Announcement of IFC and Argentine Investors to Finance New Venture Capital Company February 14, 1986

International Finance Corporation Friday, February 14, 1986 Don Roessner FOR RELEASE: Press Release No. 86/27 CONTACT: (202) 676-0394 IFC, ARGENTINE INVESTORS FINANCE NEW VENTURE CAPITAL COMPANY The International Finance Corporation (IFC) is joining Argentine investors to establish an up to $10 million venture capital fund, and a management company, to invest principally in medium-size Argentine companies and a few new ventures -- focusing on firms that need additional capital while restructuring. IFC, which is the World Bank affiliate that assists developing countries by supporting their private sectors, is investing $2.05 million in equity in the fund and in the management company, jointly designated as Inversiones Industriales Venture Capital Project (IIVCA). The major Argentine sponsors, who initially will be providing more than $3 million in equity, are Banco Roberts S.A., a leading bank in capital market operations; La Buenos Aires Compania de Seguros S.A., the largest private insurance company in Argentina; Agustin Rocca y Compania - Sociedad Anonima, Inversora y Financiera, a diversified holding company with investments in -teel and other industrial sectors; and Bunge y Born S.A., a holding company with investments in a number of sectors including food, trading, paint, cans, chemicals and textiles. Argentine industry is facing a shortfall in equity capital and IIVCA aims at helping to alleviate the situation by investing in equity and equity- like instruments. The project will introduce the concept of professional management of risk capital through a specialized management company and also broaden and improve the range of financial services available in the country. The IFC investment is its first in the Argentina financial sector and its eighth in a venture capital type company.