Announcement of Additional IFC Commitment in Industrias Alimenticias Noel, S.A. (NOEL), Colombia on April 21, 1965

INTERNATIONAL FINANCE CORPORATION . 1 8 1 8 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 65/4 Subject: Additional IFC Commitment in For Release AM Newspapers Industrias Alimenticias Noel, Wednesday, April 21, 1965 S.A. (NOEL), Colombia The International Finance Corporation (IFC), an affiliate of the World Bank, today announced that it is extending a $1,000,000 line of credit to Industrias Alimenticias Noel, S.A. (NOEL), a leading food products manufacturer in Colombia, which is undertaking an expansion and modernization program. This is the first I occasion on which IFC has provided financing in the form of a line of credit: the majority of IFC's investments consist of share subscriptions or the provision of both loan and share capital. The line of credit represents IFC's second commitment in the company, formerly • known as Fabrica de Galletas y Confites Noel, S.A. In 1959, IFC made a loan of $1,000,000 to assist the financing of a program which involved the relocation of NOEL's existing facilities in a modern plant, located in the city of Medellin, to- gether with an expansion of production capacity. The growth in demand for NOEL products since that time has led to the deci- sion to carry out plans for further expansion. The main objectives of the pro- gram which the company is now undertaking are to increase production capacity for biscuits, crackers and confectionery and to improve operating efficiency. The company plans to purchase additional bakery and confectionery equipment and to install new packing machines in these departments of its operations. It is expected that a substantial part of the cost of the program will be covered through cash generation from operations. The IFC line o2 credit will. however, enable NOEL to place firm orders for equipment required for the program and will • also provide assurance of the availability of foreign exchange.  - 2 - NOEL, which was established in 1916 as a limited partnership, was reorganized in 1933 as a public company. Its shares are at present owned by some 5,700 share- holders in Colombia and are listed on the Bogota and Medellin Stock Exchanges. In • recent years, the company has diversified its product line and now produces in- stant foods as well as breakfast cereals; through an acqui~ition completed in 1960, it is also a manufacturer of meat products. The IFC line of credit will be open to the company for a period of two years. Maturities of amounts disbursed will be repaid in 15 semi-annual installments, starting December 15, 1967. • •