Loan agreement for US$25 million signed with Soboce

(La Paz, July 3, 2006).- The Andean Development Corporation signed a US$25-million loan agreement with Sociedad Boliviana de Cemento (SOBOCE S.A.) in a financial structure in which Banco Mercantil S.A., Banco Nacional de Bolivia S.A. and Banco BISA also participated with an additional US$19.5 million. The funds are to be used to strengthen the cement company’s growth strategy and optimize the conditions of its existing liabilities.

CAF considers that one of its primary activities is to support the private productive sector, mindful of its importance as generator of employment and investments, promoter of trade, with a significant role in technology and knowledge transfers. In this role, the productive sector becomes a key ally in generating job opportunities, creating wealth, combating poverty and raising the standard of living of the population.

CAF’s relations with the private sector are based on two fundamental principles: supplementing the actions of the agents in the financial markets and acting as catalyst for financing and international investment.

Directly or indirectly, CAF now reaches all levels of business from large companies, such as SOBOCE, to micro and small enterprises through local financial institutions.

The relation between CAF and SOBOCE dates from the 1990s when US$25 million was financed through a syndicated loan for expansion of the Viacha plant.

In the area of corporate social responsibility, the local version of the Culture for Development project was started two years ago. This is a joint effort between the communities of Tiwanaku, Viacha, Lake Titicaca and SOBOCE and CAF, with the objective of recovering the culture of the region and developing tourism for the benefit of the communities.