Summary of Proposed Investment
Project Number
7345
Company Name
BANCO DE GALICIA Y BUENOS AIRES S.A
Date SPI Disclosed
Jan 11, 1996
Country
Argentina
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Mar 21, 1996
Signed : Jul 13, 1996
Invested : Jul 23, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina:Banco de Galicia y Buenos Aires S.A. |
| Region | Latin America and the Caribbean |
SectorFinancial Services
Project No007345
Projected Board DateFebruary 15, 1996
Company NameBanco de Galicia y Buenos Aires S.A.
Technical Partner and/or Major Sponsor
Banco de Galicia y Buenos Aires S.A. (“Galicia”) and Dresdner Bank (“Dresdner”) as fronting bank for the Letter of Credit.
Project Cost Including proposed IFC investment
Total Project Cost: US$230 Million, IFC loan US$30 million
Location of Company
Buenos Aires, Argentina
Description of Company and Purpose of Project
IFC Loan and structured US Commercial Paper Facility. The project involves the structuring of a US$230 million funding package in the form of an IFC A and B Loan for Galicia. The US$30 million IFC A Loan would have a term of eight years including a three year grace period. It would be used to provide longer term financing to middle market private sector Argentine companies for projects involving consolidations, modernization, expansion and export-related growth. The B Loan would be for the account of participants and would comprise the proceeds of a three-year structured US commercial paper program which is expected to be up to US$200 million and which would be an irrevocable direct-pay letter of credit to be provided by the fronting bank. It would be used to develop Galicia’s local debt underwriting and industrial finance operations for private sector companies in Argentina.
Environmental Category and Issues
This is an environmental review category FI project. Galicia will be required to undertake an environmental review of each subproject. IFC will assess Galicia’s capability to carry out environmental reviews.
| Date SPI sent to PIC | January 11, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
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