Announcement of IFC to Help Finance One Hundred Two Million US Dollars Colombia Cement Plant on September 6, 1983

0 0[?@ 1818 H Street, N.W. International Finance Corporation Washington, D.C. 20433, U.S.A. FOR RELEASE: September 6, 1983 CONTACT: IFC Informa.tiori Office Press Release No. 84/4 (202) 676-0.694 IFC '"To HELP FINANCE $102 MILLION coi-OMBJA CEMENT PLANT -,:t• The International Finance Corp0ration (IFC) signed today in London agreements under which IFC will provide loan and equity funds to Cementos Rioclaro S.A., for the construction of a new $102 million cement plant to be located in Antioquia, Colombia. IFC is the affiliate of the World Bank which makes loans and equity investments within the private sector of developing countries throughout the world. In the signing ceremony, Giovanni Vacchelli, Director of IFC for Latin America Investments, said that "IFC was particularly pleased to have been able to bring together all the various inter11.ational sponsors, partners and lenders for such an important project." IFC, with the participation of Midland Bank 11(through MBI Projecf,\,. Finance, Ltd.), Credit Commercial de France, and the Danish Industrialization Fund for D.eveloping Countries (IFU) is lending up to $22 million for the project, which is the largest IFC has financed in Colombia. The remainder of the project's debt financing will come from the Fondo de Inversiones Privadas of Colombia, local housing banks and local financial institutions. Supplier's credits will be provided by F.L. Smidth of Denmark. In addition, IFC is contributing $5 million in equity to the Gompany, while IFU and F. L. Smid th are investing '$1. million each. The 550,000 ton per year dry-process cement plant will help alleviate a severe cement shortage in the Antioqui~ region, including ~edellin, Colombia's 11 second largest city, and assist in the development of the construction industry, which is a high priority sector of the Government.  Ci - 2 - "This 1,ew plant", added Vacchelli, "is consistent with the Colombian Government's objectives, will contribute to the development of an entire region of Colombia and has the full expe·ctation and promise to be a highly successful and profitable.venture for all concern,d." Rioclaro is prese~~y qwned by the Argos Group, Colombia's le~dtng '\~ cement producer, and nine institutional shar~holders, includ'ing three well-known development finance companies. 1 \ IFC has been active in Colombia since its first investment in 1959 • .,-, f : • Sipce that time, IFC has approved investments in approximately 37 different projects. In these projects,,IFC has invested ov;er $70 million, including participations. ~~ (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H St. N.W., Washington, D.C., 20433, Telephone (202) 676-0.394).