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Nairobi, Kenya, November 19, 2003
—The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will invest up to $5 million in Industrial Promotion Services (Kenya) Ltd., an equity investment company in Kenya. The investment is part of an increase in the share capital of IPS which will permit it to undertake a number of new investments in East Africa. IPS is presently owned 51percent by the Aga Khan Fund for Economic Development (AKFED) and 15 percent by IFC. Under the capital increase, the German Development Company, DEG, will also acquire a stake of 14.5 percent.
“The expansion of IPS will enable it to play an important role in providing equity capital and strategic direction to companies in East Africa. IFC values the contribution that IPS has made to development in the region and looks forward to a fruitful relationship,” said Ms. Haydee Celaya, IFC’s director for Sub-Saharan Africa.
"We are very pleased the shareholders have arranged this expansion, which will enable us to maintain our plans for growth,” said Mr. Lutaf Kassam, IPS managing director. His sentiments were echoed by AKFED executive Mr. Anwar Poonawala, who added, “AKFED values the support of IFC in laying this foundation for IPS to increase its investments in the region.”. “The agreement will meet the development objectives of both organizations,” he added.
Established in 1963, IPS has a portfolio of investments chiefly in the manufacturing, printing and publishing, and agribusiness sectors in East Africa. The capital increase will raise its equity base by almost $30 million and enable it to embark on a program of acquisitions and expansion of its subsidiaries.
The mission of IFC (
www.ifc.org
) 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 US$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.
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