Announcement of IFC Raising Additional Multi-Currency Financing for Argentine Petrochemicals Venture November 7, 1985

Thursda-, .ovember 7, 1985 Don Roessner Press Ralease No. 86/13 (202) 676-039L IFC RAISES ADDITIONAL MULTI-CURRENCY FINANCING FOR ARGENTINE PETROCHEMICALS VENTURE The International Finance Corporation (IFC) has approved a multi-currency investment of up to $24 million equivalent in Petroquimica Cuyo S.A.I.C. -- a new, 40,000 metric tons-a-year polypropylene plant to be located in the Province of Mendoza, western Argentina. The new facility is comprised of a three tranche currency mix of Deutsche mark, Swiss francs and Austrian shillings and is being placed with a group of European financial institutions consisting of Creditanstalt-Bankverein, Vienna; Hessische Landesbank-Girozentrale, Frankfurt; and Union Bank of Switzerland. IFC is an affiliate of the World Bank and the world's leading international institution supporting the economic growth of developing countries by assisting their private sectors. In December 1983, it approved a first investment of $25 million in loan and equity for Petroquimica Cuyo, which is sponsored by three Argentinian companies: Quitral-Co S.A.I.C., Panamerica de Plasticos S.A.I.C. and Laboratorios Phoenix S.A.I.C. The additional multi-currency financing is being put into place to cover a shortfall in anticipated suppliers' credits and meet a rise in project costs as well as to provide contingency financing. The project is one of the most significant private sector initiatives moving forward in Argentina at this time and is considered an important element in the country's petrochemical industry.