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WASHINGTON, D.C., March 14 -- Mr. Jemal-ud-din Kassum, Vice President, Operations, International Finance Corporation (IFC) will lead a delegation to Australia from March 25 to 29, 1996. The purpose of the visit is to consult with government and industry leaders on initiatives to promote Australian business in the developing countries of the Asia-Pacific region. IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries. The delegation will meet with Australian companies interested in investing in Asia-Pacific to inform them of the investment and technical assistance services IFC provides. They will also meet with financial institutions to describe IFC's loan syndications program that enables banks to make loans in new markets. IFC is optimistic about the broad scope of investment opportunities for Australian companies in emerging markets, which will help in the flow of Australian technology, expertise, and management to the developing world. IFC sees infrastructure, power, mining, construction, agribusiness, financial services, health care, and tourism as potential sectors for investment by Australian firms. Mr. Kassum said, "Because of Australia's geographic proximity to the dynamic Asia-Pacific region, it makes sense for Australian businesses to expand where there is room for growth. IFC is well-positioned to support Australian companies in this expansion through the provision of finance and advice. We are offering services to help businesses go into a country which may be unfamiliar to them and where it is difficult to raise limited recourse project finance. Our key role is to assist medium-sized firms make their first venture into challenging new environments where they need to know how to operate, how to find partners, and how to raise capital. We view Australian companies as good potential partners and seek to be involved in their projects." (more) Press Release No. 96/88, page 2 of 2 Mr. Kassum added, "We can also demonstrate to Australian banks that IFC offers safe, sound banking practices with a good return, and that there is a way for them to lend to ventures in countries where they have not been before but where IFC has the advantage of having worked for some time." To date, IFC has worked with 17 Australian firms who have committed US$322.3 million in loans and equity for 20 IFC projects with a total cost of over US$2.26 billion around the world. In addition, five Australian banks have committed US$89.3 million through 40 participations in IFC projects. IFC has just finalized two deals involving Australian firms in Viet Nam's hotel sector. These are Tosac International Hotel, which involves the expansion of an existing hotel in Haiphong. Tosac is a joint venture with Accor Asia Pacific Limited. The total project cost is US$11.9 million and IFC's financing is US$6.2 million. The second project, a joint venture with Asia Pacific Securities Limited, involves the construction of the Tourane Hotel in Da Nang City. The total project cost is US$23.8 million and IFC's financing is US$14.3 million. Accompanying Mr. Kassum will be Mr. Harold Rosen, Manager, Southeast Asia in IFC's Asia Department. The team will be joined by Mr. Neil Paterson, IFC Adviser, Australasia, and Mr. Richard Pearson, Regional Manager, South Pacific Project Facility (SPPF), both of whom are based in Sydney. The delegation will also meet with senior government officials to discuss Australia's involvement with IFC, especially its support for the SPPF, the Foreign Investment Advisory Service (FIAS), and IFC's Technical Assistance Trust Funds Program. Headquartered in Sydney, the SPPF was created in 1990 in a joint effort led by the governments of Australia, New Zealand, Canada, and Japan to help South Pacific entrepreneurs promote and set up viable small and medium-sized enterprises in IFC's nine member countries in the Pacific islands -- Fiji, the Federated States of Micronesia, Kiribati, Marshall Islands, Papua New Guinea, Solomon Islands, Tonga, Vanuatu, and Western Samoa. SPPF is managed by IFC and supports projects with total investment costs amounting to US$5 million. Mr. Kassum will officially open SPPF's new office in Sydney on March 25. To complement SPPF's activities, IFC has also set up the Pacific Islands Investment Fund (PIIF), which invests between US$50,000 and US$300,000 per project in companies in the South Pacific Island countries. PIIF has an office in Queensland. Another service that benefits the Pacific region is the Foreign Investment Advisory Service (FIAS) -- a joint venture between IFC and the World Bank -- that helps developing country governments structure laws and institutions to stimulate foreign direct investment. FIAS has an office in Sydney.
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