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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 efficiency.
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 exports.”
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.
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