Announcement of IFC Investment Helps Finance New Expansion by Alpargatas on June 20, 1984

0[?@ International Finance Corporativrz 1818 H Street. N W Washington. D.C 20433. US A FO'R RELEASE: Wednesday, June 20, 1984 CONTACT: Don Roessner IFC Press Release No. 84/28 (202) 676-0394 IFC Investment Helps Finance New Expansion by Alpargatas The International Finance Corporation (IFC) will help finance the on-going expansion/modernization program of Alpargatas S.A.I.C. -- a leading . Argentine textile and shoe sector company. The investment is the second in Alpargatas by IFC, which is the World Banlt affiliate that assists economic growth by supporting pfi~-~~ie enterprise ventures in developing countries. IFC previously invested in Alpargatas in 1977 when it helped to finance an expansion of the company's textile production from 4 5 million squa~~ _m~ters a year to 60 million square meters. IFC is now lending $7.5 million for the $38.2 million equivalent project and investing $2 million in the company's equity. In.addition, it is rescheduling the outstanding balance of $1.62 million from its first loan to Alpargatas. Banco Nacional de Desarrollo, the Argentine developnent bank, is lending $5.7 million equivalent. Deferred taxes, suppliers' credits and internally generated company funds complete the financial pla~. The project consists of two components. One is the second stage of the Alpargatas indigo denim plant in Corrientes, in .~ortfi'e3st Argentina -- doubling its capacity to 14. 7 million square meters a year. The second component is the construction of a new shoe manufacturing plant in La Pampa, in the central part of the country, which will have an annual capacity of 2.3 .million pairs. The expansion/moderni~ation will improve the company's overall i' efficiency and create some 875 direct jobs with additional indirect employment in supplier and customer sectors. It is in line with the Government's efforts to decentralize industry away from the congested Buenos Aires area and will result in estimated net foreig11 excrJ)ange benefits of $11.8 million a year. The Corporation has also helped to finance Alpargatas' ~ishing subsidiary, Alpesca S.A.