Summary of Proposed Investment
Project Number
9381
Company Name
BANCO DE GALICIA Y BUENOS AIRES S.A
Date SPI Disclosed
Nov 20, 1998
Country
Argentina
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Dec 30, 1998
Signed : Jan 25, 1999
Invested : Jan 26, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina: Galicia CL |
| Region | Latin America and the Caribbean |
| Sector |
| Project No | 009381 |
| Projected Board Date | December 20, 1998 |
Company NameBanco de Galicia y Buenos Aires S.A.
Technical Partner and/or Major Shareholders
Banco de Galicia ("Galicia") is one of the largest privately-owned banks in Argentina in terms of assets, liabilities and branch network size. At June 30, 1998 Galicia had total assets of US$13 billion, total deposits over US$7 billion, and equity of US$1.1 billion. During the 1998 fiscal year, Galicia recorded a net income of US$114 million. Galicia’s principal shareholders are the Escasany, Ayerza and Braun families who together own 51.8% of the bank and have management control. About 31% of the shares are listed as ADR’s on the New York stock exchange.
Project Cost Including proposed IFC investment
Up to US$100 million, of which up to US$50 million would be for IFC''s own account.
Location of project and Description of site
Argentina.
Description of Company and Purpose of Project
The project consists of a syndicated credit line of up to US$100 million (IFC A Loan of up to US$50 million and IFC B Loan of up to US$50 million) for onlending to middle-market companies.
Environmental Category and Issues
This is a Financial Intermediary (FI) Tier 2 project according to IFC’s environmental review procedure. Galicia will be required to undertake an environmental review of each subproject and use best efforts to ensure that subprojects comply with Argentine environmental, health and safety legislation, IFC environmental and social safeguard policies, and, if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess Galicia’s capability to carry out environmental reviews. Galicia must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.
| Date SPI sent to InfoShop | November 20, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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