IIC Signs A $6 Million Loan Agreement With Ale Combustiveis, A Brazilian-Owned Fuel Distribution Business

07/03/2002

IIC's loan to ALE is its first to a Brazilian company headquartered in the state of Minas Gerais, helping to decentralize economic activities in Brazil.

BELO HORIZONTE, BRAZIL - The Inter-American Investment Corporation (IIC) signed on July 04, 2002 a $6 million loan agreement with ALE Combustiveis S.A., a Brazilian-owned fuel distribution business. The project consists of expanding the company's fuel distribution network, which is comprised of small and medium-size enterprises that operate gas stations. This expansion will be implemented by acquiring or building 310 environmentally audited gas stations in seven different states in Brazil: Minas Gerais, Goiás, Paraná, Espírito Santo, São Paulo, Rio de Janeiro and Distrito Federal. Once completed in 2004, this project will generate approximately 2,000 new jobs. Of the IIC provided funds, US$2.8 million will be used for environmental protection and US$800,000 for on-lending to small and medium-size companies that will enter into contractual agreements with ALE to operate eligible gas stations. The remaining US$2.4 million will be invested in 85 new gas stations in the interior of the states of Minas Gerais, Goiás, Espírito Santo, Paraná and Distrito Federal. The IIC will also be supporting the training of small entrepreneurs and unskilled workers as the expansion plan includes the construction of six new "postos-escola".

The agreement was signed on July 4, 2002 in Belo Horizonte, Brazil, by the Borrowers, Mr. Claudio José Zattar, Supervising Director and Mr. Edson Miranda de Souza, Director for Administration and Finance, and by the Sponsors and Guarantors, Mr. Sérgio Cavalieri and Mr. Paulo Moraes. The agreement was signed on behalf of the IIC by Mr. Jacques Rogozinski, General Manager.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org