Announcement of IFC Investment in Guatemala on October 2, 1958

\'J HOLD FOR RELEASE \ INTERNATIONAL FINANCE CORPORATION 8 1 9- H STREET, N. W., WA 5 HIN GTO N 2 5, 0. C. TELEPHONE: EXECUTIVE 3-6360 PRESS RELEASE NO. 19 () FOR RELEASE: A.M. Newspapers SUBJECT: IFC Investment in Guatemala Thursday, October 2, 1958 Mr. R.L. Garner, Pr~sident of the International Fin&.~ce Corporation, today announced a commitment, subject to the completi()n of the neQessary legal formalities, for IFC to invest $200j000 in Industria Harinera Guatemalteca S.A. (INHSA) a ,Guatemalan corporation. INHSA is constructing a modern flour mill on the outskirts of Guatemala City, \:;tith a productive capacity of abou·li 19,000 tons a year of fine white flour and by-products. Production is expected to begin early in 1959. The company was formed in 1955 by a group of prominent local m!llers and flour importers to produce a type of flour which is not yet produced in local mills but is currently being .imported. The design, n,.achinery, and technical supervision of installations are being provided by Golfetto S.P.A. of Padua, Italy, a well known supplier of milling equipment~ The President of INHSA is Mr. Felipe de Leon G., and the Executive Vice President is Mr. Juan B. Gutierrez. The total cost of the prcject will be nearly $1,000,000. IFC's invest- ment ~f $200,000 will be in notes bearing interest at 5% per annum. '" The notes will be retired in equal semi-annua,!"'-.installments starting in July 1963 with I\ I ,I final maturity on Jant1h.ry 1, 1966. --- In addition to fixed interest, IFC will receive a profit participation, • payable in local currency, depending on the amount of earnings. IFC will also have an optton to subs~ribe to ordinary shares of the company at par for an amount equivalent to 37-1/2% of I,FC's investment.