Acindar Trade Facility

completed

Summary Of Project Information (SPI)Project NameArgentina-Acindar TFRegionLatin America and CaribbeanSectorProject No007571Projected Board DateJuly 17, 1996Company NameAcindar Industria Argentina de Aceros S.A.Technical Partner and/or Major Shareholders The Acevedo family hold approximately 35% of the Company’s common stock and are the largest group shareholder. The rest of the Company’s stock is publicly traded on the Buenos Aires Stock Exchange.Project Cost Including proposed IFC investment ”A” Loan of US$10 million, “B” Loan of US$70 million, and “C” Loan of US$15 million. The total project cost is US$156 million.Location of project and Description of site The principal steel making facilities of Acindar are at Villa Constitución in Santa Fé province.Description of Company and Purpose of Project Acindar is the largest integrated producer of non-flat steel products in Argentina. The aim of the investment is to help restructure some of the Company’s debt as it faces a refinancing risk with a US$150 million bond issued in 1993. Additional funding will also be provided to allow the final phase of Acindar’s modernization program to proceed.Environmental Category and Issues The proposed finance package is classified as a category “C” project. The modernization project that will also be facilitated by this investment has been previously reviewed and approved as a category “B” project by the environment division. Environmental issues include air emissions, liquid effluents and solid wastes and safety issues include fire protection and emergency response, and employee exposure to chemical substances.Date SPI sent to PIC June 17, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365