Copamex

completed

Copamex S.A de C.V. (Copamex, or the company) is a leading Mexican producer of paper products for the consumer goods, industrial packaging and printing, and writing (P&W) markets. Located in Monterrey, Copamex is a holding company with 39 subsidiaries (35 in Mexico, 2 in the United States, 1 in Costa Rica and 1 in Nicaragua) of which 36 are wholly-owned and 3 are majority-owned joint ventures. The company is embarking on a debt reduction and refinancing strategy which will enhance its financial flexibility and its ability to compete effectively. As part of this strategy, Copamex has requested IFC’s assistance to refinance part of its long term debt and to fund capital expenditure aimed at rationalizing existing facilities. IFC will help Copamex improve its financial profile in order for the company to become a stronger regional player, better able to compete with multi-nationals. The principal components of the project are as follows: financial restructuring and other measures designed to improve the ability of the company to access national and international sources of finance on competitive terms; rationalization of existing facilities; and measures to improve corporate governance and environmental management and enhance the social impact of the company.