|Environmental Technologies Industries
|Mexico Environmental Export Market Plan|
|10. Financing Programs and Resources|
Case Study 10.1 Girsa Group
In February 2000, with financing from the World Bank through IFC, Girsa, a Mexican diversified chemicals producer, obtained an investment grade rating that allowed the company to tap U.S. institutional investors for the first time.
IFC provided $105 million toward a $240.6-million project to enable the company to make more specialized products and thereby improve its competitiveness in international markets. The investment included a loan of $45 million from IFC’s own account and a B loan of up to $60 million. The B loan was privately placed by Crédit Suisse First Boston with a group of U.S. insurance companies. Duff and Phelps Credit Rating Company assigned a BBB– rating to the transaction (above Mexico’s sovereign rating at that time) on the basis of Girsa’s underlying credit quality and the preferred creditor status of IFC, which helped mitigate substantially sovereign transfer and convertibility risk.
Girsa is using the financing to modernize, expand, and undertake an investment program to enhance global competitiveness in its business units, which include synthetic rubber, phosphates, consumer products, laminates, polystyrene, carbon black, phenol, and acrylic sheets.
The investment was IFC’s second in Girsa. The first was to finance the company’s efforts to improve its environmental standards, close obsolete plants, and become a more efficient producer.
|City||Technical Assistance from BECC||Typea||Total Cost (millions)||U.S. Subsidies (millions)|
Agua Prieta, Sonora
Puerto Penazco, Sonora
Ensenada, Baja California
Ciudad Acuna, Coahuila
Cuidad Juarez, Chihuahua
Mexicali, Baja California
Piedras Negras, Coahuila
Tijuana, Baja California
San Luis Rio Colorado, Sonora
Tecate, Baja California
Tijuana, Baja California (Ecoparque)
|Total, all projects||2,170,944||434.83||123.65|