Approved $150 million operation for Grupo Empresarial Bavaria

The Andean Development Corporation (CAF) approved at its CXIV Board Meeting a $150-million corporate financing operation for the Grupo Empresarial Bavaria for use in its 2003-2004 investment plan.

CAF Executive President Enrique García said that the operation was in the form of a structured loan, a type of cofinancing that permits the Corporation to attract external funds and fulfill its mission of channeling additional finance into shareholder countries. The CAF´s catalytic role through this type of operation is particularly important at times when the Andean countries have limited access to sources of external financing.

The multinational lender is participating with funds totaling $37.5 million which cover 25% of the operation. The remaining $112.5 million will be provided by a group of international banks in a cofinancing program.

The financing approved today forms part of Bavaria´s strategy of consolidating its existing markets: Panama, Colombia, Ecuador and Peru. "The Corporation is involved in this type of operation given this company´s permanence and interest in the industrial development of Colombia, where it has made a contribution to social development in the cultural, sports and health areas," García said.

The operation has a total duration of five years with a grace period of one and a half years.

CAF signed the first financing agreement with Bavaria in 2001 for $250 million for its business strengthening plan and new investments, under the same modality.