Announcement of Investment in Two Private Financial Institutions in Colombia on September 8, 1961

.,. . ·· INTERNATIONAL . ~18 H STREET, FINANCE N.W., WASHINGTON 25. D'. C. CORPORATION \\ -TE!..EPHONE: EXECUTIVE 3-6360 PRESS REL.EASE NO. 60 For Release S OBJECT : Investment in Two Private A. M. Newspapers Financial Institutions in Friday, September B, 1961 ColQmbia The International Finance Corporation {IFC) announced today investment commitments totaling US ~4 million - ~~2 million each in two Colombian private financing institutions, the Coryoracion Financiera Col~mbiana de Desarrollo I i -. ,' ,"\ t Industrial, ·of Bogota, and the Corppracion Financiera Nacionai; of Medellin. The investment 'is represented by unsecured peso note~ which are fully convertible into shares. I·, They bea.r no fixed interest, but IFC will rece~ve •• interest equal to the dividends paid on capital stock. The notes mature from 1971 to 1973. This will be IFC 1 s first investment in financial in$titutions. The two Colombian corporations were organized in 1958 and 1959 to finance the develop- ment of industry in Colombia by providing medium and long-term capital., and to stimulate the growth of the Colombian capital market. Up to, the present they have engaged primarily in medium-term operations. As a result of the IFC investments, both institutions can now do equity and long-term financing and expand their underwriting ac~ivities. A majority of the stock is held by the country's leading banks, insurance companies, and industrial enterprises, and by individuals. In order to carry out the purposes more effectively, both institutions have agreed to a program which provides for qoncentration on industrial enter- • prises, prudent diversification of investments, and broader ownership by sale of shares or bonds to the public.  - 2 - The investments will ext,end IFC 's area of eff'ectiveness by making IFC :funds available to a wider variety of enterprises, as well as to smaller ••• industrial units than the Corporation has previously found it practical to finance directly. IFC has agreed to provide consultation and technical help on matters or organization and 1lnvestment procedure. The IFC commitments are subject to completion of thEJ necessary legal requirements. • 1) •