WASHINGTON, D.C., Dec. 10 -- The International
Finance Corporation (IFC) has approved a $15 million underwriting term
credit facility for Banco General de Negocios S.A. (BGN), a leading Argentine
bank based in Buenos Aires that will use the IFC financing to strengthen
its underwriting operations. The financing consists of a $12 million loan
to underwrite debt-related securities and a $3 million loan to underwrite
equity shares. The credit facility will further develop BGN's local underwriting
activities of U.S. dollar-denominated bonds, equity-linked instruments,
and equity shares of both middle-market and recently privatized enterprises.
It will offer private sector companies more flexibility to issue debt and
equity securities at reasonable cost to raise funds for investment and
increase competitiveness. As a viable funding alternative for enterprises
seeking maturities longer than those offered by traditional commercial
banking credits, it will help strengthen the Argentine bond market. In
addition, it wil
l increase the range of investment opportunities for both institutional
and individual investors. BGN's largest shareholders are the Rohm family.
Other major shareholders include affiliates of Credit Suisse, Chemical
Bank, Banca Nazionale del Lavoro, and Dresdner Bank. Helmut Paul, Director
of IFC's Latin America and Caribbean Department, said: "IFC's support
is critical to the development of an efficient and diversified securities
market in Argentina. This credit facility could also help in the future
development of the new private pension system by increasing the supply
of investable securities." IFC is the private sector arm of the World
Bank Group and the largest source of multilateral financing for private
sector projects in developing countries.
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