Announcement of Colombian, U.S. Investors, IFC Invest in Leasing Firm on February 4, 1981

International Finance Corporation • 1818 H Street. N.W. Washington. D.C. 20433, U.S.A. 202-4 77-1234 IFC Press Release No. 81/33 Wednesday, February 4, 1981 Colombian, tJ.S. Investors, IFC Invest in Leasing Firm A Colombian leasing company will expand an.d diversify its operations with additional financing from local and United States investors and from the International Finance Corporation (IFC), an affiliate of the World Bank. IFC is providing approximately $190,000 in equity and $9 million in loan to Leasing Bolivar S.A. Corpor.acion Financiera Colombiana is investing some S670,000 equivalent in equity and $1 million equivalent in peso loan; and . U.S. Leasing International (USLI), $160,000 in additional equity. Seguros Bolivar Group and USLI were the original shareholders of the Company whose • current equity amounts to $1 million • IFC is retaining.$3 million of its loan for its own account while $6 million 'Will be taken up by three participati.ng banks: Manufacturers Hanover Trust Company, New York; Union Bank (Standard Chartered Bank), Los Angeles; and Scandinavian Bank Limited, London. Leasing Bolivar's princi.pal activity will be the leasing of industrial equipment to small and medium-scale enterprises which are an important element in the Colombian economy but have limited access to existing financial resources. Thus, the Company will offer a more flexible, alternative source of industrial financing to the smaller companies for longer terms and at lower rates than now prevail in Colombia. At the same time it will be supporting the domestic capital goods industry. A wide range of innovative leasing instruments will be introduced by Leasing Bolivar and it is expected to increase the capabilities and efficiency of the country's incipient leasing industry. In addition to arranging long-term foreign currency financing for Leasing Bolivar, IFC assisted the Company by help- ing to formulate its policy orientatien and define its ta~get markets • • [Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394.]