International Finance Corp.
The International Finance Corp., the World Bank affiliate for investment in the private sector of developing countries, has agreed to assist in the restructuring of the leading textile and shoe manufacturer in Argentina.
IFC recently approved a $14 million loan to Alpargatas SAIC, whose performance has been hindered by domestic economic conditions, the bank said.
Of the $14 million, $4 million is for the account of an international group of banks composed of Arab Latin American Bank, Morgan Guaranty Trust Co. and others.
Other loans for the $80 million restructuring are being provided by foreign commercial banks ($31 million) and local banks ($20 million). In addition, the company plans to issue $10 million in preferred stock and reschedule $5 million in debt.
The project is consistent with IFC's policy of assisting restructuring of companies hampered by difficult economic conditions.
The IFC announced plans to raise $44.7 million through the placement of bonds in German capital markets.
The offering, the agency's second in Germany, is the result of the German Bundesbank's recent reduction in its discount rate, said IFC Director of Finance and Planning Richard Frank.
"The borrowing will enable IFC to further lower its cost of borrowing and reduce lending rates to private enterprises and joint ventures in developing member countries who need deutsche-mark financing to purchase goods and services to carry out their projects," he said. Inter-American Development Bank
The Inter-American Development Bank announced that Colombia has become the 16th member of the international financial institution to ratify the Inter-American Investment Corp., an affiliate of the IADB designed to promote economic growth in Latin American countries by assisting small- and medium-size private enterprises.
The ratification brings the new organization very near final approval. The organization needs to be ratified by member countries whose subscriptions comprise at least two-thirds of all subscriptions. The Colombian ratification brings that number to 60.9 percent.