Washington, D.C., August 31, 2005— The
International Finance Corporation, the private sector arm of the World
Bank Group, will provide up to $150 million to Brazil’s Ipiranga Petroquimica
S.A., one of leading producers of polyolefins in Latin America. IFC’s
nine-year financing will support the company’s corporate initiatives,
including process improvements and debottlenecking of operations. The
financing consists of a $50 million loan for IFC’s own account and a syndicated
loan of up to $100 million.
“This transaction fits well with IFC’s strategy to support export-oriented
and growth-generating companies in Brazil. We expect this long-term financing
will strengthen Ipiranga Petroquimica’s leading role in its sector. We
look forward to continuing to work with companies that share IFC’s vision
for excellence and sustainability,” said Atul Mehta, IFC’s Country Manager
Rashad Kaldany, IFC’s Director for Oil, Gas, Mining, and Chemicals, noted,
“IFC has played a significant role in developing Brazil’s petrochemical
industry, dating back to our financing of the country’s first petrochemical
project in the early 1970s. The sector is now in a second phase of
consolidation aimed at enhancing its global competitiveness. IFC’s strategy
is to support this industry by assisting key players like Ipiranga Petroquimica,
as they strengthen their balance sheets, modernize operations, and improve
their sustainability policies and practices.”
Paulo Magalhaes, CEO of Ipiranga Petroquimica, said, “IFC has been involved
with Ipiranga since our startup in 1980—and it has supported us through
both good and bad times. We value our long-term partnership, and
IFC’s support is helping broaden our sources of capital and strengthen
At the end of fiscal 2004 (June 30, 2004), IFC's portfolio in Brazil was
$1.48 billion, including $410 million from banks participating in syndications.
IFC’s strategy aims to enhance the prospects for competitiveness and growth
in Brazil and to improve the country’s social equity through voluntary
actions by the private sector.
IFC is supporting growth-generating firms with a wide network of stakeholders
and export-enhancing sectors such as infrastructure and logistics, as well
as improving access to long-term financing. IFC is also contributing
to a growing momentum for socially responsibility in Brazil’s private
sector. This includes supporting firms committed to environmental
and social sustainability, helping improve corporate governance, and facilitating
microfinance and socially-oriented entrepreneurship.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.