New Delhi, India, Aug. 9, 2004—
The International Finance Corporation, the private sector arm of the World Bank Group, will provide a $10 million loan to Rain Calcining Limited, a petroleum coke plant operator located in Andhra Pradesh, India.
IFC’s financing will support the expansion of the plant’s coke production capacity to 480,000 metric tons per year and modernize its existing production line. The plant has a production capacity of 300,000 metric tons per year and a 52.5 MW co-generation power facility.
IFC’s investment is part of a $29 million financing package, comprising loans from other international financial institutions, including Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) and Nordic Investment Bank (NIB), totaling $19 million.
In 1998, IFC invested in the company’s Greenfield operation, which is now recognized as a major supplier of calcined coke to aluminum smelters worldwide. Calcination is a heat treatment petrochemical process which drives moisture and volatile materials from green petroleum coke and changes the crystal structure. Once calcined, petroleum coke is used as the main carbon source for anodes in aluminum smelting.
Rain Calcining has also has been supplying power through its co-generation facility to customers in the state of Andhra Pradesh, which is deficient in power. In addition, the company collects and reuses fly ash, which it distributes to local artisans to help them make bricks for construction purposes, thereby supporting the local community.
Dimitris Tsitsiragos, IFC Director for South Asia, said, “IFC is pleased to be partnering with FMO, NIB, as well as other Indian financial institutions, including Industrial Development Bank of India to support this transaction, which will help Rain Calcining to be globally competitive and achieve and maintain international environmental standards.”
Rashad Kaldany, IFC Director for Oil, Gas, Mining, and Chemicals, noted, “Rain Calcining is an exemplary case for local companies with respect to good practice in the areas of environmental, health, safety, and community development.”
Rain Calcining’s Managing Director, Mr. Jagan Reddy, added, "We welcome IFC’s partnership in our growth initiatives. After the current expansion, Rain Calcining will become one of the top five global calcining companies. Our investment in facilities, equipment, and personnel gives us an unmatched combination of capacity, growth, and quality, which supports our customers and will contribute to an improvement in stakeholder value.”
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 2003, 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 2003 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
