WASHINGTON, D.C, June 29 -- The International Finance Corporation (IFC) has approved a US$29.2 million financing package to Crescent Greenwood Limited (CGL) in the form of loans of US$26.1 million, including US$10 million to be syndicated with commercial banks, and equity of US$3.1 million, to help finance the construction of an integrated denim manufacturing plant in Faisalabad. The project is a joint venture between Crescent Textile Mills of Pakistan and Greenwood Mills Inc. of the United States. The local sponsor, Crescent Textile, was established in 1953 and is one of Pakistan's leading manufacturers of yarn and cloth. Greenwood, which will provide long-term technical know-how and marketing support to the project is the fourth largest denim manufacturer, the largest washer of denim garments, and one of the largest grey cloth manufacturers in the United States. In addition to Crescent's 34% shareholding and Greenwood's 32%, IFC will take up 10% of the shares. Other financial institutions will take up 7.5%,
and a public offer for the balance of the shareholding is planned within 12 months. CGL is projected to commence production in 1995 and its output will be exported to Europe and Asia. Greenwood's investment in the project is its first in Asia and will be Pakistan's largest foreign investment to date in the textile sector. "This constitutes a major breakthrough for Pakistan in its efforts to promote direct foreign investment in the country," commented AndrÈ Hovaguimian, Director of IFC's Investment Department for the region. The project will generate substantial foreign exchange earnings for Pakistan as well as creating direct employment for 2,800 people. IFC, the private sector member of the World Bank Group, is the largest multilateral source of direct project financing for private sector ventures in developing countries.
