Washington, D.C., July 28 2011—IFC,
a member of the World Bank Group, and the IFC African Latin American and
Caribbean Fund are making a $48 million equity investment in Argentina’s
Medanito to support the company’s expansion plans to increase oil and
gas production, which will allow the country to decrease its dependence
on gas imports and increase government revenues.
IFC and the IFC ALAC Fund, managed by the IFC Asset Management Company,
will each invest $24 million. The equity financing package will be
used by Medanito to further develop its oil and gas reserves, expand its
processing and storage facilities, and carry out further exploration activities
in southwest Argentina.
“IFC has tailored financial and advisory products to meet our needs in
a timely fashion,” said Emilio Carosio, Medanito’s President. “We
consider IFC a key partner and look forward to drawing from their global
knowledge and support as we continue to expand in Argentina.”
In addition to financing, IFC has been advising Medanito on enhancing its
corporate governance and environmental and social standards in preparation
for a planned initial public offering.
“Our investment in Medanito builds on our strategy to support responsible
firms that are helping unlock Latin America’s oil and gas potential and
providing benefits to national governments as well as local communities,”
said Lance Crist, Global Head of IFC Oil and Gas Investments.
Medanito employs over 1,000 people directly and through subcontractors
in Argentina. The company is an active supporter of local development
programs in the communities in which it operates.
Sujoy Bose, Chief Investment Officer and Head of the IFC ALAC Fund added,
“We are pleased to be making the IFC ALAC Fund’s first oil and gas investment,
funding future growth in Medanito. The company has a strong track
record of entrepreneurial growth, as well as an exciting investment program.
We look forward to working with the business to further its development."
In Argentina, IFC supports export-oriented sectors and a select group of
financial institutions, especially those that provide financial services
to low-income borrowers. IFC’s strategy promotes Argentine business
expansion into other emerging markets, encourages corporate governance,
and supports extractive industries through investments and promoting socially
and environmentally sustainable business practices.
To learn more about IFC in Latin America and the Caribbean, visit www.ifc.org/lac.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
About IFC Asset Management Company
IFC Asset Management Company, a wholly owned subsidiary of IFC, mobilizes
and manages third-party funds for investment in developing and frontier
markets. It was created in 2009 to expand the supply of long-term capital
to these markets, enhancing IFC’s development goals as well as investing
profitably for investors. It manages the $3 billion IFC Capitalization
Fund as well as the $1 billion IFC ALAC Fund.
About the IFC African, Latin American, and Caribbean Fund
The IFC ALAC Fund is a $1 billion co-investment fund that invests alongside
IFC in equity investments in Sub-Saharan Africa, Latin America and the
Caribbean. It provides long-term growth capital for private enterprises
in these regions.
Medanito S.A. is a mid-size Argentinean company active in oil and gas exploration
and production (“E&P”), liquefied petroleum gas (“LPG”) production,
and natural gas treatment services. The company’s main assets are the
Aguada del Chivato/ Aguada Bocarey E&P concession in the Neuquen Province,
and the Catriel Gas Complex in the Rio Negro Province. The company holds
three other exploitation concessions and nine exploration licenses in the
Neuquen basin, as well as an early-stage forestry business.