Washington D.C., December 20, 2007
— IFC, a member of the World Bank Group, today signed an agreement with Argentina’s Arcor Group to provide financing that will support the company’s debt refinancing and investment plans as well as job creation in Argentina.
Arcor is one of Latin America’s leading food companies and a key driver of economic activity in the diverse communities surrounding its geographically spread operations. This $130 million investment marks IFC’s second direct financing to Arcor since the Argentine financial crisis. . Banco Itaú, Banco Santander, BNP Paribas, Calyon, Rabobank, and West LB have joined as lead arrangers.
Oscar Chemerinski, IFC Director for Agribusiness, said, “IFC is pleased to help a successful export-oriented company with a strong focus on environmental and social sustainability, which is expanding into neighboring countries, creating employment in Argentina and other Latin American countries.”
Luis Pagani, President of Arcor Group said: “We are very grateful for IFC’s support, which will no doubt significantly help optimize the financing structure of our company. This in turn will advance Grupo Arcor’s expansion plans.”
Yolande Duhem, IFC Senior Manager for the Southern Cone, said, “The investment reflects our strategy to support the agroindustrial sector by helping a leading Argentine company expand its operations. In turn, this will have a positive impact in terms of growth for the company’s supplier network and the communities where it operates.”
IFC has a long-standing relationship with Arcor, beginning about 20 years ago with the extension of two loans in 1986 and 1990 totaling $22 million. In December 2005, IFC financed $280 million to refinance Arcor’s maturing long-term debt and to support its expansion plans.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
About Arcor
Arcor Group is the world’s leading candy manufacturer and the main sugar confectionery exporter for Argentina, Brazil, Chile, and Peru. The company has 41 plants, 30 in Argentina and the remainder in other Latin American countries. It produces sugar confectionery, cookies, crackers, chocolate confectionery, ice creams, and other foods. It reaches 120 countries on five continents with products under its own brand.
