WASHINGTON, D.C., September 28, 1999 - The
International Finance Corporation and Darby Overseas Investments today
signed agreements to invest in Concesiones y Construcciones de Infraestructura
S.A. (CCI), an Argentine toll road operator and construction company. IFC
will invest up to $40 million and Darby will invest up to $20 million in
equity and quasi-equity to help CCI expand its activities in Latin America.
This is the first investment being made by Darby's new Darby Latin American
Mezzanine Fund (DLAMF).
The investments will provide CCI with the long-term financing needed to
expand its activities in the management, operation, and construction of
private toll road concessions in the region. It will support CCI's expansion
plans, including investments of over $200 million, which mainly focus on
private toll road concessions in Latin America and have total project costs
of up to $1.8 billion. The investments will also support CCI's plan to
list its shares.
"Our investment in CCI is an example of IFC's support for medium-sized
companies in the region, helping their expansion into neighboring countries
and enabling the transfer of know-how and experience in infrastructure,"
said Declan Duff, IFC Director of the Telecommunications, Transportation
and Utilities Department.
Nicholas Brady, Chairman and Chief Executive Officer of Darby, said, "I
am delighted that we are joining with IFC in this investment in CCI. This
is the first investment by our new mezzanine finance fund and it will not
only benefit Argentina, but assist CCI with its broader regional objectives."
Darby is a private emerging markets investment firm. Headquartered in Washington,
D.C., the firm was founded by Nicholas F. Brady, former Secretary of the
U.S. Treasury. It invests in companies in Latin America through its private
equity fund, and in a wide array of other equity and fixed income assets.
Darby's investors are institutions and high net worth individuals.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.