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.

About IFC
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, visit www.ifc.org.

Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/ifcnatresources
www.youtube.com/wbifc
www.ifc.org/SocialMediaIndex

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.

About Medanito
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.