World Bank Unit to Invest Up to $30M in Colombia's O&G Sector
The International Finance Corporation, the private sector arm of the World Bank Group, signed agreements with Kappa Energy Colombia Ltd, subsidiary of oil and gas group, Kappa Energy Holdings (BVI) for a debt facility of $20 million and the option for an equity investment of up to $10 million in the company to support its continued growth.
Kappa and IFC share a commitment to sustainable development. IFC looks forward to supporting Kappa's continued growth in Colombia and the region. Whilst Kappa is still at an early growth stage, IFC has seen substantial progress on implementing best practice environmental and social programs, financial systems and corporate governance.
Roberto Albisetti, IFC Country Manager for Colombia and the Andean Region, noted, "IFC is committed to supporting companies like Kappa, with a strong track record and a commitment to implementing best practices in the environmental and social sectors. IFC looks forward to supporting Kappa's continued growth in Colombia and the region."
While Kappa is still at an early growth stage, IFC has seen substantial progress on implementing best practice environmental and social programs, financial systems and corporate governance standards.
The CEO of Kappa Energy Colombia Ltd, said, "This is the beginning of a long relationship with IFC. We look forward to continuing work on this project and to discussing more projects with IFC as we expand in the country and across the region."
Kappa has been operating in Colombia since 1997 and holds exploration and production licenses. Its main production assets are the Abanico oil field in the upper Magdalena Valley and the Cerrito gas field in the Catatumbo Basin near the city of Cucuta.
IFC in Colombia
IFC's total portfolio in Colombia as of December 2006 was over $506 million. Since Colombia became a member of the IFC in 1956, the Corporation has provided $1.7 billion to the country's private sector, including syndicated loans for a total of $500 million.
IFC's strategy for Colombia focuses on increasing support to sectors that are central to the country's financial development within the framework of free trade agreements. This includes the financing of infrastructure projects involving public-private partnerships, such as the expansion of ports, roads, and airports, as well as support to logistics companies. IFC also aims to finance Colombian oil and gas companies, in particular those looking to expand across the region.
IFC is the private sector arm of the World Bank Group and promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to improve their lives. Over the past 50 years, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries.
- Pacific Rubiales Grabs Colombian O&G Company for $168MM (Jul 08)
- Loon Announced Positive Results for Delta-1 Well Tests (Jun 16)
- Black Rock Hits Oil with Acacia Este 2 in Colombia (Mar 04)