San Salvador, December 3, 2003 — The
International Finance Corporation (IFC), the private sector arm of the
World Bank Group, signed an agreement today to provide a $25 million corporate
loan to Metrocentro S.A. de C.V., for financing the construction
of Multiplaza Panamericana, a US$52 million shopping mall project in San
Salvador.
The shopping mall financed by IFC loan is the first phase of a multi-use
complex, which will include offices, apartments, a hotel and a park in
later stages. Completion of such complex should significantly improve commercial
infrastructure of the city. The shopping mall is expected to become operational
in 2004.
Established in 1970, Metrocentro is the largest shopping mall developer
and operator in El Salvador, and is present in primary cities as well as
less developed secondary cities and rural areas of the country. The company
has played an important role in the development of those cities by stimulating
local retailers, local employment, the related supplementary infrastructure
and offering higher standards of retail at lower prices to a wide range
of consumers.
Bernard Pasquier, IFC’s Director of the Latin America and Caribbean
Department, said: “IFC’s financing will support an expansion of
a competitive service oriented company, which will have a significant impact
on the country’s retail sector, related infrastructure and local employment,
in addition to creating entrepreneurial opportunities for individual
shop owners and their small business suppliers. Furthermore, IFC values
its long standing relationship with the Poma Group, which has been actively
developing a number of important projects in the Central American region”
Mr. Ricardo Poma, President of Metrocentro, also noted: “This project
is part of the Group’s continuous expansion strategy to address the increasing
demand for quality retail infrastructure in San Salvador. By providing
the necessary infrastructure and easy access to its shopping malls, Metrocentro
will also continue to facilitate the development of the formal retail sector
in the country.” Mr. Poma added: “IFC’s participation in the project
is very important due to IFC’s assistance in the company’s planned training
program for existing and new tenants, which will contribute to improvements
in the quality of their service and overall business skills”.
As of Fiscal Year 2003, Central American and Caribbean countries
received IFC funding for a combined $291.4 million, with projects in Costa
Rica, the Dominican Republic, El Salvador, Guatemala, Jamaica, Panama and
Trinidad and Tobago. IFC is supporting the process by which Central American
countries seek to establish economies of scale and increase their competitiveness
in the face of accelerating globalization.
IFC's mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people's lives. IFC finances
private sector investments in the developing world, mobilizes capital in
the international financial markets, helps clients improve social and environmental
sustainability, and provides technical assistance and advice to governments
and businesses. From its founding in 1956 through FY03, IFC has committed
more than $37 billion of its own funds and arranged $22 billion in syndications
for 2,990 companies in 140 developing countries. IFC's worldwide committed
portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion
held for participants in loan syndications.
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