Press Releases

IFC Provides $250 Million to Argentine Oil and Gas Producer Pan American Energy

In Washington:
Adriana Gomez

Phone: +1(202) 458 5204


Hannfried von Hindenburg

Phone: +1(202) 458 5613


Washington D.C., July 13, 2005 -- The International Finance Corporation, the private sector arm of the World Bank Group, has signed a $250 million loan for Pan American Energy LLC, Argentine Branch, a branch of Pan American Energy LLC.  A joint venture company between BP plc and Bridas Corporation, Pan American is the second-largest oil and gas producer in Argentina, accounting for about 13 percent of the country’s output.  

The loan will finance part of the Argentine Branch’s 2005 capital expenditure program, which is primarily focused on its operations in the Golfo San Jorge basin in southern Argentina.  

IFC’s $250 million loan package comprises a $115 million loan for IFC’s own account and a $135 million loan for the account of commercial banks.  Commercial bank participation was closed with an oversubscription.  The seven-year tenor of the IFC syndicated loan is the longest tenor raised for an Argentine borrower since the country’s economic crisis in 2001.

Rashad Kaldany, IFC’s Director for Oil, Gas, Mining, and Chemicals, said, “IFC’s financing will support a company that is recognized as a good corporate citizen.  Pan American Energy has a strong development impact in the regions in which it operates, through high levels of employment, contributions to fiscal revenues, and development of local industries and small and medium enterprises.  In addition, its substantial gas production and strategically located gas reserves provide a clean source of fuel and help alleviate the current supply shortage in Argentina”

Atul Mehta, IFC’s Director for Latin America and the Caribbean, noted, “IFC is pleased to continue supporting Argentina’s successful export-oriented companies, which have played an important role in the recovery of the country’s economy.” He added, “This operation complements IFC’s regional strategy to act as a catalyst for investment in Argentina by helping to mobilize long-term financing from the international commercial markets.”

Richard Spies, CEO of Pan American Energy, said, “We are delighted to have built on our long-standing relationship with IFC, in a transaction that is aligned with our company’s long-term development programs.  We believe that IFC’s interest in environmental and social sustainability will only help us improve on a strong, industry-leading performance.”

Rodolfo Berisso, Pan American Energy’s Vice President of Finance and Planning, added, “With IFC’s presence, we have been able to set a new benchmark for Argentine companies in long-term financing from international commercial banks. IFC conducted the entire process in a very efficient manner that allowed completion within the agreed timeline.”

The mission of IFC ( 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. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.