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IFC Invests $30 Million in Andrade Gutierrez Concessões S.A.


In Washington, D.C.:
Karina Manasseh

Phone: +1 (202) 473-1729

Email:
kmanasseh@ifc.org


Washington, D.C., February 10, 2006 The International Finance Corporation, the private sector arm of the World Bank Group, and Andrade Gutierrez Concessões S.A. have announced that IFC has increased its equity participation in AGC to 13.57 percent.

IFC has invested a total of $30 million in AGC under an agreement signed in November 2001 to support the company’s investments in infrastructure. The process has been completed in four stages: an equity subscription of $4.3 million in April 2002; an equity subscription of $9.8 million in October 2003; an equity subscription of $15 million in November 2005 as a result of the conversion of the entire principal balance of IFC’s loan; and an equity subscription of $933,170 in January 2006.

Andrade Gutierrez Concessões S.A. is the infrastructure concession arm of Andrade Gutierrez S.A., one of Brazil’s premier industrial groups.  IFC’s funding has supported two of AGC’s most recent infrastructure investments, including the Waterport project in São Paulo state, involving a concession to build, operate, and maintain water and sewage systems to deliver potable water at the port of Santos; and the Quiport project in Quito, Ecuador, encompassing the operation and maintenance of the existing airport and the construction, operation, and maintenance of Quito’s new international airport.

“We are very pleased to be partnering with Andrade Gutierrez in this venture. IFC’s further investment in Andrade Gutierrez Concessões will continue our support for expansion of the company’s activities in Brazil’s infrastructure sector, an area to which the company has been strongly committed for many years,” said Francisco A. Tourreilles, Director of IFC’s Infrastructure Department.

Mr. Ricardo Sena, President of Andrade Gutierrez Concessões, said, “IFC’s participation in AGC’s equity has been a valuable contribution to the company, both in terms of institutional strengthening and financial support for our growth strategy. IFC’s strong support has been a decisive factor in allowing us to expand our infrastructure investments in Latin America, amplifying our company’s growth possibilities.”

Atul Mehta, IFC’s Director for Latin America and Caribbean, emphasized IFC’s strategy in Brazil and the importance of fostering development for companies that are investing in other developing countries. “This financing fits the Corporation’s strategy in Brazil, which emphasizes encouraging private sector investment in infrastructure as a means to stimulate economic growth,” he said.

About IFC


The International Finance Corporation, the private sector arm of the World Bank Group, promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies.

From its founding in 1956 through fiscal year 2005, IFC has committed more than US$49 billion of its own funds and arranged US$24 billion in syndications for 3,319 companies in 140 developing countries.  IFC’s worldwide committed portfolio as of the end of fiscal year 2005 was US$19.3 billion for its own account and $5.3 billion held for participants in loan syndications.  For more information, visit
www.ifc.org.

IFC in Brazil


During fiscal year 2005, Brazil received the largest amount of IFC financing, in U.S. dollar value, among Latin American countries. IFC made investments of $591million, including $190 million in syndications, in sectors ranging from agribusiness and transportation to manufacturing and the financial sector.  IFC’s total portfolio in Brazil was $913 million as of June 30, 2005.

IFC’s strategy for Brazil focuses on enhancing clients’ prospects for competitiveness and growth, improving the country's social equity through voluntary actions by the private sector, and continuing to promote sustainability.

These priorities entail investing in growing, export-oriented companies; helping Brazilian companies expand internationally (including through “South-South” investments); emphasizing infrastructure and logistics, notably public-private partnerships that expand services to poorer people; and helping build financial and capital markets. IFC also seeks to finance firms committed to environmental and social sustainability, to help improve corporate governance, and to support microfinance and socially-oriented entrepreneurship. Since 1956, when Brazil joined IFC, the Corporation has provided $7.45 billion, including syndications, for 162 companies.

About Andrade Gutierrez Concessões


Andrade Gutierrez Concessões S.A., founded in December 1999, brings state-of-the-art management to its toll roads, water and sanitation, and airport concessions, while studying and developing new opportunities in the infrastructure sectors with an aim to improve its concession portfolio.  Andrade Gutierrez S.A. is one of the largest private sector conglomerates in Latin America and one of Brazil’s leading service exporters.  Andrade Gutierrez is a diversified group operating in Latin America, including Argentina, the Dominican Republic, Ecuador, Mexico, Panama, and Peru; in Europe, including Greece, Portugal, and Spain; in Africa, including Angola and Mauritania; and in the Middle East, in the United Arab Emirates.  The Andrade Gutierrez group’s three main business areas include engineering and construction, public service concessions, and telecommunications.