Press Releases
print

IFC TO HELP FINANCE TWO NEW PETROCHEMICAL PLANTS IN MEXICO


Sujata Lamba, ASimina Caminis


Washington, D.C., Oct. 28 -- The International Finance Corporation (IFC) is providing a US$57.5 million syndicated loan and a US$8 million equity investment to Grupo IDESA, S.A. de C.V., a Mexican petrochemicals company, to help finance the construction of two state-of-the-art plants at an estimated cost of US$108 million. One of the plants will produce 200,000 tons per year of ethylene glycol, a chemical used in the manufacture of polyester fibers and PET resins for packaging applications. The other plant will produce 20,000 tons yearly of ethanolamines, which are used in the manufacture of liquid detergents, textiles, cosmetics, and gas purifiers. According to IFC officials, environmental considerations weighed heavily in Grupo IDESA's decision to locate its new plants in an industrial park at Morales, in Veracruz, next to the petrochemical complex of Petroleos Mexicanos, which will supply them with basic raw materials. This arrangement will eliminate the need to transport hazardous chemicals such as ethyle
ne oxide long distances over land. The design of both plants conforms with Mexico's more stringent environmental standards as well as the World Bank's environmental guidelines. Of IFC's total loan, US$42.5 million has been placed with participating commercial banks as follows: the lead manager, Dresdner Bank Luxembourg; and managers, Swiss Bank Corporation; ASLK-Bank NV/CGER-Banque SA; Banque et Caisse d'Epargne de l'Etat Luxembourg; Banque Nationale de Paris; Creditanstalt-Bankverein; and Kredietbank NV. IFC has approached DEG (the German Finance Company for Investments in Developing Countries) to finance an additional US$7.5 million as a separate loan. DEG is expected to approve this transaction soon. Grupo IDESA, a medium-sized, private, largely Mexican owned company, is one of Mexico's largest exporters of chemicals. IFC is helping medium-sized companies such as Grupo IDESA adapt to a more competitive business environment in the petrochemicals sector, a high-priority sector in Mexico. IFC, a member of the

World Bank Group, is the largest multilateral source of financing for private sector projects in the developing world.

Grupo IDESA