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Washington D.C., July 2, 2003
— The International Finance Corporation (IFC), the private sector arm of the World Bank Group, signed an agreement today to provide a $25 million corporate loan to support the operations of Gloria S.A., the leading dairy products company in Peru and one of the largest diversified groups in the country.
IFC’s loan, with a ten-year tenor, will help finance Gloria’s ongoing investment needs, including the expansion and upgrading of its core dairy business operations, as well as the expansion of its raw milk collection activities and environmental improvements.
Gloria S.A. is the main operating company of Grupo Gloria, a diversified industrial conglomerate with operations in Peru, Bolivia, and Puerto Rico. In 2003, Grupo Gloria expects to reach $650 million in total sales. Gloria S.A. also manufactures and sells a range of consumer food items including juices, canned fish, and other food products. In addition to its core dairy and food products operations, Gloria has investments in the packaging, pharmaceuticals and cement industries in Peru.
Gloria S.A. is a major employer with over 10,000 milk suppliers, many in remote, rural locations. In its dairy business, the company plays a central role in developing Peru’s local dairy industry with the objective of increasing local raw milk supply. IFC, together with IFC's Corporate Citizenship Facility, will work with Gloria S.A. to provide technical assistance for Peruvian milk producers as well as to develop a pilot linkage project to provide micro/small scale loans to rural milk producers as a way to help improve their productivity and output quality.
“This operation highlights IFC’s commitment to support the continued development and competitiveness of an important Peruvian company”, said Mr. Bernard Pasquier, IFC’s Director of the Latin America and Caribbean department. He added, “IFC will work with Gloria to maximize the company’s positive development impact in the dairy sector of Peru and to support the company’s operations in its other industrial sectors.”
Jorge Rodriguez, CEO of Gloria S.A., said: “IFC’s corporate facility will be key to allow Gloria to continue its growth and success path. It will also give the company the opportunity to work with IFC in implementing a long-term program to support the development and improved productivity of the Peruvian milk producers.”
Paolo Martelli, IFC’s Country Manager for Peru and the Andean Region, also stated: “This is an important investment that confirms IFC’s support for the modernization and expansion efforts of Peruvian groups committed to the sustainable economic development of the country.”
IFC's committed portfolio in Peru stood at $284 million of own funds as of end-May 2003. Participants banks' commitments totaled $73 million. IFC's strategy in Peru has been focused on supporting the development of a strong private sector, while enhancing competitiveness and employment creation. Areas of investment include the financial sector and infrastructure, as well as the promotion of direct investment in sectors such as manufacturing, telecom, tourism, agribusiness, and natural resources with special attention to commercially oriented environmental projects.
IFC's mission 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 FY02, IFC 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 committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.
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