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.