—IFC Vice President Jemal ud-din Kassum
Signs $40 Million Loan Agreement in Buenos Aires—
BUENOS AIRES, Apr. 13—IFC Vice President for Operations, Jemal-ud-din
Kassum, signed a $40 million loan agreement with Guipeba, an Argentine
oilseed crushing company, in Buenos Aires today. For Guipeba, the agreement
was signed by the Director President, Mr. Vilmar de Oliveira Schurmann
and the President, Mr. Ivo Hering. IFC’s investment consists of a $15
million A loan, a $20 million B loan and a $5 million C loan (with an income
IFC’s investment will assist Guipeba with its expansion plans and improve
its international competitiveness at a time when the Argentine oilseed
industry is growing rapidly. The investment program includes modernization
of the oilseed crushing plant and construction of a bottling facility,
construction of a soybean processing plant and expansion of oilseed storage
capacity. It will allow the company to capitalize on Argentina’s efficiency
as a producer of oilseed meal and oil in view of expanding worldwide demand
for these commodities.
IFC’s support for Guipeba reflects the Corporation’s objectives in Argentina
of promoting investment in the provinces and in small and medium-sized
companies. Guipeba is active in the northwestern provinces of Tucuman and
Salta, where such investments are helping the economic restructuring of
poorer, rural communities. The project will provide valuable services to
the farming community and further promote agricultural production in the
northwest. The agribusiness sector also generates significant export earnings
for Argentina. IFC’s support will further increase the efficiency of the
Argentine oilseed complex, adding to the country’s international competitiveness.
Guipeba is a wholly-owned Argentine subsidiary of Ceval Alimentos S.A.,
a Brazilian food and agribusiness company and repeat client of IFC, with
operations in the soybean crushing, oil refining and meat processing sectors.
IFC Vice President Kassum’s signing of the agreement with Guipeba took
place during a visit to Argentina and Brazil, reflecting his new assignment
as Vice President with global responsibility for all new investments undertaken
by IFC. Brazil and Argentina are, respectively, the largest recipients
of IFC investment in the Corporation’s history. Mr. Kassum met with a
wide range of private sector and government representatives in both countries
and also visited the less developed, northeast region of Brazil.
IFC is the private sector arm of the World Bank Group and the largest multilateral
source of financing for private sector projects in developing countries.