Washington, D.C., August 2, 2004 - The
International Finance Corporation, the private sector arm of the World
Bank Group, will provide a $16.2 million loan to Brazil’s Tecon Rio Grande,
S.A. (TRG), to support the company’s expansion program. TRG holds a 25-year
concession to operate the Tecon Rio Grande container terminal in southern
Brazil. This is the country’s second largest container terminal by volume
and a gateway to Brazilian exporters.
IFC's financial package consists of an $8.1 million loan for IFC’s own
account and an $8.1 million syndicated loan for the account of International
Finance Participation Trust, a Canadian trust that invests in emerging
market project finance loans made by a group of international financial
institutions. This will be IFC’s second loan to TRG; in 1998, IFC
provided a $31 million loan to finance the company’s first phase of investments.
TRG will use IFC’s financing to purchase additional equipment, extend
the existing quay, and expand the stacking yard. The capital expenditure
program is expected to expand the terminal’s operations and enhance its
In 2003, TRG (www.tecon.com.br)
handled 324,000 container moves, a 21 percent increase over the previous
year. In the first five months of 2004, TRG handled 137,000 container
moves, 11 percent more than in the same period of 2003. Since
it opened in 1997, TRG’s volumes have grown at an annual average growth
rate of 33 percent.
Francisco Tourreilles, Director of IFC’s Infrastructure Department, said,
“IFC is delighted to continue its long-standing partnership with TRG.
The expansion will further propel TRG in its quest to becoming one
of the most important container terminals in South America. The additional
volume it generates will continue to drive economic activity in the region.”
Atul Mehta, Director of IFC’s Latin America and Caribbean Department,
added, “IFC’s financing supports Brazil’s long-standing efforts to increase
private sector participation in infrastructure services. The loan
will not only strengthen transportation infrastructure in southern Brazil,
but will also add further momentum to the growth of agribusiness enterprises
in the state of Rio Grande, which depend on Tecon Rio Grande for their
Paulo Bertinetti, Managing Director of Tecon Rio Grande, noted, “We are
convinced that this investment to expand Tecon Rio Grande’s infrastructure
and update its equipment will be crucial to making Rio Grande a more efficient
port, capable of handling larger volumes and delivering better service
to its clients”
IFC's mission (www.ifc.org)
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.