Announcement of IFC to Provide Guarantee Facility to Major Mexican Construction Firm February 8, 1988

February 8, 1988 Monique Amaudry Press Release No. 88/31 202/676-1171 IFC TO PROVIDE GUARANTEE FACILITY TO MAJOR MEXICAN CONSTRUCTION FIRM The International Finance Corporation (IFC) will provide a US$20 million construction guarantee facility to the construction subsidiaries of Constructoras ICA, S. A. de C. V. (CICASA), to enable them to secure bonding and project mobilization financing for overseas construction contracts. The guarantee facility will be counter- guaranteed by CICASA. CICASA is a member of the ICA Group, a large Mexican industrial and construction conglomerate. The facility provided by IFC will permit CICASA to continue its exports of engineering and construction services in which it has built up a considerable expertise, and thereby have an important favorable effect on Mexico's balance of payments through export earnings. The project consists of setting up a guarantee facility in favor of one or more institutions that would issue construction bonds on behalf of or provide project mobilization financint to CICASA's subsidiaries. The US$20 million facility -- which will be available in two tranches of US$10 million -- would permit CICASA to pursue and obtain international contracts.with a cumulative value in excess of US$100 million. IFC, an affiliate of the World Bank, is the leading private sector agency which provides equity financing and long-term loans without government guarantees to private enterprises in developing countries. - END -