28558 - LAPCO- Solid

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

28558

Company Name

Grupo Solid (Guatemala) S.A.

Date SPI Disclosed

Feb 10, 2010

Country

Guatemala

Industry

Manufacturing

Projected Board Date

Mar 15, 2010

Status

Completed

Sector

Paint and Adhesives

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : May 17, 2010
Signed : May 21, 2010
Invested : Aug 13, 2010

Project Description

Latin America Paint Corporation (LAPCO or the “Company”) is a holding company that owns paint manufacturing and distribution units in Central America. The proposed investment will modernize and expand the existing manufacturing operations in Guatemala and strengthen the distribution network in the Central American region.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

Development Impact

The development impact of the project includes: - Introduce modern technologies which will enable LAPCO to produce better quality products at lower costs; - Strengthen LAPCO’s distribution centers in Central America leading to increased economies of scale and reduced negative impact of cyclicality. - Reduce market risk with a geographically diversified revenue stream; - Grow the industrial base of the region and diversify the economy of the country; - Create direct job opportunities, for about 240 direct employees, who will benefit from LAPCO’s well developed staff compensation package including training and medical insurance schemes; - The plant construction project will generated around 500 indirect jobs; - Introduce best practice environmental and social standards.

IFC’s expected additionality includes: - obtain long term funding important for the successful implementation of the company’s strategy. - strengthen its regional presence through South-South investments, important for improving the stability of the region by strengthening the cross border cooperation and regional economic growth; - sharing its global sector expertise and experience which has helped strengthen the project fundamentals; -IFC’s presence which will bring comfort to the co-investors, in light of the recent economic downturn and the long term financing adapted to the nature of the investment; - IFC’s participation and expertise will contribute to the realization of an investment program that meets World Bank Group and country standards.

This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Key environmental and social issues identified during the appraisal include the following:
Corporate environmental and social management capacity
Emergency preparedness and response
Handling, storage and disposal of hazardous materials
Construction and management of the new plant, including operational safety
Use of energy, water and resources
Wastewater reduction, treatment and disposal
Labor and working conditions, and
Occupational health and safety.

Please refer to the Environmental and Social Review Summary (ESRS) for further information.

Contacts

For Inquiries About the Project, Contact

To contact the project company, please write to: Yara ArguetaExecutive PresidentGRUPO SOLID, S.A.Nuevas Oficinas Centrales12 calle 1-25 zona 10, Edificio Géminis 10, Torre Sur, Of. 1802Telephone: 502-23206262 E-mail: yara.argueta@gruposolid.com,

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: 202-974-4384E Mail: Webmaster

Local Access of Project Documentation

Yara ArguetaExecutive PresidentGRUPO SOLID, S.A.Nuevas Oficinas Centrales12 calle 1-25 zona 10, Edificio Géminis 10, Torre Sur, Of. 1802Telephone: 502-23206262 E-mail: yara.argueta@gruposolid.com,

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer