México City, July 12, 2006-
The International Finance Corporation, the private sector arm of the World Bank Group, signed today an agreement to provide a credit line to Volaris, a high-efficiency airline that began its operations in March this year.
This operation is a milestone in the history of Mexico’s aviation industry, since it is IFC’s first financing to an airline in the country.
The credit line consists of a $30 million revolving credit facility for predelivery payments toward the purchase of Airbus A-320 family aircraft, and an additional $10 million as working capital loan.
The event was hosted by Pedro Aspe, President of the Board of Directors at Volaris. The company’s Chief Executive Officer, Enrique Beltranena, was also present, as well as Francisco A. Tourreilles, Director of IFC’s Infrastructure Department, and Paolo Martelli, IFC’s Manager in Mexico.
Tourreilles said, “IFC’s financing to Volaris fits with our strategy in Mexico of supporting the development of regional infrastructure as a means to stimulate economic growth." He pointed out that Volaris “is providing a great contribution to the development of its industry in Mexico by offering an affordable and reliable alternative for air passengers."
During the event, Tourreilles also note some Latin American airlines that have recently received support from IFC, including TACA in El Salvador, TAM and GOL in Brazil, Lan in Chile, and Copa in Panama.
Volaris’s
CEO,
Enrique Beltranena, said, “The trust placed in this project, although is just starting, boosts the goals that Volaris
has
set, by bringing us support from such an organization as important as IFC.”
IFC in Mexico
Since 1956, IFC has invested $5.6 billion, including $2.2 billion in syndications, in Mexico, in sectors ranging from infrastructure and manufacturing to agribusiness and the financial sector, making the country the third-largest recipient of IFC financing in dollar value, after Brazil and Argentina. IFC committed $279.8 million in FY05 as new financing in Mexico, and it held a total portfolio of $1.6 billion in the country, including syndications, as of May 2006.
IFC's strategy for Mexico focuses on enhancing the international competitiveness of the Mexican private sector, especially by further deepening the financial sector, promoting investments where the private sector can play a larger role, and promoting sustainable social and environmental development and good corporate governance.
About IFC
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
.
About Volaris
Volaris is an airline with a solid financial background and a strong business plan, and it is devoted to offering excellent service. With its philosophy of providing safe, efficient, and cost-effective service to its passengers, Volaris is playing a significant role in promoting passenger air transportation within Mexico. For more information, visit
www.volaris.com.mx
.
