WASHINGTON, D.C., May 22 -- The International Finance Corporation (IFC) recently signed an agreement to provide up to US$112.35 million for an expansion being undertaken by P.T. KIA Keramik Mas (KKM), a ceramic roof tile manufacturer in Indonesia.
The US$174 million expansion is part of a 5-year strategic plan that will assist KKM to become a world class ceramic tile producer, upgrade its technology, and introduce a wider range of products.
"The project will make available an affordable, good quality, basic construction product to the majority of the Indonesian population," said Mr. Peter Cook, Director of IFC's Asia Department. "This transaction is a milestone for the Indonesian capital markets, as we were able to raise 10-year limited recourse financing for a local manufacturing company, thus helping to establish a benchmark for similar transactions in the future."
IFC's financing consists of an equity investment of up to US$6.35 million, a loan of up to US$25 million for its own account, and a syndicated loan of up to US$81 million for the account of international commercial banks.
IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.