Announcement of Co-financing an Electric Project in Argentina with Private Bank Group on August 23, 1977

82.8 •World Bank · 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE August 23, 1977 CO-FINANCING AN ELECTRIC PROJECT IN ARGENTINA WITH PRIVATE BANK GROUP The World Bank announced today a co-financing arrangement with a group of eight private banks to assist in the financing of an electric transmission and distribution program in Argentina. The private banks will provide a $50 million Eurodollar loan to support the investment program being undertaken by Servicios Electricos del Gran Buenos Aires (SEGBA), the main distributor of electricity in the Greater Buenos Aires area. It will be associated with a $115 million (US dollar equivalent) World Bank loan to SEGBA approved in September 1976. The co-financing loan has a term of five years and an interest rate of 1-3/4% over the mean six month London Interbank Offered Rate for Eurodollar • deposits (LIBOR) • This operation reflects the 'World Bank'soontinuing effort to encourage private investment in economic development by co-financing high priority develop- ment projects jointly with private banks and institutional lenders. An important feature of the co-financing arrangement is that the World Bank and the private ban~5 have agreed to exchange information and to hold prior consultation on substantive matters related to their respective loans. Acting as co-lenders ot the loan by the private banks are the fol lm,•if"lg: The Bank of Nova Scotia-Toronto (Agent for the group); Security Pacific National Bank - Los Angeles; Bank of Ame~~c~ NT & SA - San Francisco; Citibank, N.A. - New York; Chemical Bank - New York; Union Bank - Los Angeles; Grindley Brandts Ltd. - London; and National Bank of North America - New York. The private banks loan wi 11 assist SEGBA, one of the largest electric utilities in Latin America, to carry out its 1977-1981 Investment Program to meet the increasing demand for electric power in the Greater Buenos Ai res area. The five year investment program is estimated to cost the equivalent of about US$900 million. The projec 4 part!ally financed by the World Bank and the private banks, forms part of this program and costs about US$495 million. - 0 - •