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
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million project will install new operating capacity and replace outdated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.