IFC in Washington, D.C.:
Lotte Pang
Phone: +1 (202) 758-4290
E-mail: Lpang@ifc.org

Adriana Gomez
Phone:+1 (202) 458-5204
E-mail: Agomez@ifc.org


Washington, D.C., July 15, 2008—IFC, a member of the World Bank Group, today announced that it will provide debt financing and acquire an equity stake in Corporación Interamericana para el Financiamiento de Infraestructura (CIFI), a nonbank financial institution that funds small and midsize infrastructure projects in Latin America and the Caribbean. IFC’s investment will boost access to finance for such projects, helping develop infrastructure in the region.    

IFC’s investment consists of a $20 million loan and a $9.9 million equity investment. IFC will acquire existing shares from such shareholders as the Inter-American Investment Corporation, which will retain shareholding in CIFI, and the Republic Finance and Merchant Bank. Other institutions, including Caja de Ahorros y Monte de Piedad de Madrid (Caja Madrid), Cordiant Capital, Caixa Geral de Depositos, Intesa Sanpaolo, and BPD Bank, will provide additional loans totaling $48.5 million.

Roldan Trujillo, General Manager and CEO of CIFI, said, “We are pleased to welcome IFC as an investor and shareholder in our institution, alongside other multilateral financial institutions and leading European and regional commercial banks.  We believe that IFC’s presence will be important to supporting our growth strategy.”

Atul Mehta, IFC Director for Latin America and the Caribbean, said, “We are delighted to partner with CIFI, which has a complementary focus to that of IFC for the development of infrastructure in Latin America and the Caribbean.  CIFI has developed an impressive track record by providing incremental long-term financing for small and medium infrastructure projects.”

Jacques Rogozinski, General Manager of the Inter-American Investment Corporation, said, “We are proud to see how CIFI has outgrown our expectations since we jointly created it in 2001 with Caja Madrid. We feel our mission has been partially accomplished and we are confident that CIFI, with the strong support from the IFC, will achieve new and bigger milestones. IIC and IFC share the same commitment to the development of smaller private companies in the region and we look forward to developing a strong relationship with IFC to meet this objective.”  

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
 
About IFC in Latin America and the Caribbean
IFC's strategy in Latin America and the Caribbean focuses on improving the business environment; broadening access to finance, especially for micro, small, and medium enterprises; and encouraging the sustainable development of infrastructure through innovative public-private partnerships. IFC seeks to partner with companies over the long-term, helping them compete globally and set benchmarks for responsible business practices. Other sectors of special focus include agribusiness, manufacturing, health, and education. As of March 2008, IFC's committed portfolio in the region was $7.6 billion, with an additional $2.9 billion in syndications.

About Corporación Interamericana para el Financiamiento de Infraestructura, S.A.
CIFI was established in 2001 as an initiative of Caja Madrid, the second largest Spanish savings bank, and the Inter-American Investment Corporation.  The remaining shareholders are regional commercial banks and multilateral institutions.  Its exclusive focus on infrastructure makes CIFI a unique financial institution in the region.  Almost two thirds of CIFI’s historical portfolio has been invested in the smaller countries of the region (i.e. Central America, the Caribbean and the Andean Region), including investments in Honduras and Nicaragua (IDA countries), as well as in Belize, Dominican Republic, St Lucia, Ecuador and Bolivia

About the Inter-American Investment Corporation
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.