Golfo San Jorge and the Lindero Atravesado
block in Neuquen. IFC is also working with the company to strengthen
its environmental and social management.
“With this financing, we look forward to continuing our long-term relationship
with Pan American Energy, a company that is helping to meet Argentina’s
growing energy demands and shares our commitment to also helping local
communities benefit from oil and gas operations,” said Lance Crist, IFC’s
Global Head for Oil, Gas and Mining. “We are pleased with the success
in raising $400 million in long term funding from international banks,
which is a reflection of Pan American's strong profile in the market.”
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
About Pan American Energy
Pan American Energy is a regional hydrocarbons exploration and production,
with activities in Argentina, Bolivia, and Chile. In the last decade, Pan
American Energy has established itself as the second-largest oil and natural
gas producer in Argentina. The company is one of few in the country to
have consistently increased its oil and gas production in recent years.
Since 2001, PAE invested over $11 billion in Argentina and increased its
oil and gas production by 28 percent and 55 percent respectively.