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
“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
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.
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
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.