Washington, D.C., March 1, 2005
— The International Finance Corporation, the private sector arm of the World Bank Group, and Export Development Canada will provide a $100 million long-term financing package to Aeropuertos Dominicanos Siglo XXI, S.A. (Aerodom). The financing consists of a $45 million A-loan for IFC’s account, a $15 million B-loan with the participation of Caja de Ahorros del Mediterraneo, and a $40 million parallel loan to be provided by Export Development Canada.
Aerodom manages six airports in the Dominican Republic, including Las Américas International Airport in the capital city of Santo Domingo, and Gregorio Luperón International Airport in Puerto Plata, one of the country’s two primary tourist areas. Aerodom served over 3.8 million passengers in 2003 and accounted for over 50 percent of all passenger traffic in the Dominican Republic.
The financing package will support a $265 million investment program to upgrade and expand the airports under Aerodom’s management. This includes renovation and expansion of existing terminal buildings, runways, and aircraft parking areas; construction of new terminals; installation of new security, baggage handling, and other equipment; and construction of the Samaná International Airport on the country’s north coast.
Francisco Tourreilles, Director of IFC’s Infrastructure Department, said, “We are very pleased to be working with Aerodom and Export Development Canada in this important transaction. IFC’s investment in Aerodom will help improve the country’s airport infrastructure and support development of the tourism industry, an important earner of foreign exchange and generator of employment in the Dominican Republic. The construction of the new Samaná Airport, in particular, will help attract investment to the area and support the development of a new and attractive tourist destination.”
Atul Mehta, IFC's Director for Latin America and the Caribbean, noted, “IFC’s support to Aerodom comes at a time when many financial institutions are hesitant to engage in the Dominican Republic. IFC’s investment will have a strong demonstration effect by encouraging the international market to extend private financing to properly structured, well-managed companies like Aerodom.”
Lawrence Hazoury, Director of Aerodom, commented, “We are very pleased to be working with IFC and EDC on this project. IFC’s expertise in airport financing allowed us to secure long-term debt financing during a difficult time for the country. IFC’s leadership was critical in completing this financing. EDC also did a great job mobilizing its resources to complete a complex financing in a short time.”
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 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.
