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PANGUE PREPAYS IFC


Mark Constantine
Phone: (202) 473-9331
Fax: (202) 974-4384
E-mail: MConstantine@ifc.org


WASHINGTON, D.C., March 11— IFC today announced that Empresa Electrica Pangue S.A. has unilaterally exercised its prerogative to prepay $150 million in loans outstanding to IFC and participant banks. Pangue S.A. today informed IFC that they had successfully refinanced the loans at a cost substantially below the terms previously agreed with IFC. IFC’s 2.5% equity stake in Pangue S.A. remains unaffected by this action.

Pangue S.A., a subsidiary of Endesa, constructed and now operates a 450 MW hydro-electric plant on the Bio-Bio River in Chile. IFC’s Board originally approved an investment in Pangue S.A. in December 1992.


An IFC delegation traveled to Chile this week, prior to Pangue S.A.’s prepayment today, as part of its ongoing effort to ensure compliance with the environmental and social measures previously agreed among IFC, Pangue S.A. and Endesa. IFC is continuing its best efforts to seek a satisfactory resolution of outstanding environmental and social issues.


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