Summary of Proposed Investment
Project Number
9424
Company Name
CORPORACION NACIONAL FINANCIERA S.A.
Date SPI Disclosed
Jan 14, 1999
Country
Colombia
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry FIG LAC & EUR
Environmental Category
FI
Previous Events
Approved : Jun 2, 1999
Signed : Jul 21, 1999
Invested : Sep 2, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Colombia - Corporación Financiera Nacional y Suramericana, S.A. (Corfinsura) |
| Subordinated Mandatory Convertible Loan / Bond and Liquidity Backstop Facility. |
| Region | Latin America and Caribbean |
Sector
Project No009424
Projected Board DateMarch 2, 1999
Company NameCorporación Financiera Nacional y Suramericana, S.A.
Technical Partner and/or Major Shareholders
Corfinsura is the largest Development Finance Corporation(DFC) in Colombia, and has been an IFC client since 1996. Corfinsura belongs to the Sindicato Antioqueño, one of Colombia’s leading business groups. At June 30 1998, Corfinsura’s major shareholders with more than a 5.0% stake each were: Compañía Suramericana de Seguros de Vida S.A., Cemento Argos S.A., Nacional de Chocolates S.A., Banco Industrial Colombiano S.A., and Valkiria Inversiones S.A.
Project Cost Including proposed IFC investment
The project consists of a total funding package of up to US$ 50.0 million with two components:(a) up to US$25 million in equity or a Subordinated Mandatory Convertible Loan/Bond structured to qualify as Tier I capital, and (b) an up to US$25 million, ten-year Liquidity Backstop Facility.
Location of project and Description of site
Republic of Colombia.
Description of Company and Purpose of Project
Corfinsura had total assets of US$1.4 billion, net loans of US$928 million and shareholders’ equity of US$270.3 million at September 30, 1998. Its major business lines include corporate lending, its portfolio of equity investments, and its trading activities. Over time, it has developed investment and merchant banking capabilities, including underwritings, syndications, venture capital, project finance and M&A.
The project''s objective is to strengthen the capital and asset /liability structure of the Company. IFC also plans to assist the Company in developing its strategy and positioning in an increasingly competitive local and regional financial marketplace.
Environmental Category and Issues
This is a Financial Intermediary (FI) Tier 1 project according to IFC''s environmental review procedure. Corfinsura will be required to apply environmental review procedures to relevant operations and to ensure that subprojects comply with Colombian environmental, health and safety legislation and standards. IFC will assess Corfinsura’s capability to carry out environmental reviews.
| Date SPI sent to InfoShop | January 14, 1999 |
“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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