Press Releases
print

IFC PROVIDES US$47 MILLION IN FINANCING FOR BRAZIL'S AUTOMOTIVE INDUSTRY


Jannette Esguerra
Phone:(202) 458-5204
Fax:(202) 974-4384
E-mail:jesguerra@ifc.org


WASHINGTON, D.C., December 2, 1998 --- The International Finance Corporation is providing US$47 million in financing to Industrias Arteb S.A., a Brazilian manufacturer of automotive lighting components.
Arteb produces head and tail lamps and other lighting components for automakers in Brazil and Argentina, both for the local and export markets. The $118 million project will install new operating capacity and replace outdated technology in Arteb's existing plant in Sao Paulo. Project financing will also enhance the company's financial structure and pay for the construction of two new plants in Gravatai, Argentina.
Mr. Karl Voltaire, Director of IFC's Latin America and the Caribbean Department, noted that IFC's investment would support the modernization of a company with high growth potential. It would also increase efficiency and competitiveness in the automotive industry, an important sector in Brazil.
The financing package includes a loan of $20 million for IFC's own account and a loan of $20 million for the account of participants. The participant banks involved in the transaction are The Bank of Nova Scotia, Comerica Bank, and Banque Sudameris. IFC is also making an equity investment of $7 million for a 7.8 percent stake in Arteb.
IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.