Alpargatas S.A.I.C - CP Program

completed

Summary Of Project Information (SPI)Project NameArgentina-Alpargatas CPRegionLatin America and CaribbeanSectorProject No007021Projected Board DateSeptember 29, 1995Company NameAlpargatas S.A.I.C.Technical Partner and/or Major Shareholders The Company’s largest shareholders are Grupo San Remigio and Grupo Roberts. Greenwood Denim Mills owns a 20% share in the Company’s textile business, and Alpargatas manufactures athletic shoes under license and in joint venture with Nike.Project Cost Including proposed IFC investment Textile Capital Expenditures US$50 million Financial Restructuring US$120 million Total Project Cost US$170 million IFC Financing: A Loan - US$20 million B Loan - up to US$40 million C Loan - up to US$120 millionLocation of project and Description of site The textile division has six plants, five of which are located in Argentina and one of which is located in Uruguay.Description of Company and Purpose of Project Alpargatas is Argentina’s largest producer of textiles and athletic shoes. The Company plans to undertake a capital expenditures program for its textile operations and to restructure shorter-term debt. The main problem currently facing the Company is financial, as credit lines have become extremely difficult to revolve following the Mexican crisis. This project would provide Alpargatas with long-term funding from IFC and participant banks and would enable the Company to achieve stable, credit-supported access to the U.S. commercial paper market. Environmental Category and Issues This is a category “B” project according to IFC’s environmental review procedure. Environmental issues associated with the project include air emissions, liquid effluents and solid wastes. Occupational health and safety issues include fire prevention, and employee exposure to noise, dust and chemical substances. The sponsor will be requested to establish a Corrective Action Plan (CAP) to ensure existing facilities are upgraded, as required, to meet the applicable World Bank guidelines.The is September 8, 1995 from the Public Information Center.Date SPI sent to PIC August 29, 1995For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).