Beijing, China, February 4, 2002
—The International Finance Corporation will provide US$11 million to CSRC China Corporation to modernize and expand its carbon black plant located in Maanshan city, Anhui Province, People’s Republic of China.
IFC’s financing, which consists of an equity investment of $2 million and a loan of $9 million, will help build a sustainable world-class carbon black enterprise that will operate according to international standards of operation and corporate governance. The Industrial and Commercial Bank of China (ICBC) will also join in this investment by providing a parallel loan of $5 million equivalent.
IFC’s Director of Oil, Gas and Chemicals, Mr. Rashad Kaldany said, “IFC’s investment in CSRC China Corporation comes at an important time for China given its recent entry into the WTO. Our goal is to create a sustainable and internationally competitive private enterprise with good corporate governance and sound management systems. IFC welcomes ICBC’s participation in this project, which demonstrates the positive impact that cooperation between Chinese and international banks can have in supporting private sector development. We look forward to further collaboration with local banks to catalyze investment in China’s growing private sector.”
CSRC China Corporation was set up in 2000 through an acquisition of existing assets from Maanshan Golden Star Group, a state-owned enterprise. It is currently owned by China Synthetic Rubber Corporation, the world’s fourth largest supplier of carbon black.
IFC’s mission 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, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through the close of the last fiscal year on June 30, 2001, IFC committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC’s committed portfolio at the end of FY01 was $14.3 billion.