Washington, June 5, 2007 — IFC,
the private sector arm of the World Bank Group, today signed an agreement
with Kappa Energy Colombia Ltd, a subsidiary of oil and gas group Kappa
Energy Holdings (BVI), to provide a financing package to support its expansion
A statement from Kappa Energy Colombia
Ltd said, ”We believe this is the beginning of a long relationship with
IFC. We look forward to continuing work on this project and to discussing
more projects with IFC as we expand in the country and across the region.”
IFC will provide a debt facility of
$20 million and the option for an equity investment of up to $10 million
in the company.
Roberto Albisetti, IFC Country Manager
for Colombia and the Andean Region, noted, “IFC is committed to supporting
companies like Kappa, with a strong track record and a commitment to implementing
best practices in the environmental and social sectors. IFC looks forward
to supporting Kappa’s continued growth in Colombia and the region.”
Kappa has been operating in Colombia
since 1997 and holds exploration and production licenses. Its main production
assets are the Abanico oil field in the upper Magdalena Valley and the
Cerrito gas field in the Catatumbo Basin near the city of Cucuta.
IFC in Colombia
IFC’s total portfolio in Colombia as
of December 2006 was over $506 million. Since Colombia became a member
of the IFC in 1956, the Corporation has provided $1.7 billion to the country’s
private sector, including syndicated loans for a total of $500 million.
IFC’s strategy for Colombia focuses
on increasing support to sectors that are central to the country’s financial
development within the framework of free trade agreements. This includes
the financing of infrastructure projects involving public-private partnerships,
such as the expansion of ports, roads, and airports, as well as support
to logistics companies. IFC also aims to finance Colombian oil and gas
companies, in particular those looking to expand across the region.
IFC is the private sector arm of the
World Bank Group and promotes open and competitive markets in developing
countries. IFC supports sustainable private sector companies and
other partners in generating productive jobs and delivering basic services,
so that people have opportunities to improve their lives. Over the past
50 years, IFC Financial Products has committed more than $56 billion in
funding for private sector investments and mobilized an additional $25
billion in syndications for 3,531 companies in 140 developing countries.
IFC Advisory Services and donor partners have provided more than $1 billion
in program support to build small enterprises, to accelerate private participation
in infrastructure, to improve the business enabling environment, to increase
access to finance, and to strengthen environmental and social sustainability.
For more information, please visit www.ifc.org.