Announcement of Thirteen Million US Dollars Investment in Peru's First Leasing Company on December 16, 1981

IFC Press Release No. 82/20 Wednesday, December 16, 1981 $13 Million Investment in Peru's First Leasing Company The first specialized leasing company in Peru -- SOGEWIESE LEASING, S.A. -- is being established by Peruvian institutions, a leading French financial group as technical partner, and the International Finance Corporation (IFC), an international institution that supports the private enterprise sectors of develop- ing countries. SOGEWIESE's main activity will be financing machinery and equipment through medium-term financial leases. It will assist development of the indus- trial, construction, transportation, mining and service industries in Peru. The principal project sponsors are Banco Wiese Ltdo., the second largest private commercial bank in Peru, which is investing 30 percent of the initial paid-in capital of about $1 million equivalent, and the Societe Generale Group, of France, a diversified financial organization with some 20 leasing com- pany affiliates worldwide, which is investing 20 percent. Corporacion Financiera de Desarrollo (COFIDE), Peru's leading development finance institution, and IFC will each have a 15 percent participation, and Compania de Seguros Condor and Inversiones ABC, Peruvian insurance and private investment companies, respectively, will each own 10 percent. In addition, Banco Wiese, Societe Generale, COFIDE and IFC are provid- ing an initial loan financing package of $12 million by each lending approximately $3 million to SOGEWIESE. Societe Generale also will provide managerial and tech- nical support during the Company's start-up period. IFC assisted Peruvian authorities with legal, tax and regulatory mat- ters concerning the leasing industry. SOGEWIESE is IFC's seventh investment in a leasing company. [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.]