Washington, June 5, 2007
— IFC, the private sector arm of the World Bank Group, today signed an agreement with Kappa Energy Colombia Ltd, a subsidiary of oil and gas group Kappa Energy Holdings (BVI), to provide a financing package to support its expansion plans.
A statement from Kappa Energy Colombia Ltd said, ”We believe this is the beginning of a long relationship with IFC. We look forward to continuing work on this project and to discussing more projects with IFC as we expand in the country and across the region.”
IFC will provide a debt facility of $20 million and the option for an equity investment of up to $10 million in the company.
Roberto Albisetti, IFC Country Manager for Colombia and the Andean Region, noted, “IFC is committed to supporting companies like Kappa, with a strong track record and a commitment to implementing best practices in the environmental and social sectors. IFC looks forward to supporting Kappa’s continued growth in Colombia and the region.”
Kappa has been operating in Colombia since 1997 and holds exploration and production licenses. Its main production assets are the Abanico oil field in the upper Magdalena Valley and the Cerrito gas field in the Catatumbo Basin near the city of Cucuta.
IFC in Colombia
IFC’s total portfolio in Colombia as of December 2006 was over $506 million. Since Colombia became a member of the IFC in 1956, the Corporation has provided $1.7 billion to the country’s private sector, including syndicated loans for a total of $500 million.
IFC’s strategy for Colombia focuses on increasing support to sectors that are central to the country’s financial development within the framework of free trade agreements. This includes the financing of infrastructure projects involving public-private partnerships, such as the expansion of ports, roads, and airports, as well as support to logistics companies. IFC also aims to finance Colombian oil and gas companies, in particular those looking to expand across the region.
About IFC
IFC is the private sector arm of the World Bank Group and promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to improve their lives. Over the past 50 years, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
.
