Washington D.C., December 20, 2007
— IFC, a member of the World Bank
Group, today signed an agreement with Argentina’s Arcor Group to
provide financing that will support the company’s debt refinancing and
investment plans as well as job creation in Argentina.
Arcor is one of Latin America’s leading food companies and a key driver
of economic activity in the diverse communities surrounding its geographically
spread operations. This $130 million investment marks IFC’s second direct
financing to Arcor since the Argentine financial crisis. . Banco
Itaú, Banco Santander, BNP Paribas, Calyon, Rabobank, and West LB have
joined as lead arrangers.
Oscar Chemerinski, IFC Director for Agribusiness, said, “IFC is pleased
to help a successful export-oriented company with a strong focus on environmental
and social sustainability, which is expanding into neighboring countries,
creating employment in Argentina and other Latin American countries.”
Luis Pagani, President of Arcor Group said: “We are very grateful for
IFC’s support, which will no doubt significantly help optimize the financing
structure of our company. This in turn will advance Grupo Arcor’s
Yolande Duhem, IFC Senior Manager for the Southern Cone, said, “The investment
reflects our strategy to support the agroindustrial sector by helping a
leading Argentine company expand its operations. In turn, this will have
a positive impact in terms of growth for the company’s supplier network
and the communities where it operates.”
IFC has a long-standing relationship with Arcor, beginning about 20 years
ago with the extension of two loans in 1986 and 1990 totaling $22 million.
In December 2005, IFC financed $280 million to refinance Arcor’s
maturing long-term debt and to support its expansion plans.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
Arcor Group is the world’s leading candy manufacturer and the main sugar
confectionery exporter for Argentina, Brazil, Chile, and Peru. The company
has 41 plants, 30 in Argentina and the remainder in other Latin American
countries. It produces sugar confectionery, cookies, crackers, chocolate
confectionery, ice creams, and other foods. It reaches 120 countries on
five continents with products under its own brand.