Washington, D.C., May 16, 2003—The International
Finance Corporation, the private sector arm of the World Bank Group, has
rescheduled $27.5 million in IFC's outstanding loans provided to Compañías
Asociadas Petroleras S.A. (CAPSA), Argentina. The rescheduling of
IFC's loans includes A and C loans for IFC's own account and a B-loan for
the account of participating banks, and is part of the overall rescheduling
of the company's outstanding debt of $94.7 million equivalent.
CAPSA is one of the small independent oil and gas producers that has been
affected by the recent turmoil in Argentina. The company operates
the Diadema and KM20 oil fields in the Comodora Rivadavia region of Argentina's
southern Chubut province. The expansion of the company’s secondary
recovery program will increase oil production in the Diadema field to approximately
10,000 bpd. It was funded on a project finance basis with long term debt
secured in part by IFC and a syndicate of participating banks in IFC's
B-loan program. The rescheduling of CAPSA's debt helps the company to withstand
the current difficult environment in Argentina.
Mr. Rashad Kaldany, IFC director for oil, gas, mining, and chemicals said,
"The successful closure of this debt rescheduling was largely due
to the confidence of the lenders in the long-term viability of the company.
The transaction will have an important demonstration effect for other Argentine
projects, many of which have strong business prospects but are constrained
by liquidity problems."
Ms. Suellen Lazarus, IFC director for syndications, added, "We are
delighted that the banks in the IFC B-loan were unanimous in their support
for this rescheduling. The transaction will contribute to business
confidence in Argentina, especially on the part of foreign investors."
IFC's mission (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $34 billion of
its own funds and arranged $21 billion in syndications for 2,825 companies
in 140 developing countries. IFC’s committed portfolio at the end of FY02
was $15.1 billion.