Announcement of Investment in Fertilizantes Sinteticos S.A. in Peru on September 28, 1959

INTERNATIONAL FINANCE CORPORATION 818 H STREET, N.W., WASHINGTON 25, D. c. TELEPHONE: EXECUTIVE 3-6360 PRESS RELEASE NO. 34 For Release SUBJECT: Investment in A.1'1. eewspapers Fertilizantes Sinteticos S.A. lfonday, September 28, 1959 in Peru The International Finance Corporation (IFC) an11ounced today a commitment to invest .:;;;i.4 million in Fertilizantes Sintet:Lcos ·s.A. (FERTISA), a new Peruvian co:cpany, to help finance the operation of a pla.nt to produce synthetic amrnonia and its derivatives. The sponsor of the project is Honteoatini of Nilan, Italy. Other shareholders of FERTISA include several prominent Peruvian business and agricultu:. .al groups and individuals, and.Handelsrinanz A.G. (HF) of Zuric;ll.. {@: . ,,financial house whose shareholders are Banca Commerciale Italians., ~- '~~::iil~J·. Milan; Uniofr de Banques Suisses, Zurich; Credit Suisse, Zurich; Hambros ~ank, ·• London; Rothschild Freres, Paris; and First Boston Corporation, New Yorl,c). The ~~?;ISA plant, located at Callao, utilizes Montecatini processes :.~:;/~i; to produce ammonium nitrate and sulfate fertilizers and a technical grade or amnonium nitrate; liquid o:xygen, nitri~ acid, aqueous ammonia solution_a.nd other smaller volume products will also be produced. The plant, which has an approximate capacity of 17,000 tons of fixed nitrogen per year, was engineered and its installation supervised by Hontecatini. Production started in September 1959. The total cost of the project i,s, estimated at ~~12.8 million. This in- 1 ', ., ( / ~ !+. eludes ~5.5 million or share capital,--,:a ..,,4.6 million loan 8.!ld ~}1 • .3 million of additional credits. IFC has arranged new financing for the project totaling $.3.9 million, of which ~2.5 ~illion represents an e~ensiop of maturities or an original medium-term loan by HF, IFC's investment or $1.4 million is providing ~dditional capital foi, completion of the project, including permanent wqrldng capital. It will be fepreseJl'f.ied as follows: $700,000 UcS. dolJ.ar'.··Not.es I\ \\  - 2 - maturing by 1969 and bearing interest at 7% in dollars with contingent interest; and $700,000 u.s. dollar Income Notes maturing between 1970-74, bearing no fixed interest but carrying contingent interest. The contingent interest in each case is related to earnings and is payable in Peruvian soles. In addition, IFC will receive a subscription right to shares of tl-1e company. !FC•s commitment is subject to co~pletion of the necessary legal fonnalities. • •