Approval of a US$ 50 million line of credit for Corporación Aceros Arequipa, S.A.

(Lima, September 24, 2008). The Andean Development Corporation (CAF) has granted a revolving line of credit for US$ 50 million in favor of Corporación Aceros Arequipa, S.A., a steel company engaged mainly in the fabrication and sale of steel products.

This operation seeks to support one of the country’s biggest steel companies with an additional source of financing via a revolving line of credit.

This facility is also intended to accompany the growth of the company’s business while complementing the role of local banks.

“Granting this line of credit will permit the start of a commercial relationship with the company and the possibility of implementing future financing for their upcoming production investments,” said CAF’s Director in Peru, Eleonora Silva Pardo.

Corporación Aceros Arequipa S.A. (CAASA) is a company of renowned prestige with more than 40 years in the business. With two production plants in Pisco and Arequipa, the company engages in the production and sale of “long” (not-flat) products, such as rebar for construction, wire rods, and smooth bars; in addition, the company markets flat products, which it imports. In recent years, CAASA has demonstrated outstanding performance in (i) its highly competitive products; (ii) its excellent production capacity, reflected in its versatile technology; (iii) its strengthened distribution network; and (iv) its financial solidity, which, added to a good management team, provides the company with a highly favorable outlook.