Announcement of Investment in Fabrica Argentina de Engranajes S.A.I.C. (FADESA) in Argentina on August 2S, 1961

HOLD " , FOR RELEASE INTE,RNATIONAL FINANCE CORPORATIO,N • ~ 1 8 H STR,EET, N.W., WASHINGTON 25, 0. C. TELEPHONE: EXECUTIVE3-6360 PRESS RELEASE NO. 59 SUBJECT: Investment in Fabrica For Release Ai1gentina de Engranajes A.M. Newspapers S.A.I.C. (FADESA) Friday, August 2S, 1961 iI,l Argentina The International Finance Corporation (IFC) today announced a commit- ment to invest US $1,500,000 in Fabrica Argentina de Engranajes S.A!I.C. (FADESA), a subsidiary of Oerlikon Machine Tool Works Buehrle and Coe, Switzerland. Its investment will help finance the establishment of a plant for the manufacture of fully assembled transmission units and gears for tractors. • The company plans in a second stage to manufacture transmissions and gears for trucks and automobiles. It will be the first company to specialize in the manufacture of these products in Argentina. FADESA will initially be wholly owned by the Oerlikon-Buehrle concern, which manufkctures a wide range of machine tools, business machines, air-brake equipment for railways, textile machines, and welding electrodes. The total cost of the project is estimated at US $4,300,009. The IFC investment of ~~1,500,000 will be repres~nted by unsecured dollar notes, half of which will be convertible. The notes bear 7% interest, are payable in dollars, and mature between 1968 and 1973. IFC's commitment is subject to completion of the necessary legal requirements~ • ;\ \\ Ii