Direct loan to Venalum

CAF approved two US$50 million for VENALUM to finance the direct foreign currency costs of acquisition of the equipment, machinery, material supplies and services required to execute the expansion project of this Venezuelan industry.

Prior to this approval by the CAF board in October 1987, VENALUM had signed agreements with various suppliers from the United States, Belgium, Japan, Sweden, Holland, Norway and Spain, and other countries. The CAF loan will also be used to finance some of these agreements.

CAF President Galo Montaño emphasized the importance of this CAF direct loan to Venalum as the highest amount ever granted by the Corporation. “It is an untied loan so the Corporation will use its own funds when it is not possible to apply some of the multiple lines of credit which banks and development organizations around the world have opened in CAF’s favor."

The CAF finance for the Venalum project will be used to install a new line of cells in two parallel rooms with an approximate area of 28,000 m² each and to increase primary aluminum production for export by 170,000 tons.