Randon S.A. Implementos e Participacoes

completed

_x000C_The Randon Group (the Randon Group) is a medium-sized Brazilian industrial group and a good existing IFC client. The Randon Group is Brazil’s leading producer of trailers mainly for trucks and rail transportation, and it also manufactures automotive components, including friction materials for brakes. The Randon Group has approached IFC with a request for financing of an investment program that will expand and modernize the production capacity of its operations. The project will be implemented during 2005-2009, and its cost is approximately $350 million. IFC has been requested to provide loans of up to $35 million for two specific project items to be carried out by IFC’s existing borrowers as follows: - up to $25 million to Randon S.A. Implementos e Participações (Randon); and - up to $10 million to Fras-le S.A. (Fras-le). Both Randon and Fras-le are listed on BOVESPA, the Sao Paulo stock exchange, and Randon has adhered to Level I standards of corporate governance.The proposed new investment will complement IFC’s existing exposure to the Randon Group, which has solid fundamentals and is managed conservatively by the founder family and a professional management team.