Announcement of IFC Help to Finance Mexican Food Processing Venture December 4, 1986

Inlernational Finance C p 11 FOR RELEASE: Thursday, December 4, 1986 Monique Amaudry Press Release No. 87/26 (202) 676-9331 IFC TO HELP FINANCE MEXICAN FOOD PROCESSING VENTURE The International Finance Corporation (IFC) is investing US$400,000 in equity and providing a loan of US$1.5 million to Agro Industrial Exportadora, S.A. de C.V. (AESA) to help reactivate, expand and diversify the Mexican company's production and export of agricultural products. IFC is the leading multilateral institution that assists the economic growth of developing countries by investing in their private enterprise sectors. In addition to IFC, several Mexican businessmen with diversified experience in farming, food processing and finance are investing US$2.0 million in equity. Promociones Industriales Banamex, S.A. de C.V., an affiliate of Banco Nacional de Mexico (Banamex), is investing US$790,000 in equity. Banamex is lending US$2.0 million to AESA, and cash generation of US$700,000 completes the financial plan. The US$7.3 million enterprise will process about 18 million pounds a year of fruits and vegetables for sale in the U.S., Canadian and European markets. The processing will include freezing, pickeling and canning of diverse produce -- including pickles, chiles, broccoli, cauliflower and strawberries -- with the product mix depending on market conditions. - MORE - - 2 - The project will have processing facilities near Guadalajara and in Irapuato, and distribution facilities, including trucks and freezers at sales points. Ample supplies of fruits and vegetables for the project are available from local growers in the areas near the processing plants. The product lines selected are labor intensive and AESA will employ approximately 300 workers directly and create some 1,000 indirect jobs. At full production, the company will generate an estimated US$10 million in foreign exchange earnings. - END -