Washington D.C., July 1, , 2003—The
International Finance Corporation (IFC), the private sector arm of
the World Bank Group, has signed a US$75 million loan as part of a US$216
million refinancing and debt reduction package for Monterrey based Copamex
S.A. de C.V. The debt refinancing will position the
manufacturer for future growth and help secure almost 7,000 jobs. Copamex
is one of the leading producers and distributors of paper-based consumer
products and value-added industrial paper products in Mexico, Nicaragua
and Costa Rica.
The IFC financing of US$75 million consists of an eight-year, US$50 million
IFC senior loan and a US$25 million quasi equity investment. In
addition, IFC will assist Copamex in refinancing US$141 million of its
existing debt which will be executed by mobilizing an IFC B
loan of up to US$60 million and a Parallel Loan from local lenders
for the remainder US$81 million equivalent. IFC will also provide
Copamex with a swap of the dollar denominated loans into Mexican Pesos.
The financing package is part of Copamex’s debt reduction and refinancing
strategy which will strengthen its financial structure by extending the
maturity of its loans and reducing its foreign exchange exposure. A
small portion of the financing will assist Copamex with its ongoing modernization
program necessary to keep the company in a strong competitive position.
"This restructuring of Copamex’s financial foundation will enable
the company to continue operating and prosper during a period when solid
Mexican companies are experiencing reduced access to the capital markets.
It is a good example of IFC‘s counter-cyclical role in providing
long term finance and advice, while keeping commercial banks engaged in
the emerging markets,” said Bernard Pasquier, Director of IFC's Latin
America and Caribbean Department.
IFC's mission 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, IFC has committed more than
$34 billion of its own funds and arranged $21 billion in syndications for
2,825 companies in 140 developing countries. IFC's committed portfolio
at the end of FY02 was $15.1 billion with an additional $6.5 billion held
for participants in loan syndications.