Press Releases

IFC Provides Partial Credit Guarantee to Peruvian Corporate Drokasa

In Washington DC:
Adriana Gomez

Telephone: +(202) 458 5204


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 ( 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.