Announcement of IFC Supports Colombian Cement Industry Lends One Million Fifty Thousand US dollars for Expansion on July 5, 1974

,.NTERNATIONAL FINANCE CORPORATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 74/21 For use in morning newspapers of Fr.iday, July 5, 1974 IFC Supports Colombian Cement Industry Lends US$1.5 Million for a US$7.l Million Expansion The International Finance Corporation (IFC), a member of the World Bank Group, is lending US$1.5 million to Cementos Boyaca, S.A., to help this Colombian cement producer finance a US$7.l million expansion. Background The company, an important cement manufacturer in the central zone of Colombia which includes the Bogota area, is currently producing and selling at ~ full capacity of 360,000 tons per year. The project is aimed at expanding its production capacity to 520,000 tons per year. Cementos Boyaca is owned 51 per cent by several Colombian companies, Government agencies and individual investors. The balance of the share capi- tal is controlled by Holderbank of Switzerland, a worldwide operator of cement factories. Financing In addition to the IFC loan, other loan capital equivalent to US$J_. 5 million, will be provided by local banks. Cementos Boyaca will contribute US$4.l million equivalent from its own resources to the financing of the 1 project. Economic Effects • Colombia is going through a period of strong economic growth. Cement consumption has grown at a rate of 7 per cent per year over the last decade. The company's expansion is an important step towards keeping pace with the increasing demand.