Summary of Proposed Investment
Project Number
24833
Company Name
Randon S.A. Implementos e Participacoes.
Date SPI Disclosed
Feb 20, 2007
Country
Brazil
Industry
Manufacturing
Projected Board Date
Apr 3, 2006
Status
Completed
Sector
Motor Vehicle Parts
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jun 19, 2007
Signed : Jun 26, 2007
Invested : Feb 1, 2008
Project Description
The Randon Group (the Randon Group) is a medium-sized Brazilian industrial group and a good existing IFC client. The Randon Group is Brazil’s leading producer of trailers mainly for trucks and rail transportation, and it also manufactures automotive components, including friction materials for brakes.
The Randon Group has approached IFC with a request for financing of an investment program that will expand and modernize the production capacity of its operations. The project will be implemented during 2005-2009, and its cost is approximately $350 million.
IFC has been requested to provide loans of up to $35 million for two specific project items to be carried out by IFC’s existing borrowers as follows:
- up to $25 million to Randon S.A. Implementos e Participações (Randon); and
- up to $10 million to Fras-le S.A. (Fras-le). Both Randon and Fras-le are listed on BOVESPA, the Sao Paulo stock exchange, and Randon has adhered to Level I standards of corporate governance.
The proposed new investment will complement IFC’s existing exposure to the Randon Group, which has solid fundamentals and is managed conservatively by the founder family and a professional management team.
The Randon Group has approached IFC with a request for financing of an investment program that will expand and modernize the production capacity of its operations. The project will be implemented during 2005-2009, and its cost is approximately $350 million.
IFC has been requested to provide loans of up to $35 million for two specific project items to be carried out by IFC’s existing borrowers as follows:
- up to $25 million to Randon S.A. Implementos e Participações (Randon); and
- up to $10 million to Fras-le S.A. (Fras-le). Both Randon and Fras-le are listed on BOVESPA, the Sao Paulo stock exchange, and Randon has adhered to Level I standards of corporate governance.
The proposed new investment will complement IFC’s existing exposure to the Randon Group, which has solid fundamentals and is managed conservatively by the founder family and a professional management team.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Astor Milton Schmitt, CFO
Randon S.A. Implementos e Participacoes
Av. Abramo Randon, 770 – Interlagos
95055-010
Caxias do Sul – RS, Brazil
WEbsite: www.randon.com.br
Location of Environmental Documents:
Environmental Documents are available on the company’s website and at the its principal office at the following location:
Av. Abramo Randon, 770 – Interlagos
95055-010
Caxias do Sul – RS, Brazil
Randon S.A. Implementos e Participacoes
Av. Abramo Randon, 770 – Interlagos
95055-010
Caxias do Sul – RS, Brazil
WEbsite: www.randon.com.br
Location of Environmental Documents:
Environmental Documents are available on the company’s website and at the its principal office at the following location:
Av. Abramo Randon, 770 – Interlagos
95055-010
Caxias do Sul – RS, Brazil
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
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster