WASHINGTON, D.C., June 26—The International
Finance Corporation (IFC) today signed a US$55 million investment agreement
with Corporacion Cressida, S.A. de C.V., a highly-integrated manufacturing
and agribusiness company based in Tegucigalpa, Honduras. The IFC financing
will support a US$84 million investment program being undertaken by Cressida
to establish a new production facility and upgrade and modernize its existing
The investment program includes the establishment of a production complex
for soaps, detergents, and edible-oils. Cressida will also expand and modernize
its soaps and detergents facility in El Salvador and its food, drinks,
and snacks plants in Honduras. Moreover, the investment program will result
in significant environmental improvements by closing Cressida's antiquated
facilities and bringing all new and existing facilities in line with World
Bank Group environmental guidelines.
"The expansion of Cressida will promote entrepreneurial development
and corporate governance by assisting a Central American company in its
transition from a family run enterprise into a modern corporation,"
said Mr. Helmut Paul, Director, IFC. "We expect that Cressida's expansion
will create approximately 800 jobs in the region, while simultaneously
increasing the firm's competitiveness."
Cressida is a leading Honduran business group with operations throughout
Central America. The Company is the largest soaps, detergents, and tomato-based
goods manufacturer in the Central America and Panama region.
IFC's investment consists of a US$15 million loan and a US$10 million subordinated
convertible loan for its own account, and US$30 million loan for the account
of participating banks.
Present at the signing ceremony in Tegucigalpa were Mr. Miguel Facusse,
Cressida's President and Chairman of the Board; Mr. Hugh Henry-May, Manager,
IFC; members of Cressida's Board of Directors; as well as Honduran private
sector and government representatives.
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing