Announcement of IFC Investment in Electromanufacturas, S.A. in Colombia on August 23, 1961

(', ,~· . (1 \! INTERNATIONAL FINANCE CORPORATION • 1818 H STREET, N.W., WASHINGTON 2!S, 0. C. TELEPHONE: EXECUTIVE3-6360 0 PRESS RELEASE NO. 58 For Release SUBJECT: IFC Investment in A.M. Newspapers Electroma~ufacturas, S.A. Wednesday, August 23, 1961 in Colombia The Int~~national Finance Corporation (IFC) announced today a commit- ment to invest US $500,000 in Electromanufactura.s, S.A. ~o: Bogota, Colombia to help finance an expansion of electrical equipment manufacturing. Since 1958 EMSA ha~ been producing welding electrodes under license from Westinghouse Electric International Company. Through a recently formed subsidiary, Electroindustrias, S.A., they will produce a new line includi~g ( such items as fuse cutouts, lightning arrestors, capacitors, and welding • V equipment. Some of these ar~ already in limited production. ErrlSA is controlled by a group of prominent Colombian businessmen and firms. Dr. Eduardo Cuellar is President, Dr. Carlos Vasquez Gomez is General Manager. Total cost of the expansion is estimated at t890,000 for new buildings, equipment, and working capital. The financing required in addition to the ;1 IFC investment is being provided by shareholders .. The IFC investment of ')500,000 will be repayable partly in U.S. dollars and partly in Colombian pesos. It w.i.11 be represented by unsecured notes yielding 8% interest. Tb~ dollar notes will mature between 1965 and 1968; ' . the peso notes, between 1968 and 1970. IFC will also receive an option to purchase shares in the parent company. • The IFC commitment is subject to completion of the necessary legal requirements.