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Washington, D.C. /Buenos Aires, July 30, 2015
—IFC, a member of the World Bank Group, today signed a $520 million financing agreement with Pan American Energy to help the company develop its oil and gas resources to help meet Argentina’s growing energy needs.
The financing package consists $120 million for IFC’s own account and $400 million raised by IFC from commercial banks and financial institutions including: ICBC, Banco Itau BBA, Natixis, Credit Agricole, Banco Santander, Banco Bilbao Vizcaya Argentaria, and Banco Latinoamericano de Comercio Exterior. IFC’s loans extend to seven years, a long loan maturity in Argentina’s financial markets.
Pan American Energy has been an IFC client for over 20 years and is the second-largest oil and gas producer in Argentina, contributing with 17% of the country’s hydrocarbon production. The company is also a major employer in southern Argentina and is a strong sponsor of local businesses.
The IFC financing will be used for the company’s $1.5 billion expansion program in the Cerro Dragon block in Golfo San Jorge and the Lindero Atravesado block in Neuquen. IFC is also working with the company to strengthen its environmental and social management.
“With this financing, we look forward to continuing our long-term relationship with Pan American Energy, a company that is helping to meet Argentina’s growing energy demands and shares our commitment to also helping local communities benefit from oil and gas operations,” said Lance Crist, IFC’s Global Head for Oil, Gas and Mining. “We are pleased with the success in raising $400 million in long term funding from international banks, which is a reflection of Pan American's strong profile in the market.”
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
About Pan American Energy
Pan American Energy is a regional hydrocarbons exploration and production, with activities in Argentina, Bolivia, and Chile. In the last decade, Pan American Energy has established itself as the second-largest oil and natural gas producer in Argentina. The company is one of few in the country to have consistently increased its oil and gas production in recent years. Since 2001, PAE invested over $11 billion in Argentina and increased its oil and gas production by 28 percent and 55 percent respectively.
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