Announcement of IFC to Arrange Loan Package for Hidra Oil Venture in Argentina February 17, 1988

February 17, 1988 'MT : Monique Amaudry Press Release No. 88/33 202/676-9331 IFC ARRANGES LOAN PACKAGE FOR HIDRA OIL VENTURE IN ARGENTINA The International Finance Corporation has arranged a $20 million participation by commercial banks for a $80 million loan it is providing for the Hidra project, the first commercial development of an offshore oil field in Argentina. The discovery was made in 1982 by Total Austral, the operator of a joint venture comprising Bridas Austral S.A. (25%), Deminex Argentina S.A. (37.5%) and Total Austral (37.5%). Credit du Nord (France), BIAO Afribank, Soci6t6 G6n6rale and Bergen Bank A/S will participate in the financing of the $250 million project, which will bring on stream an initial production of 27,000 barrels of oil per day, representing more than 5 percent of Argentina's petroleum consumption. The IFC financing is additional to $125 million being onlent to Hidra by a syndicate of commercial banks, led by Citibank, under the 1985 Argentine debt rescheduling arrangements, together with several export credits including a $40 million credit line guaranteed by the French COFACE. Located off Tierra del Fuego, in the southern tip of Argentina, the project consists of the construction of two offshore well-head platforms, an onshore treatment plant and loading facilities. Construction will take two years. IFC, an affiliate of the World Bank, is the leading development institution providing equity financing and long terms loans at commercial rates to the private sector in developing countries. - MORE - -2- IFC currently holds investments in 14 Argentine companies amounting to $279 million in textiles, food and agri-business, chemicals and petrochemicals, capital markets, pulp and paper, cement and construction materials, and port and storage facilities. - END -