Washington, D.C., February 28, 2003
- The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, will provide a US$38 million financing package to support the international expansion of Marcopolo S.A., Latin America's leading bus producer. The IFC investment includes loans to Marcopolo in Brazil and to its subsidiary, Polomex S.A. de C.V., in Mexico.
Given the relative maturity of the Brazilian bus market, Marcopolo has been expanding its focus to international markets, both through exports and the location of new production facilities in other developing countries. IFC's investment builds on Marcopolo's successful strategy and will assist the company maintain its market leadership position.
Marcopolo is listed at the São Paulo Stock Exchange (Bovespa) with a Level 2 ranking, which is granted to companies that voluntarily adopt corporate governance standards exceeding those required by the current Brazilian legislation.
Bernard Pasquier, IFC's Director for the Latin America and Caribbean Department noted: "The investment in Marcopolo will support the export growth strategy of a key Brazilian economic actor and employer. This long-term investment will also help demonstrate the benefits of strong corporate governance practices and transparency.
“The IFC investment in Marcopolo will support the expansion of a Brazilian firm into other emerging markets. This fits well with one of our major priorities which is to help companies from developing countries grow through South-South investments. Another key benefit of this project is the fact that the company is transferring new technologies into the countries in which it operates,” said Richard Ranken, IFC’s Director for the Global Manufacturing and Services Department.
José Valiati, Marcopolo’s Finance Manager stated: “We are very pleased with this investment which will strengthen Marcopolo's relationship with IFC. It will provide the additional financial resources for Marcopolo to take advantage of growth opportunities worldwide.” Carlos Casiraghi, CEO of Polomex, added: “With Polomex’s sales expanding in Mexico, IFC's long-term funding will enable the company to increase the level of working capital needed for our operations as we move forward.”
Marcopolo, founded in 1949 in Caxias do Sul, Brazil, is the largest bus producer in Latin America. It has operations in Brazil, Colombia, Mexico, Portugal, and South Africa, with a labor force of 8,800 employees. Marcopolo’s exports reach over 70 countries. Polomex is a joint venture between Marcopolo and Mercedes-Benz Mexico S.A. de C.V., established in 2000 to serve the Mexican and NAFTA markets.
Notwithstanding significant financial market volatility, Brazil was the largest recipient of IFC's financing in fiscal year 2002. IFC committed $620 million in loan and equity financing in support of Brazilian companies in the financial sector as well as in manufacturing, education, information technology, infrastructure and retail.
To meet the decline of available trade lines in Brazil, IFC has recently strengthened its support to Brazilian companies responding rapidly to the needs of its clients under shifting economic conditions, by making long-term capital as well as much needed trade financing lines available to the private sector.
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 through FY02, 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 worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications
