Washington, D.C., May 19, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, will provide $20 million in long-term debt financing to Inversionistas en Autotransportes Mexicanos S.A. de C.V. (IAMSA). IAMSA and its affiliated companies, Omnibus de Mexico S.A. de C.V., Grupo Toluca and Flecha Amarilla are among the largest intercity bus operators in Mexico. This is IFC’s first financing ever in the bus transport sector.
IFC’s financing will support the $369 million fleet renovation program the group is conducting between 2002 and 2005, which includes acquisition of 1,985 buses. The Mexican transportation group’s bus renewal program is expected to have a number of significant impacts: increasing its fuel efficiency, reducing its emissions, lowering costs for operations and maintenance, and improving safety and service quality for customers.
Bus transport is the dominant mode of public transportation in Mexico, accounting for over 90 percent of total passenger transport.
“IFC’s financing of fleet renewal for IAMSA group, one of the largest intercity bus operators in Mexico, will help provide modern and efficient intercity transport services in Mexico. These services play a critical role in the country’s economic activity, regional integration, and mobility for the local population,” said Francisco Tourreilles, Director of IFC’s Infrastructure Department.
Bernard Pasquier, IFC's Director for Latin America and Caribbean, added, "By supporting a leading group of bus operators in Mexico, this investment will contribute to development of the country's transportation infrastructure. We look forward to working with IAMSA in supporting future investments."
Rafael Herrera Fernández, President of IAMSA, noted, “Our group not only has the youngest fleets in the country, but also has a strong policy of innovation in its operations and administrative procedures. The group is committed to maintaining its leadership in implementing the most advanced technology for transport, communications, and information. This helps us provide the best service to clients, as well as protect the environment and serve local communities.”
Mr. Herrera added, “ It is a great privilege to have the support of IFC, because this confirms the reputation that our group has earned in the financial sector, locally and internationally.”
IAMSA and its affiliates are leaders in the Mexican intercity bus transportation market, serving 20 of 32 Mexican states, in the center and north of the country. These states comprise the most populated parts of the country, accounting for 73 percent of the population and 80 percent of Mexico’s GDP.
The mission of IFC (
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.
