Washington D.C., June 27, 2003—
The International Finance Corporation, the private sector arm of the World Bank Group, has signed a $40 million loan agreement with Calgary-based Niko Resources Limited to support the expansion of its production base in the eastern state of Gujarat, India. This investment is the first for IFC in the Indian petroleum sector in several years.
Niko was one of the first private companies to operate in India’s petroleum sector after the government took steps to deregulate the market in the 1990s. Today, Niko generates 99% of its revenues from its Indian operations and has over 80% of its asset base located in the country. In recent years India has experienced a shortage of natural gas due to its increasing industrialization and rising demand for power. Niko’s expansion will more than double its production of natural gas and enable it to supply a larger industrial customer base in Gujarat.
According to Mr. Rashad R. Kaldany, IFC director for oil, gas, mining and chemicals: “Niko’s commitment to the Indian petroleum sector over the years has been a profitable investment for the company but it has also has helped boost the prospects for further private sector investment in oil and gas projects. IFC is glad to have a role in supporting the development of the petroleum sector in India.”
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets,
helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.
