SPAIPA S/A Indústria Brasileira de Bebidas

MIGA insured equity and loans in the expansion of soft drink and beer bottling facilities in the Brazilian states of Paraná and São Paulo. Gribal, S.A., a Uruguayan company, received $4.1 million in coverage against currency transfer risks for its equity investment. MIGA also guaranteed the loans made by Lloyds Bank and The First National Bank of Boston against the risks of currency transfer, expropriation, and war and civil disturbance for $16.1 million. Banco National de Desenvolvimento Economico e Social, the Brazilian development bank, also provided $46.7 million in debt financing.

The project enterprise, SPAIPA S/A Indústria Brasileira de Bebidas, was established in early 1995 as a holding company to consolidate and expand the operations of three Coca-Cola bottling franchises. Soon after, the franchises were merged into SPAIPA, which was transformed into an operating company to produce and distribute soft drinks and beer through 21 bottling and distribution units.

The new investment will be used to install new machinery and equipment, including a bottling line for cans, which will increase production by 50 percent, to 15.4 million cases a month. Increased production and improved distribution will result in lower prices for consumers. Local businesses will benefit from ongoing local procurement, since the investment will purchase most goods and services in Brazil.