Washington D.C., December 3, 2004 —
The International Finance Corporation, the private sector arm of the World
Bank Group, will provide a partial credit guarantee of up to US$7.5 million
to enhance a US$25 million securitized bond issue in Peru for Corporación
Drokasa S.A. in which Interbank Group is participating as Structuring Agent.
Drokasa Group (CDK) is mainly engaged in the manufacture, marketing
and sales of pharmaceutical products as well as in the production and export
of asparagus and table grapes.
Peter Woicke, Executive Vice President of IFC said, “IFC’s partial guarantee
is part of a broader strategy to help develop domestic capital markets
and to expand financing options available to local corporations in Peru
and Latin America. In this case, IFC will support the first bond issued
by a diversified Corporation with exposure in three different sectors,
such as pharmaceuticals, distribution and agribusiness. This guarantee
facility will provide investors with an alternative high-quality long-term
asset to diversify their portfolios, and demonstrate to other local companies
a viable means of raising financing.”
Peru’s capital markets are currently characterized by concentrated portfolios
of institutional investors due to lack of issuers with sufficiently high
ratings. In addition, investors do not have the possibility to diversify
their holdings with alternative sectors because of lower ratings and a
perceived higher risk. Institutional investors’ basic rating requirements
are local A or better. IFC's credit enhancement along with a trust mechanism
or will raise the credit rating of the bond issuance to AAA.
Hory Chlimper, Corporación Drokasa’s President noted, “With this issue
our companies will gain access to the capital market and a wider investor
base as a new source of financing for their development plans. The proceeds
will finance maintenance and other capital expenditures, which will ensure
the continued high efficiency of operations and set the basis for future
growth, and refinance CDK’s outstanding short-term and long-term debt.
CDK has been a key player in the Peruvian pharmaceutical industry since
1952 and more recently -since 1995- in the local agribusiness activity,
where it has enhanced the Peruvian asparagus exports and promoted the development
of table grapes as a new export crop. CDK’s farms are located in Ica,
where employs an average of 2,850 people. Its distribution centers and
a pharmaceutical manufacturing plant are in Lima, where provide work for
more than 1050 people.
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.
IFC’s current portfolio in Peru is US$335 million. From its founding in
1956, 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 end of FY04 was $17.9 billion
for its own account and $5.5 billion held for participants in loan syndications.