Washington, D.C., June 9, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, has signed an agreement to provide a medium-term revolving credit facility of $30 million to Grupo Taca for the benefit of Taca International Airlines S.A. and other members of Grupo Taca, for pre-delivery payments (PDPs) towards the purchase of Airbus A-320 family aircraft. This is IFC's first financing in Central America’s airline sector.
A leading Latin American airline, TACA currently operates 111 daily flights to 35 destinations in 19 countries in the Americas from its hubs in San Salvador (El Salvador), San Jose (Costa Rica) and Lima (Peru). With its extensive network and direct connections from a number of North American destinations, TACA has substantially reduced the cost of air travel to and from Central America, making the region more accessible to both business and leisure travelers.
“IFC is delighted to be a partner of TACA as it expands and continues to provide safe, efficient and low cost service to, from and within Central America,” said Francisco A. Tourreilles, director of IFC’s Infrastructure Department.
Atul Mehta, director of IFC’s Latin America and Caribbean Department, noted, “IFC’s financing of TACA’s expansion supports the Corporation’s strategy in Central America, which places significant emphasis on developing regional infrastructure as a means to stimulate economic growth.”
Roberto Kriete, Chairman of Grupo Taca, said, “TACA is very pleased to have closed this transaction successfully, in what we hope is the first step of a long and fruitful relationship with IFC. We appreciate IFC's valuable support, both for our company and the region”
IFC seeks to support Central American countries as they work to increase their competitiveness in the face of accelerating globalization. IFC’s investment in TACA is particularly timely as the recently signed Central America Free Trade Agreement creates new opportunities and challenges for the private sector and the governments of the region.
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing and transition economies, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the emerging markets, 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 FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
