Washington, D.C., May 16, 2003—
The International Finance Corporation, the private sector arm of the World Bank Group, has rescheduled $27.5 million in IFC's outstanding loans provided to Compañías Asociadas Petroleras S.A. (CAPSA), Argentina. The rescheduling of IFC's loans includes A and C loans for IFC's own account and a B-loan for the account of participating banks, and is part of the overall rescheduling of the company's outstanding debt of $94.7 million equivalent.
CAPSA is one of the small independent oil and gas producers that has been affected by the recent turmoil in Argentina. The company operates the Diadema and KM20 oil fields in the Comodora Rivadavia region of Argentina's southern Chubut province. The expansion of the company’s secondary recovery program will increase oil production in the Diadema field to approximately 10,000 bpd. It was funded on a project finance basis with long term debt secured in part by IFC and a syndicate of participating banks in IFC's B-loan program. The rescheduling of CAPSA's debt helps the company to withstand the current difficult environment in Argentina.
Mr. Rashad Kaldany, IFC director for oil, gas, mining, and chemicals said, "The successful closure of this debt rescheduling was largely due to the confidence of the lenders in the long-term viability of the company. The transaction will have an important demonstration effect for other Argentine projects, many of which have strong business prospects but are constrained by liquidity problems."
Ms. Suellen Lazarus, IFC director for syndications, added, "We are delighted that the banks in the IFC B-loan were unanimous in their support for this rescheduling. The transaction will contribute to business confidence in Argentina, especially on the part of foreign investors."
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. Since its founding in 1956, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was $15.1 billion.
