Manila, February 16, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, today announced an agreement to transfer and assign to Polymax Worldwide Limited all IFC rights and interests in loans to Bataan Polyethylene Corp. Polymax is related to the Metro Alliance group, which specializes in chemical production, distribution and logistics in the Philippines.
This transaction provides a means by which a new project sponsor can resume production and maintain employment of workers at the plant. "By achieving this goal, the IFC loan sale should benefit the future of the petrochemical industry and the economy of the Philippines," said Vipul Bhagat, IFC country manager for the Philippines. The plant has not been in operation for the past year.
BPC was commissioned with the support of IFC's financing in August 2000. The plant had total capital cost of over $300 million. It was expected to operate polyethylene facility in Bataan, Philippines with a capacity of 250,000 tons per year. Unfavorable market conditions resulted in BPC's sponsors and shareholders suspending BPC's operations soon after production began.
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 FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.