WASHINGTON, D.C., Feb. 8 -- The International Finance Corporation (IFC)
has signed an agreement with Rhodiaco Industrias Quimicas Ltda. (Rhodiaco),
the only producer of purified terephthalic acid (PTA) in South America,
to finance an expansion and modernization of its facilities. The project
will double Rhodiaco's PTA production capacity, significantly reduce operating
costs and improve its environmental standards through new air emission
control systems and improved wastewater treatment. Expanded production
will help meet a rapidly growing demand for PTA, the key raw material in
the production of polyester fiber for the textile industry and PET resin
for the packaging industry. "The economic and social development of
the less-developed northeastern region of Brazil is a high priority for
IFC," said Jean-Philippe Halphen, Director of IFC's Chemicals, Petrochemicals
and Fertilizers Department. "Rhodiaco's expansion project will supply
PTA which is critical to the northeast's expanding textile industry."
IFC has arranged a financing package of US$60 million, consisting of a
loan of US$30 million for its own account and a syndicated loan of US$30
million for the account of commercial bank participants, which include
ABN Amro, BNP, ING Bank, Lloyds Bank and Societe Generale. Rhodiaco is
a joint venture between Rhodia-ster and Amoco do Brasil. IFC, a member
of the World Bank Group, is the leading multilateral source of equity and
loan financing for private sector projects in developing countries.
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