INTERNATIONAL.FINANCE C ORPQ·RA TION ( 1818 H STR-f;;ET, N.W., WASHINGTON 25, D. C. TELEPHONE: EXECUTIVE 3-6360 PRESS RELEASE NO. 63 SUBJECT: International Finance F1)R RELEASE A.M. 1 Newspapers Co:..1)0.rati on: · Friday, October l2o,· 1961 · Managerr.ent Changes Changes in the management of thP. International Finance Corporation (IFC), an affiliate of the Wo1~ld Bank, have now come into effect. Mr~ Robert L. JJ Garner retired on October 13 and Mr. Eugene R111 Black, Presiden·t · of the World Bank since 1949, assumed the additional post of President of IFC. Mr. Martin·M. Rosen is the new Executive V:d.ce President of IFC. Mr. Rosen 0 was formerly Director of Operations for the Far East in the World Ba*· Mr. J. G. Beevor, who. has been Vice President since 1956, continues in that office. Other principal officers of the IFC are as follows: Acting Director of Investments Neil J. Paterson General Counsel R.B.J. Richards Senior Engineer J. David Dodd Chief Accounting Adviser Charles F. Herrmeyer /] The Offices or Treasurer, Secretary, Director of Administration and Djrector or Iurormation of IFC,are held by the corresponding officers of the ) t.,Torld Bank. I) , liJaE CHAS'1:! MANHATT~N BANK . i , c Relations DepartmAnt Francesco Cantarella New York 15, New York Telephone: LL a-4506 '') FbR WEDNESDAY, OCTOBER 1~, 196~ WITH PHOTO J ,> ]'ina;ncing arrangements have been completed for an iniportant portion of' a $72-million petrochemical complex to be built in Argentina :to supply that country's major needs for synthetic rubber, benzene and chemical intermediates, which are now largely imported, it was announced today by Harold G. Osborn, chairman of the board of PASA, Petroquimica Argentina, S.A. A purchase agreement coveri:!}g $18. 5 million of five to ten year QlJ3,S s B \, • subordinated debentures of PASA, which will undertake the project, has been signed at the offices of Chase International Investment Corpo:ration. Placement of the debentures was arranged by Chase Int ernational and Lazard Freres 1 & Co., each of whom also agre~~ to ac~uire debentures for its ovm account, and a substantial (~,., I) investment in the debentures·is to be made by International Finance Corporation of Washington, D.C. Others who agreed to purchase debentures are: Societe Financiere de Trans- ports c.i·t,rd'Entreprises Industrielles, S.A. (Sofi®); Empresas Electricas Argentinas (Argentine Electric C0mpanies), a Florida cor]?oration ; Keystone Custodian Fund~., Inc.; Transoceanic--AOFC, Ltd.; Philadelphia International Investment Corporation; Morgan Guaranty International Finance Corporation; Chemical Overseas Finance Cor- poration; Bank of London & South America Limited; Investors Trading Co., S.A.; International Holdings Corporation; The American International Insurance Group; J. Henry Schroder Banking Qorporation; and clients of Goldman, Sachs & Co. t-. The debentures are to bear interest at 7i% per annum and are to be ac~.9µ1- ·..~"~ 'I·• panied by detachable warrants to purchase ~pproxim!3,tefy 15% of the PASA common ,,, 2 ·'.~1'he, project is expected to involve the largest ~nvestmen~ of private capital ever made in a new South American industrial project. Preliminary i,1ans p~~the ~ project were announced last:-. January by the five Utii.ted states firms that ~ / ! sponsoring PASA and will initially own all its stock: Continental Oil Company, () Cities Service Company, United States Rubber Company, Fish international Corpo- ration and Witco Chemical Company, Inc. The sponsoring companies intend to offer a portion of the common stock of PASA. to Argentine investors and create a marltet for it as soon after the completion· of construction and the establishment of profitable operations as it is feasible. Proposed capitalization of PASA will consist of $18.5 million cash investment in preferred and common stock by the five sponsors, $30 mi!!ion in,j_·-::--~ f;Lv8 to seven i year Class A debentures to be issued for the purchase of machinery and equipment, I the $18. 5 million Class B subordinated debentures for which agrfJ~ments were signed, plus short-term working capital loans of about $5 million to be arranged by the sponsors. The PASA plant is to be;\ built at San Lorenzo, about 230 miles up the Pa.rana (1: River froni Buenos Aires, and will establish a modern, efficient petrochemical in- du~tq in ~rgentina. According to the sponsors, the net savings in foreign exchange to Argentina are expected to amount to about $29 million a year. The plant is to include a catalytic reformer and units to make benzene, styrene, butadiene and aviation-grade alkylate, SBTI rubber, cis-polybutadiene, and intermediate products including carbon black. The project is expec·i:1~d to employ about 700 people, of whom more than 90% will be Argentinian. The sponsors will provide the initial management staff for PASA,and that company will subsequently tratn the Argentineans for supervis¢TY and operating :positions. PAS.A will also spend a'b9µt $14 million yearly in Argentina for payrolls and raw materials. -*-