Announcement of IFC to Help Expand and Modernize Argentine Pulp and Paper Enterprise on February 8, 1988

February 8, 1988 Monique Amaudry Press Release No. 88/30 202/676-9331 IFC HELPS EXPAND AND MODERNIZE ARGENTINE PULP AND PAPER ENTERPRISE The International Finance Corporation is helping finance a $59.8 million project involving the expansion and modernization as well as a financial restructuring of Massuh S. A., one of Argentina's leading paper producers, and its wholly-owned subsidiary, Brillapel S. A. The project consists of doubling Massuh's semi-chemical pulp production capacity to 54,000 mty from 26,400 mty; building a paper coating plant (Brillapel S. A.) with a production capacity of 18,200 mty; improving efficiency in two other Massuh's paper plants; and strengthening Massuh's and Brillapel's financial position. Loan financing for the project will be provided by IFC ($14 million), commercial banks under the Argentine onlending programs, suppliers' credits, and Argentina's National Development Bank. Equity financing will be provided by Massuh's shareholders (including a subscription by IFC as holder of 3.5% of the share capital of Massuh S. A.). The industrial components of the project will be implemented by Massuh S. A. and Brillapel S. A. with technical advice to be provided by Sund Defibrator of Sweden. Completion of the project is expected by February 1989.