Beijing, June 23, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, today agreed to invest $19.5 million ($1.5 million equity and $18 million loan) in Ningxia Darong Chemicals and Metallurgy Company. The financing will support the Company’s expansion of its calcium cyanamide and dicyandiamide production capacities.
Calcium cyanamide is a versatile chemical product that can be used as a fertilizer and an intermediary for high-margin fine chemicals such as hydrogen cyanamide and dicyandiamide. Located in Ningxia, the heart of China’s northwest region, Darong utilizes the region’s abundant coal, limestone and electricity to achieve considerable cost advantage over other domestic and international producers, and is the largest calcium cyanamide producer and exporter in China.
“IFC’s investment comes at an important phase of the Company’s development. The investment will increase Darong’s economies of scale and further strengthen its competitive position as a low cost producer and high quality supplier to the global market,” said Rashad-Rudolf Kaldany, IFC Director for Oil, Gas, Mining and Chemicals investments. “IFC is also working with Darong to adopt higher environmental, safety and occupational health standards in its strive to become a global leader in its industry,” he added.
“This investment highlights IFC’s commitment to China’s private sector development in the remote northwest region that is overlooked by most foreign investors,” said Javed Hamid, IFC’s Director for East Asia and the Pacific.
“We welcome IFC as one of our shareholders,” said Mr. Zhu Zhenlin, Darong’s Chairman and CEO. “Partnership with IFC will allow us to grow Darong into a world class company.”
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 $16.7 billion for its own account and $6.6 billion held for participants in loan syndications.
