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Washington, D.C., May 5, 2000 –
Following is a package of brief announcements about IFC transactions signed in the past month for investments that will support private sector enterprises in the developing world. Packaged deals is a monthly digest of new IFC investments that have not been announced in our regular press releases. More information is available by contacting the Media Relations team listed at the end.
The mission of IFC, part of the World Bank Group, is to promote private sector investment in developing countries, which will 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.
As part of its efforts to help Asian companies recover from economic crisis, IFC has worked closely with PT. South Pacific Viscose (SPV), the leading producer of viscose staple fiber (rayon) in Asia, to restructure the company's debt. The financial restructuring will increase SPV's capital base and extend its loan maturities to optimize cash flow so that the company can maintain its position as a key supplier to the Asian textile industry. SPV supplies about 5 percent of total world demand for viscose staple fiber.
The restructuring of companies, such as SPV, that supply the industries which are key foreign exchange earners, is essential to supporting the recovery of the Indonesian economy. This is IFC's fourth restructuring in Indonesia. IFC also helped PT. Hotel Santika Nusajaya, PT. Semen Andalas and PT. Rimba Partikel Indonesia to undertake financial restructurings.
Lenzing AG of Austria is SPV's largest shareholder and provides management, marketing and technical assistance. Creditors include Deutsche Bank AG (Singapore), Deutsche Bank AG (Jakarta), the Hongkong and Shanghai Banking Corporation Limited (Singapore), HSBC Limited (Jakarta), Bank Austria Creditanstalt AG, Deutsche Investitions-und Entwicklungsgesellschaft (DEG), and IFC.
BRAZIL: CERAMIC TILE COMPANY
IFC will loan US$16 million to Portobello S.A., a mid-sized family-owned company that manufactures ceramic tiles in Tijucas, Santa Catarina State, so that it can produce more high-quality tiles at low cost to consumers. The $40.5 million project will expand operations by building a new porcelain tile plant as well as a new mineral processing unit that is being developed in a joint venture with Minerali Industriali, the market leader for mineral processing in Italy. A new mortar and grout plant will also be established in São Paulo as a joint venture with Custom Building Products, a US-based company. The Portobello Shop franchise will be expanded with an additional 86 stores. As part of the project, the entrepreneurs who will own and manage the chain of Portobello shops will be trained and partly financed by the company. Portobello has introduced a new professional certification in Brazil by extending the curriculum of its school of ceramics to train tile-setting specialists. The company will provide its graduates with financing for their small business needs and give them the opportunity to work as subcontractors for the Portobello shops. Portobello belongs to the Portobello Group, a Brazilian multi-sector group managed by the Cesar Gomes family.
For more information on any of these transactions, please contact one of the following people:
Ludwina Joseph, (202) 473-7700,
AFRICA & ASIA
Jannette Esguerra, (202) 458-5204,
MIDDLE EAST & LATIN AMERICA
Brigid Janssen, (202) 458-4698,
Lana Moriarty, (202) 473-6005,
GENERAL PRESS INFO
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