WASHINGTON, D.C., June 3 -- The International Finance Corporation (IFC) has signed financing agreements for a long-term loan of US$82.4 million for Caribbean Ispat Ltd., an integrated steel plant in Trinidad and Tobago.
Caribbean Ispat Ltd., which produces wire rods, will use the financing to modernize its facilities and conduct an environmental upgrade to bring the plant into compliance with World Bank environmental standards.
"Since 1994, IFC has worked closely with Caribbean Ispat in identifying the best approaches to optimize the performance of each phase of steel production and to improve the environmental, health, and safety aspects of the mill's facilities," said Helmut Paul, IFC's Director of the Latin America Department. "The modernization program supported by IFC's financing is expected to enable Caribbean Ispat to produce internationally competitive products with lower cash production costs and higher yields."
IFC has arranged a financing package consisting of a loan of US$27.4 million for its own account and a syndicated loan of US$55 million for the account of international commercial banks, including P.T. Bank Rakyat Indonesia, Berliner Bank, Banque Nationale de Paris, and Bank of Nova Scotia. Enterprise Development Ltd., a project finance company in Trinidad associated with IFC, arranged a US$50 million loan from banks and institutional investors in Trinidad and Tobago to help meet part of the purchase price of other plant assets.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
