Announcement of Investment in Acindar Industria Argetina de Aceros, S.A. in Argentina on July 8, 1960

, r; ,, O• .I N TE R NAT I ON AL F IN AN C E C O R PO RAT I ON . . • 18 H STREET, N.W. 1 WASHl~)GTON 25, 0. C. TELEP.HONE: EXECUTIVE ~-6360 <. \. PRF,SS RELEASE NO. 42 0 S OBJECT : Investment in FOR RELEASE Acindar Industria ., ·A. M. Newspapers Arge~tina qe Aceros, S.A. Friday., July·B, 1960 in Argentina The Intemational Finance Co:ry.oration (IFP) announced today a cornmit- 11 q ment to invest U.S. :)i3,660,ooo in Acindar Indtistria Arge~;tina de Aceros, S.A., \\ or $.ant,a Fe' Province, Argentina., to help finance a program for modemization <:£ racili ties and increased production or a wide range o.f rqlled steel products, wire and ~11.re products, ,:and galvanized and black pipe. Acindar was incorporated in 1942. Chairman of the Board is Arturo • Acevedo, a leading Argentine industrialist. The company has expanded opera- tions several times, and now has plants in the cities or Rosario arid Villa Constitucion. It:,s production accounts ro.r about 45% or the total output of Argentina I s primary steel producing and converting companies·. The Villa Constitucion rolling mill is the largest in the country. The IFC investment will help finance modernization of the pipe mill and expansion of capacity from 56.,000 to 120.,000 tons per year. The new expansion program also includes the following: (a) modernization of the wire mill and expansion of capacity from 71,000 to 100,000 tons per year; (b) modenuzation of the rolling mill and expansion or capacity from· 228,000 to 382,000 tons per year; (c) expansion or generating capacity from 5,ooo kw. to 17,500 kw. Total c6~t of the program is estimated at U.S. $22,349,000 equivalent • ••  ()· - 2 Financing will be as follows·: U.S. Export-Import Bank $5,645,000 IfC investment 3,660,000 i.' Sale of addit:ional shares 3,640,000 Suppliers' and other credits 4,315,000 Funds from company operations 5,089,000 The IFC investment will be in unsecured dollar notes bearing 10% interest payable in dollars and maturing between 1965 and 1970. .The notes will be convertible into 8% participating preferred shares at @llY time after July 1963. IFG' s commitment is subject to completion of ·the nf3cessary legal formalities. • '/