Chongqing, June 29, 2005
— The International Finance Corporation, the private sector arm of the World Bank Group, today agreed to provide a $15.75 million loan to Chongqing-based Minsheng Shipping Company. Minsheng is a leading transportation company along the Yangtze River, the principal artery linking the interior of China with the coast. The loan will contribute to the development of a competitive and efficient regional economy in Western China by supporting the development of a local company committed to high standards.
The investment is IFC’s first in Chongqing, highlighting IFC’s strategy of supporting strong businesses outside the coastal regions. and the Chinese government’s efforts to accelerate the development of the interior regions. IFC’s investment will finance the company’s fleet renewal and expansion program, which capitalizes on the increasing levels of trade between the interior and the coastal regions, Minsheng is in the process of improving its fleet structure by adding new container and roll-on roll-off vessels.
“IFC is committed to meeting China’s infrastructure investment needs, especially with local companies that strive for high standards,” said Javed Hamid, IFC’s director for East Asia and the Pacific. “IFC’s loan to Minsheng Shipping supports private sector in China’s western and interior regions and improves the shipping infrastructure facilitating trade between the interior and coastal regions”.
“IFC’s is happy to have committed its first investment in Minsheng Shipping, a leading private Chinese transportation company operating in a critical corridor of the Yangtze River. IFC’s financing of Minsheng Shipping’s expansion program will support the company’s continued growth, and will help strengthen the export capacity and economic development of China’s interior provinces in Yangtze region,” said Francisco Tourreilles, director of IFC's Infrastructure Department.
“This investment supports Minsheng’s development through the provision of medium to long term financing and other value added services by IFC”, said Minsheng Shipping Chairman Lu Gou Ji
The investment will be IFC’s first in the China’s critical transport services sector. Since 1985, IFC has providing financing exceeding $2.0 billion in more than 90 projects in China. The investments supported the development of private sector in manufacturing, infrastructure, banking, chemical and mining, agribusiness, health and education in China.
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 FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
