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| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
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| Project number | 20177 |
| Project name | LanChile |
| Country | Latin America Region |
| Sector | Transportation And Warehousing |
| Department | Infrastructure |
| Company name | Lan Chile S.A. |
| Environmental category | B |
| Date SPI disclosed | February 7, 2003 |
| Projected board date | March 10, 2002 |
| Status | Completed |
| Previous Events | Signed: June 30, 2003
Approved: June 19, 2003 |
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| Project sponsor and major shareholders of project company |
| Lan Chile S.A. (LanChile, or the company) is principally owned by four shareholders (families) which collectively hold 83.2% of the company while the rest is held by the investors abroad (5.4%) and the public (11.4%). These four shareholders include the Cueto Group (32.3%), the Pinera Group (27.2%), the Hirmas Group (15.9%), and the Eblen Group (7.8%). Its common stock is listed on the Santiago Stock Exchange and the Chilean Electronic Stock Exchange; and its American Depository Receipts are traded on the New York Stock Exchange. |
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| Total project cost and proposed IFC investment |
| The proposed IFC investment is a 3-year credit line of $30 million to strengthen the long-term working capital position of LanChile. |
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| Location of project and description of site |
| LanChile is headquartered in Santiago, Chile and, with its code-share arrangements and affiliated airlines, the company serves 15 destinations in Chile, eight destinations in Peru, 17 destinations in Latin America, 25 in North America, 8 destinations in Europe and 4 in the South Pacific. |
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| Description of company and purpose of project |
Together with its subsidiary and associate companies including Lan Peru and Lan Ecuador, LanChile is a leading provider of domestic and international passenger and cargo air services in Latin America. Currently, LanChile operates 46 passenger aircraft and 10 cargo freighters. The company is a member of Oneworld, one of the major global airlines alliances, and has code share agreements with several other airlines.
Through its cargo services, LanChile contributes significantly to the region’s trade and economic development. It enables the export of perishable products including seafood, flowers and fruits from Chile, Ecuador, Colombia and other countries in the region while facilitating the import of high value products such as computers, cellular phones and vehicle spare parts into Latin America. Through the proposed investment, IFC will be providing financing at a time when the global airline industry (and particularly the Latin American airlines) is going through unprecedented difficulties resulting from the events of September 11, the economic crisis in Argentina and the general economic slowdown in the region.
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| Environmental and social issues - Category B |
This is a category B project according to IFC’s environmental and social review procedure. The following potential environmental, health, and safety impacts of the project were analyzed: flight operations safety; maintenance-related hazardous materials, effluents, and wastes management; dangerous cargo handling; aircraft noise and emissions controls; employee health and safety, including workplace exposures to chemicals; and environmental, health and safety (EHS) management systems. LanChile has presented plans to address these issues to ensure that they will operate in a manner so as its activities will comply with applicable host country laws and regulations and current World Bank requirements.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
| Spanish translations of the environmental documents are posted at LanChile’s website (www.lanchile.com), the LanChile’s sales office located at the Arturo Merino Benitez International Airport in Santiago, Chile, and the lobby of LanChile’s head office located at Av. Americo Vespucio 901, Renca, Santiago, Chile. |
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| To contact the project company, please write to: |
Andres Bianchi U., Head of Investor Relations
Lan Chile S.A.
Av. Americo Vespucio 901
Renca, Santiago, Chile
Phone: (562) 565-6812
Fax: (562) 565-2527
Email: abianchiu@lanchile.cl |
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