Argentina’S Compañías Asociadas Petroleras S.A. Receives A Loan Of Up To US$8 Million From IIC
05/31/2010Loan proceeds to benefit the oil and mining sector
Washington, D.C. - On June 1, 2010, the Inter-American Investment Corporation (IIC) approved a loan of up to US$8 million to Compañías Asociadas Petroleras S.A. (CAPSA).
CAPSA explores, operates, develops, and produces oil and gas it obtains from its own oil fields.
CAPSA will use the IIC loan proceeds to finance capital investments for developing oil wells and to refinance liabilities in order to free up cash for capital investments. With this operation, the IIC will support part of the program to develop CAPSA’s oil reserves by financing investments in projects using secondary and tertiary oil recovery techniques. The IIC will thus help CAPSA consolidate its position as a player in the Argentine oil sector, which is key to job creation. CAPSA will receive medium-term financing, which will enable the company to improve its financial profile.
According to Ana María Orellana, IIC Senior Investment Officer in charge of the operation, "CAPSA, a small player in the sector with almost 2% of Argentina’s oil production, will use the medium-term financing to develop its oil reserves and increase its annual production, thereby creating jobs in the country."
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing 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 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Ana María Orellana (in Chile)
Telephone: + (562) 431-3707