México City, July 12, 2006-The International
Finance Corporation, the private sector arm of the World Bank Group, signed
today an agreement to provide a credit line to Volaris, a high-efficiency
airline that began its operations in March this year.
This operation is a milestone in the history of Mexico’s aviation industry,
since it is IFC’s first financing to an airline in the country.
The credit line consists of a $30 million revolving credit facility for
predelivery payments toward the purchase of Airbus A-320 family aircraft,
and an additional $10 million as working capital loan.
The event was hosted by Pedro Aspe, President of the Board of Directors
at Volaris. The company’s Chief Executive Officer, Enrique Beltranena,
was also present, as well as Francisco A. Tourreilles, Director of IFC’s
Infrastructure Department, and Paolo Martelli, IFC’s Manager in Mexico.
Tourreilles said, “IFC’s financing to Volaris fits with our strategy
in Mexico of supporting the development of regional infrastructure as a
means to stimulate economic growth." He pointed out that Volaris “is
providing a great contribution to the development of its industry in Mexico
by offering an affordable and reliable alternative for air passengers."
During the event, Tourreilles also note some Latin American airlines that
have recently received support from IFC, including TACA in El Salvador,
TAM and GOL in Brazil, Lan in Chile, and Copa in Panama.
Volaris’s CEO, Enrique Beltranena, said, “The trust placed
in this project, although is just starting, boosts the goals that Volaris
has set, by bringing us support from such an organization as
important as IFC.”
IFC in Mexico
Since 1956, IFC has invested $5.6 billion, including $2.2 billion in syndications,
in Mexico, in sectors ranging from infrastructure and manufacturing to
agribusiness and the financial sector, making the country the third-largest
recipient of IFC financing in dollar value, after Brazil and Argentina.
IFC committed $279.8 million in FY05 as new financing in Mexico, and it
held a total portfolio of $1.6 billion in the country, including syndications,
as of May 2006.
IFC's strategy for Mexico focuses on enhancing the international competitiveness
of the Mexican private sector, especially by further deepening the financial
sector, promoting investments where the private sector can play a larger
role, and promoting sustainable social and environmental development and
good corporate governance.
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition 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 FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.
Volaris is an airline with a solid financial background and a strong business
plan, and it is devoted to offering excellent service. With its philosophy
of providing safe, efficient, and cost-effective service to its passengers,
Volaris is playing a significant role in promoting passenger air transportation
within Mexico. For more information, visit www.volaris.com.mx.