WASHINGTON, D.C., May 22 -- The International Finance Corporation (IFC) has just signed an agreement to provide up to US$76.35 million for an expansion being undertaken by P.T. KIA Serpih Mas (KSM), a ceramic floor tile manufacturer in Indonesia.
The financing consists of an equity investment of up to US$6.35 million, a loan of up to US$15 million for IFC's own account, and a syndicated loan of up to US$55 million from international commercial banks.
The US$106 million expansion project will allow KSM to modernize its facilities and to increase substantially the range and volume of its products by utilizing the latest ceramic tile production technologies.
"IFC is pleased to be associated with this important segment of Indonesia's construction sector," said Mr. Harold Rosen, Acting Director for IFC's Asia Department and Regional Manager for South East Asia. "IFC's financing demonstrates our continued efforts to help selected Indonesian manufacturers become world class competitive producers".
IFC is the private sector arm of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
