Washington, D.C., July 26, 2007
— IFC, a member of the World Bank Group, on Thursday invested in Maple Energy PLC, an integrated energy company with oil, gas, and alternative fuels operations in Peru, to help meet the country’s energy needs and support the growth of an alternative fuels market.
With IFC’s $10 million equity investment, Maple obtains a vote of confidence and some of the necessary long-term financing to expand its Peruvian oil and gas operations and its ethanol venture. In addition to the equity investment, IFC is in discussions to provide a loan of up to $30 million to Maple.
Maple is developing a sugarcane-based ethanol production project in the northern Piura region of Peru. This will be the first large-scale dedicated ethanol production in the country and is expected to boost the region’s agricultural sector as well as pioneer the stand-alone production of a renewable domestic fuel.
“IFC has found an ideal partner in Maple, as they address current energy needs while seeking innovative ways of satisfying future fuel demand,” said Somit Varma, IFC’s Director for Oil, Gas, Mining, and Chemicals. “Maple also understands the benefits of enabling local communities to participate in their economic success.”
Maple’s operations create jobs for Peruvians and generate income for the state. Its ethanol will be available for mixing with domestic gasoline, which is expected to become mandatory in Peru in 2010. IFC’s in-house environmental and social experts are working with Maple to increase benefits for local communities near its operations and to minimize the company’s environmental footprint.
“We are delighted to welcome IFC as a shareholder in Maple,” said Jack W. Hanks, Chairman of the Board and Executive Director of Maple. “This is a substantial commitment to the company by an internationally respected financial body, and we are very pleased that IFC has recognized that Maple represents an excellent investment opportunity.”
This project supports IFC’s strategy in Peru, which focuses on addressing private sector challenges by investing in a number of sectors, with an emphasis on fostering sustainable development. Key sectors include financial, microfinance, infrastructure, agribusiness, and tourism. IFC provides added value to clients in extractive industries, helping raise social and environmental standards for greater development impact in local communities and the national economy. Promoting access to finance for small and medium enterprises and housing is also at the core of IFC’s strategy in Peru.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY06, IFC committed $8.3 billion, including syndications, to 284 investments in 66 developing countries. For more information, please visit
www.ifc.org
.
