WASHINGTON, D.C., Dec. 5—Monday, November
25, the International Finance Corporation (IFC) signed a US$60 million
investment agreement with Grupo Minsa, S.A. de C.V., the second largest
corn flour producer in Mexico.
The financing will assist Minsa construct a new corn flour plant; modernize
and expand its existing plants; upgrade the production facilities to World
Bank Group environmental standards; and restructure part of the company’s
short-term debt. Upon completion of the company’s investment program,
Minsa is expected to have efficient, state-of-the-art production facilities
and a strong financial position.
“IFC’s financing illustrates the Corporation’s support for Mexico’s
continuing privatization program,” said Mr. Helmut Paul, Director of IFC’s
Latin America Department. “By supporting Minsa, IFC is encouraging competition
in an important industry. Assuming the tortilla market is eventually deregulated,
IFC believes Mexican consumers are likely to see spill-over benefits such
as competitive pricing, product innovation, and enhanced service.”
“MINSA has been growing at a fast pace since its start up in 1993. The
IFC financial package gives the company the resources required to continue
growing our share of the corn flour market. We are pleased with the transaction
and look forward to a constructive relationship with IFC,” added Mr. Juan
Gargallo, the Chief Executive Office of Minsa.
The financing package comprises a loan of US$50 million and an equity investment
of US$10 million. The total project cost is estimated at US$80 million.
The agreement was signed at a ceremony hosted by IFC at the Corporation’s
headquarters in Washington D.C. Present at the signing ceremony were Mr.
Juan Gargallo, Chief Executive Officer of Minsa; Mr. Hubert Ehrli, Chief
Financial Officer of Minsa; Mr. Helmut Paul, Director of IFC’s Latin America
Department; and Mr. André Cracco, Manager in IFC’s Latin America Department.
Minsa, headquartered in Mexico City, has six plants throughout Mexico employing
over 1,200 people. The company was privatized in October 1993.
IFC is a member of the World Bank Group and is the largest multilateral
source of equity and loan financing for private sector projects in developing