WASHINGTON, D.C., March 11 -- The International Finance Corporation (IFC) has approved an additional $100 million loan for Star Petroleum Refining Co. Ltd. to construct a $1.7 billion oil refinery in Thailand. The additional financing brings IFC's total stake in Star Petroleum to $450 million, the largest debt financing that IFC has ever extended to a project. Under a revised financial plan, IFC's A loan, for its own account, will be increased by $25 million to $100 million and the B loan, for the account of participant banks, by $75 millon to $350 million. Another $100 million will come from a parallel loan provided by commercial banks. The IFC B loan was underwritten by a group of 19 leading international banks and subsequently syndicated to an additional 33 international banks. "The additional investment serves to demonstrate our strong support for the project. It also helps to fill the gap created by a change in the financial structure in a way that is least disruptive to the overall financing of the proj
ect," said Mr. Jean-Philippe Halphen, Director of IFC's Chemicals, Petrochemicals, and Fertilizers Department. IFC, along with Barclays Bank PLC, served as financial advisers for the project. When completed in 1996, the refinery will have the capacity to produce 130,000 barrels per day of unleaded gasoline, low-sulfur diesel, and other refined products. Thailand is presently a large net importer of refined petroleum products and the new refinery will help significantly to meet increased domestic demand for clean, high-quality petroleum products complying with Thailand's stringent environmental standards and World Bank guidelines. The project sponsors are Caltex Trading and Transport Corporation, a subsidiary of Caltex Petroleum Corporation, and the Petroleum Authority of Thailand, the state enterprise responsible for managing Thailand's energy resources. 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 countri
es.
