| Project description |
| Arcor S.A.I.C. (Arcor or the Company) is a locally-owned company, specialized in the production of sugar confectionery and chocolates, cookies, ice creams and food products, and one of Argentina’s largest exporters and private sector employers. The project entails providing a corporate loan to Arcor to finance part of the company’s long-term working capital needs. |
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| Project sponsor and major shareholders of project company |
| The project sponsor is Arcor, a private locally-owned company founded in 1951. Arcor is owned by Grupo Arcor, a local holding company owned by several local families. Arcor has grown from a local operation in the province of Córdoba into a multinational company, commercializing a well-diversified portfolio of consumer goods. Arcor and its subsidiaries are vertically integrated with industrial operations in the dairy, maize, sugar, and packaging industries, among others. |
| Total project cost and amount and nature of IFC's investment |
| The total project is estimated at $70 million. The proposed investment includes an A Loan of up to $10 million and a C Loan of up to $10 million for IFC’s own account, as well as a B Loan to be syndicated. |
| Location of project and description of site |
| Arcor operates over 40 state-of-the-art facilities throughout Latin America producing sugar confectionery and chocolates, cookies, cardboard, packaging material, corn syrups, and canned foods, among others. |
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| Anticipated development impact of the project |
| The proposed investment further supports a large Argentine-based South-South player which provides direct employment to more than 20,000 people and has increased its tax payments to the government. Arcor’s operations and facilities, most of which are located in the interior of the country (including frontier provinces), act as key drivers of development for its surrounding communities. The Company enhances the competitiveness of the food supply chain, providing financial and/or technical support to farmers, suppliers and distributors. |
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| IFC's expected development contribution |
| The project is in line with IFC’s strategy to contribute to sustainable economic growth by supporting a competitive family-owned company to firm-up its core operations in Argentina and sustain its regional expansion. Arcor operates in a priority sector for Argentina and is largely export-oriented with South-South expansion plans. IFC is uniquely able to support growing companies operating under volatile financial markets. Also, through the B Loan program, IFC will be encouraging commercial banks to provide financing with improved terms. |
| Environmental and social issues - Category C |
This investment is a category C project according to IFC’s Environmental and Social Review Procedure. IFC's review of this renewal of a corporate loan has determined that this investment provides continuing support for a company which is committed to high standards of sustainability and corporate social responsibility. IFC maintains an ongoing dialog with the Company on these matters in conjunction with the existing loans. The new investment will not result in any material change in the environmental and social impacts associated with the project and the covenants and reporting requirements will be extended to cover the proposed investment. The existing project is being supervised regularly, including field visits, and its AMRs are of consistently high quality.
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| For inquiries about the project, contact: |
Project’s company contact:
Gerencia de Relaciones Institucionales
Maipu 1210, Buenos Aires, Argentina
Tel: (54 11) 4310-9500
www.arcor.com.ar |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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