Beijing, China, March 2, 2010
—IFC, a member of the World Bank Group, is providing a $20 million loan to Xiwang Sugar Holdings Company Ltd. to enable the Chinese agro-processor to upgrade its operations, while promoting rural employment and food safety standards.
Xiwang Sugar, based in Shandong Province, has the capacity to process 1.5 million tons of corn per year sourced from Shandong Province and Northeast China. The company focuses on developing functional starch sugars. IFC’s long-term loan will allow the company to upgrade its processing capacity and strengthen its financial structure.
“I am very happy that Xiwang Sugar is entering into agreements with IFC today. Since our establishment in 2001, we always have received strong support from the Shandong Provincial government in achieving and maintaining our leadership position in the country’s starch sugars industry,” said Wang Yong, Chairman of Xiwang Sugar. “With IFC’s strong financial and advisory support, I am confident that we will play a greater role in promoting efficient use of resources and environmental protection in line with the Chinese government’s ’Yellow River Delta Efficient Eco-Economic Zone Development Plan,’” the chairman added. ”Xiwang Sugar will contribute to the national strategy of building sustainable economic prosperity and improving the lives of residents in Shandong.”
Karin Finkelston, IFC’s Director for East Asia and the Pacific, said, “IFC’s support to Xiwang Sugar will help to promote rural employment, reaching almost 400,000 farmers, as well as to develop the company’s supply chain and enhance food safety standards in China.”
Oscar Chemerinski, IFC’s Director for Agribusiness, said, “Xiwang Sugar has demonstrated its commitment to high environmental and social standards. IFC is pleased to support the company’s sustainable development.”
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by making long-term loans to businesses to support employment and sustainable development.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Xiwang Sugar
Xiwang Sugar, a member of the Xiwang Group, is listed on the Hong Kong Stock Exchange (stock code 2088). The company’s mission is to provide global customers with healthy starch sugars and ingredients. Xiwang Sugar operates a fully-integrated production plant in Zouping County, Shandong Province, and currently is the largest producer of crystalline glucose in China with an annual designed production capacity of 800,000 tons. Xiwang Sugar has its own highly advanced research and development team to develop new products and to enhance operational efficiency. In addition to crystalline glucose, the company produces a range of starch sugars including crystalline fructose and oligosaccharide and many other corn refined products. Xiwang Sugar commits to high environmental safety and social responsibility and is accredited by the Ministry of Environmental Protection of the PRC as the National Environmental Friendly Corporation since 2005.
