Announcement of IFC and Midland Montagu to Arrange Innovative Financing for Mexican Cement Company June 8, 1988

June 8, 1988 Q(NTACThonique Amaudry Press Release No. 88/48 202/473-9331 IFC AND MIDLAND MONTAGU ARRANGE INNOVATIVE FINANCING FOR MEXICAN CEMENT COMPANY The International Finance Corporation (IFC) and Midland Montagu are arranging a US$46 million credit-enhanced eurocommercial paper (ECP) program for Apasco, S.A. de C.V. and some of its subsidiaries. The New York branch of The Fuji Bank, Limited will provide an unconditional guarantee for interest and principal on notes issued. IFC, an affiliate of the World Bank, is the largest source of direct project financing for private investment in developing countries. The proceeds of the first note issue will refinance a medium-term loan from IFC to Apasco. The program will provide quote securitized financing unquote in the form of a series of ECP notes to be issued from time to time. IFC will provide a medium-term revolving underwriting facility to support the program. This transaction marks the first refinancing of this kind and will reintroduce the Mexican private sector to the international capital markets. IFC's original loan was part of an overall financial restructuring undertaken for the Apasco Group in the latter part of 1987, for which IFC and Samuel Montagu acted as financial advisers. The dealers for the program are Fuji International Finance Limited, Midland Montagu Commercial Paper and SBCI Swiss Bank Corporation Investment banking. Samuel Montagu & Co. Limited is the issuing and paying agent. Apasco, S.A. de C.V. is a major private sector Mexican cement company 49 percent owned by Holderbank Financiere Glaris Ltd. (Holderbank) and 51 percent owned by Mexican shareholders. Holderbank is a leading Swiss company and one of the world's foremost cement producers.