I . l._,. .In w~~~~~~~~~~~~~~~~~~~~~~~~ - \~~~ 0 u~~~ 2 - 4 F~~~~~. -. - .-- - z s ~~~~~~~~~~~~~~~~~~~ 7~~~~~~~~~~ ... - - _ _~E t , ' - - - l l _ I S lS= - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - le of Contents *er to the Board of Governors I ssage from the Executive Vice President 3 Contributing to Development 5 > oort on Operations 7 -!e Climate for Private Investment 17 Regional Reports Stlb-Saharan Africa 23 IAsia 35 ('enitral Asia, the Middle East and North Africa 47 F L,-ope 57 Latin America and the Caribbean 71 IFC and the Environment 83 Financial Review 89 The Portfolio 93 Management and Organization 97 Financial Statements 101 The Investment Portfolio 123 Statement of Cumulative Commitments 159 Appendixes Governors and Alternates 161 Directors and Alternates and Their Voting Power 164 Banking Advisory Panel 166 Businiess Advisory Council 167 Management 169 Addresses 172 Glossary and Credits 174 Letter to the Board of Governors FM~~~~~~~~~~~~~~~~~~~~~ __ D r . ^ t R .i w July 26, 1995 The Boord of Directors of the Internotionol Finance Corporation in Woshington, To the Board of Governors: D.C., in January of 1995. The Board of Directors of the International Finance Corporation has had this Annual Report for the fiscal year ending June 30, 1995, prepared in accordance with the by-laws of IFC. MIr. James D. \Volfensohn, President of IFC and Chairman of the Board of Directors, who assumed his duties on June 1, has submitted this report with the accompanying audited financial statements to the Board of Governors. We would like to take this opportunity to pay tribute to Mr. Lewis T. Preston and express appreciation for his outstanding service to IFC and the World Bank Group from September 1, 1991, until his unexpected death on May 4, 1995. We particularly would like to acknowledge Mr. Preston's role in developing partnerships with the public and private sectors, and in making the World Bank Group a more flexible institution, better equipped to respond to the vast challenges its diverse mem- bership will face in the years ahead. The Directors are pleased to report that in 1995 IFC continued to expand its project financing and advisory activities in developing member countries, while maintaining its strong financial position. Directors Alternates Ibrahim A. Al-Assaf Ruth Jacoby Ibrahim M. Al-Nlofleh Helga Jonsdottir Faisal A. Al-Khaled Bimal Jalan Mohamed WN. Hosny Mushfiqur Rahman Marc-Antoine Autheman Abdul Karim Lodhi Arnaud Chneiweiss Kacim Brachemi Ali Bourhane Leonard Mlseka Luc-Abdi Aden Joaquim R. Carvalho Andrei Bugrov Peter W.E. Nicholl Eugene Miagkov Christopher Y. Legg Marcos Caramuru de Paiva Atsuo Nishihara Armando Montenegro Rintaro Tamaki Huw Evans Julio Nogues David Stanton Carlos Steneri Fritz Fischer Jan Piercy Erika Wagenhbfer Michael Marek Jeani-Daniel Gerber Walter Rill Jan Sulmicki Philippe Peeters Leonard Good Suwan Pasugswad Winston Cox Khin Ohn Thant Enzo Grilli lorge Terrazas Helena Cordeiro Roberto Jimenez-Ortiz Eveline Herfkens Zhang Shengman Sergiv Kulyk Zhu Guangyao LETTER TO THE BOARD OF GOVERNORS - | n l | l - Message from the Executive Vice President Fiscal 1995 was a good year for the International Finiance Corporation, one in which we main- tained the pattern of expansion established over the past decade. The Board of Directors .| approved $2.9 billion in loans and equity invest- niients for 213 projects in 67 countries. The incr-ease in scope and breadth of IFC operations -. c(lotinued to be fueled by the momentum of econiomic growth led by the private sector in iiiost of our client countries. IFC invested in an A eve.r wider range of sectors, placing priority on capital market development and infrastructure, especially power, telecommunications and tranisport, as well as on privatization activities. For the first time, IFC's Board of Directors approved investments in the Kyrgyz Republic, Latvia, Lithuania and South Africa. sound ones, were forced to contend with Jannik Lindbaek, Executive Vice Ar-mnenia, Georgia, Moldova and Tajikistani were reduced access to the international capital mar- President of IFC (standing), and James D. Wolfensohn, President welcomed as new members. kets. At the same time, they needed long-term of the World ank Group (seated). IFC was honored to welcome James D. financing to restructure and modernize in the \Volfensohn as president of the Wo'orld Bank face of increased competition brought on by Group on June 1. He succeeds Lewis T. Preston, regional integration. IFC responded by helping wvho served with great distinction for nearly to finance their capital expenditure programs, foulb years, and whose untimely death we deeply successfully syndicating loans for various com- mlourn. It was a privilege to have worked closely panies, thus maintaining their access to the with Lew Preston, one of the great statesmen of international markets. initernationial finance. His interest in IFC's IFC developed a new instrument for progress and his unflagging support were sources Apasco, S.A. de C.V., a cement producer in of inspiration. Mexico, through which U.S. institutional A decline in the value of many emerging investors can participate in its syndication pro- equity markets wvas the main reason for the gram by purchasing tradable bonds. This inno- decr-ease in IFC's net income from 1994's record vation, which enabled IFC to expand the pool of level. Net income was $188 million, a return of institutions able to participate in its resource 5.3 percent on IFC's net worth, which reached mobilization activities, is likely to serve as a $3.6 billion on June 30. I'he Mexican peso crisis model for other projects. was the single most significant disruption in the For several years IFC has been at the international financial markets durinig the year. forefront in identifying and financing environ- The crisis clearly had a negative, if temporary, mental projects. In 1995 IFC invested again in ilpact on private portfolio flows-an impact Aguas Argentinas, a private sector consortium wdhich was felt beyond Mexico's border. How- that is operating, improving and expanding ever, there is a reasonable basis for optimism, water and wastewater services in metropolitan because despite the crisis, foreign direct invest- Buenos Aires. The result has been the city's first ment flows have remained strong and the inter- summer in 15 years without a water shortage. In national financial system has proven to be quite all of its activities, IFC ensures that environ- resilient. mental issues and opportunities are fully The Mexican peso crisis posed a special addressed. clhallenge in Latin America. Many firms in the IFC is also pioneering the use of securiti- megioni, including well-known, fundamentally zation as an alternative vehicle for leveraging MESSAGE FROM THE EXECUTIVE VICE PRESIDENT 3 resources, thereby strengthening its develop- issue and are drawing on IFC's experience to mental role by attracting new institutions to identify ways of enhancinig our developmental invest in developing countries. To this end, IFC impact. launched a securitization of $400 million of its To ensure the transparency and account- own loan portfolio to privately owned coinpa- ability of its activities, IFC instituted a new policy nies in eleven emerging markets. This was the on disclosure of information. Before the Board first time that a pool of loans for companies in reviews a project, specific documents are now developing countries was securitized and sold released to the public, as are policy papers that through a public offering in the global financial review IFC activities. markets. IFC is also working in other emerging In sum, my first full year as IFC's markets to establish similar specialized instru- Executive Vice President was challenging and ments and will continue to provide advisory rewarding. WVe are meeting increased demand services to its clients in structuring securitiza- for our services and are responding over the full tion transactions. range of our activities. IFC's progress and In sub-Saharan Africa, IFC established expansion over the last year has coincided with the Enterprise Support Service for Africa to pro- the implementationi of measures to improve our vide technical assistance to businesses after efficiency, enhance productivity and restrain the financing has been secured. The facility will growth of administrative costs. None of this open in early 1996 as a pilot operation in Ghana. would have been possible without the dedica- It will complement the Africa Project Develop- tion anid hard work of IFC staff, and I am very ment Facility, which addresses pre-investment, grateful for their contribution. and the Africa Enterprise Fund, which provides financing, in meeting the needs of small and medium-sized enterprises through all stages of their development. Other innovative projects included the world's first franchise fund, which IFC estab- Jannik Lindbaek lished in South Africa to finance small and Executive Vice Presidlenit medium-sized operations. Narrowing economic and structural inequalities, the fund will make capital available to menmbers of formerly disad- vantaged groups to acquire franchises. In Asia, IFC provided funids for Viet Nam's first private sector port, which will contribute significantly to expanding economic activity in a new indus- trial area and boost efficient distribution of crit- ical goods such as fertilizers and agricultural products in the region. To accelerate econonmic growth in the Middle East, North Africa and Central Asia region, IFC focused on developing capital markets by creating model financial institutions, diversifying financial services and introducing modern banking and management practices. Continuing to assist in Central and Eastern Europe's transition to market-based economies through a variety of manufacturing investments and privatization work, IFC made its single largest investment in Russia to restructure a privatized pulp and paper companiy, AO Volga. IFC also put more emphasis on assessing and improving its development effectiveness. Studies carried out by its Operations Evaluation Unit are devoting increasinig attention to this 4 INTERNAT ONAL FINANCE CCRPORATION Contributing to Development v r 'Thei International Finance Corporation (IFC), a itable enterprises. In so doing, IFG makes a sus- /FC investments in Aguas memiiber of the World Bank Group, shares the tamnable contribution to national income and Argentinas have helped prevent primiiary objective of all Bank Group institu- employment generation. water shortages in Buenos Aires. tiouis: to improve the quality of the lives of Third, IFC participates in an investment people in the developing world by strengthening only when it can make a special contribution econiomies and expanding markets. IFC's partic- that complements the role of market operators. Lolar focus is to promote economnic development This special contribution can take a wide variety by encouraging the growth of productive private of forms, including attracting investment to eniterprise and efficient capital markets in mem- countries that private investors consider exces- her- countries. IFC finances private sector yen- sively risky or creating model transactions that tores and projects in developing countries in are replicated by other market players-for par-tnership with private investors and, through example, financing a country's first private infra- its advisory work, helps governments create structure project or its first leasing company, or cooiditions that stimulate the flow of both domes- advising on a privatization. tic aind foreign private savings and investment. IFC's development mandate is what IFC achieves its development missioni differentiates it from commercial financiers. In tthrough three guiding principles: executing this mandate IFC adds value to pro- the catalytic principle, ject proposals by: the business principle, and * Subjecting them to tests of financial viability, the principle of special contribution, since businesses that are not financially sound First, it seeks to act as a catalyst to bring are not sustainable and cannot contribute to pr-ivate investors together in proj'ects, using a development; miniiority investment role to mobilize additional * Adding or enhancing technical, financial and funiding through local and foreigni direct invest- environmental features; nment, bank syndications, sales of participations, * Applying rigorous World Bank environmental uniderwriting securities and private placements. guidelines to ensure that firms financed by Second, lFC functions as a business in IFC contribute to sustainable development; partnership with the private sector, takinig the * Testing for economic viability, which same commercial risks in order to create prof- requires the ability to comipete in global IFC CONTR BUT NG- TO DEVELOMENT 5 markets without subsidies or tariff protection; numerous developing country investment funds and established by private entities-a vehicle that * Providing advice in areas such as capital IFC pioneered. IFC's capital market activities- markets and privatization, special initiatives building new financial institutions and funds; such as the Africa Project Development advising governments on the framework for Facility, technical assistance through vehicles stock markets, private pension funds, and banks such as the Foreign Investment Advisory and other institutions; and introducing new Service, and private sector assessments to financial products-have had a far-reaching review business conditions in particular impact on the ability of many countries to countries. mobilize foreign capital and domestic savings To ensure that its work conforms to its for investment. These operations are tailored to development mandate, IFC undertakes self-eval- a given country's stage of development and help uations conducted by its operational staff and develop its financial sector by building new independent evaluations conducted by its institutions or introducing innovative financial Operations Evaluation Unit (OEU). OEU stud- products. ies assess the financial and developmental IFC has also played a leadership role in results of IFC operations and help managemenit many countries in transition to market-based and staff in decision-making. Recently, follow- economies through the design and implementa- ing an external consultant's review of IFC's eval- tion of privatization programs. As an advisor, uations, the management and the Board decided IFC has assisted in the implementation of priva- to increase OEU's attentioni to IFC's develop- tizations of individual companies and has also nmental effectiveness. The Board also created the developed models for direct auctions of small- Committee on Development Effectiveness, scale businesses, voucher-based auctions of large whose mandate includes the oversight of this enterprises, and privatizations of state-run farms. important dimension of operations. One of IFC's objectives is to support Today, IFC is the largest multilateral businesses that can survive amid increasing source of loan and equity financing for private international competition. To achieve this goal, sector projects in the developing world. Consis- IFC requires that its initial investments enhance tent with its focus on private enterprise, IFC does each firm's productivity, because increased pro- not accept government guarantees; IFC prices ductivity can cumulatively prompt transforma- its financing and services in line with the market. tion of a sector, a region and sometimes an IFC coordinates its activities with the entire economy. Such transformation may other institutions of the WVorld Bank Group- include development of downstream industries, the International Bank for Reconstruction and technology transfers, innovations that are imni- Development, the International Development tated by competitors and employee training. All Association and the Multilateral Investment these benefits translate into sustainable increases Guarantee Agency-yet is legally and financially in employment and gains in standards of living. independent. It has its own articles of agree- ment, shareholders, financial structure, manage- ment and staff. Its share capital comes from its 165 member countries, which collectively deter- mine IFC policies and activities. Strong share- holder support and a substantial paid-in capital base have enabled IFC to raise most of its lend- ing capital through triple-A-rated bond issues in the international financial markets. Sinice its founding, in 1956, IFC has pro- vided more than $16 billion in financing for 1,595 companies in 114 developing countries. It has also played an important catalynic role, stimulating private investment in the developing world by demonstrating that investments there can be profitable. Today, for example, there are 6 INTERNATIONAL FINANCE CORPORATION U Report on Operations In fiscal 19951 IFC's Board of Directors Project Approvals approved total investments of $2.9 billion in by Sector financing for 213 projects, compared with $2.5 (millions of U.S. dollars) billion in financing for 231 projects in 1994. $33 $171 Timber, pulp ond paper The total cost of the projects approved was $19.5 Hotels and tourism billion. IFC mobilized funds for 65 investments $25 d$206 Chemicol, petrochemicals through loan syndications. For every dollar Oil refining _ _ $285 General manufacturing, invested bv IFC, other investors and lenders pro- automoaive industry and industrial equipment vided 5 dollars and 73 cents. IFC also increased $1,783-- its advisory services, undertaking assignments in Infrastructure - $302 Textiles over 100 countries. In addition, trust fund com- $335 Cement and construction mitments of $5.7 million allowed IFC to initiate materials 65 technical assistance assignments. $1038 L $597 Food and agribusiness Capital morkets, development finance Project Financing and financial services -1 $692 Mining of metals, other Project Financing ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ores and fuel minerals Financing approved for IFC's own account in FY95 Total $5,467 1995 included loans totaling $2 billion; equity and quasi-equity ilvestments of $821.6 million; companies, discount houses, insurance compa- and guarantees, swaps and standby arrange- nies and venture capital funds. In Russia, for menits of $82.2 million. The average net invest- example, IFC helped to develop and invested in mient was $13.7 million. a share registry company which should ease a key constraint on further development of stock Regional Distribution. IFC approved invest- markets there (see page 58). ments in 67 countries in 1995, up from 65 in IFC's role as a shareholder in new finan- 1994. Transition to market-based economies cial institutions and an investor in various kinds accelerated, advancing one of IFC's long-term of funds is an important element in its invest- objectives of achieving a regionally balanced ment program: about 51 percent of the financ- and diversified portfolio. ing approved by IFC for capital markets projects Of the total number of projects in 1995 was in the form of equity and quasi- approved, 57-representing $688.7 million in equity investments. Support for various types of financing-were located in countries with annual financial intermediaries was also a key compo- per capita incomes of $695 or less. These pro- nent of IFC's strategy for reaching small and jects accounted for 27 percent of the total num- medium-sized businesses. ber of projects approved and 24 percent of the Demand increased for IFC financing of financing approved for IFC's own account. infi-astructure projects as developing country governments, particularly in Latin America and Sectoral Distribution. As in previous years, IFC Asia, continued to liberalize sectors such as approved financing for projects in a broad range telecommunications, transportation and power. of sectors, with priority on capital markets and This growth in demand was the result of deci- infrastructure, but also with emphasis on sions by many governments to broaden oppor- extractive induLstries, agribusiness, chemicals tunities for private investors, and the difficulties and general manufacturing. of mobilizing funds and structuring transac- IFC investments in financial sector pro- tions for large infrastructure projects. IFC jects accounted for 23 percent of total project worked both in countries seeking to uLndertake financing approved for IFC's own account. their first private infrastructure projects, as well Building domestic financial institutions remained as in countries that have some experience with a priority through loans and equity investments I. All references to 1995 are for the fiscal year ending in commercial and investment banks, leasing June 30, unless otherwise noted REPORT ON OPERATIONS 7 The Past Ten Years (millions of U.S. dollars) Fiscal year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Operations Investment Approvals Number of projects 85 92 95 92 122 152 167 185 231 213 Total financing 1,164 914 1,270 1,710 2,201 2,846 3,226 3,936 4,287 5,467 Financing for IFC's own account 710 790 1,039 1,292 1,505 1,540 1,773 2,133 2,463 2,7 Underwriting and syndications 454 124 231 418 695 1,306 1,452 1,803 1,824 2,590 Total project costs 3,588 4,343 5,010 9,698 9,490 10,683 12,000 17,422 15,839 19,352 Committed Portfolio Number offirms 377 409 454 468 495 618 703 798 868 93i8 Total committed portfolio 3,441 3,795 4,270 4,968 5,884 7,008 8,718 10,026 11,512 13,159 For IFC's own account 2,387 2,756 3,374 4,045 4,752 5,494 6,423 7,132 7,893 9,461 Held for others 1,054 1,039 896 923 1,132 1,514 2,295 2,894 3,619 3,698 Resources and Income Capitalization Borrowings 1,223 1,581 2,047 2,255 3,580 4,130 5,114 5,565 6,531 7,993 Paid-in capital 602 722 850 948 1,072 1,145 1,251 1,423 1,658 1,8I75 Retained earnings 284 338 438 635 792 957 1,138 1,280 1,538 1,726 Earnings Net income 25.4 53.8 100.6 196.5 157.0 165.9 180.2 141.7 258.2 188.( private investors but still have difficulty in IFC's support of infrastructure has varied mobilizing funds. IFC complemented its direct across countries and across industries. Oppor- project support with technical assistance to gov- tunities are greatest in power and telecommuni- ernments and project sponsors. Through this cations, although IFC projects in transportation dual strategy, IFC leverages its limited resource and other utilities, including roads, ports and base, with particular emphasis on achieving water, are increasing. high funds mobilization ratios, demonstrating The investment portfolio and new busi- successful project implementation and sharing ness approvals continue to cover a broad range lessons gathered from its experience. of industries. In 1995 many of the traditional IFC approved financing of $733.9 million industries in which IFC invests-mining, for its own account for infrastructure projects in agribusiness, petrochemicals, pulp and paper, 1995, in addition to $1,049 million in loans to and steel-had substantial rebounds in market be syndicated with international commercial demand, prices and capacity utilization. A rela- banks. This accounted for 25.5 percent of IFC's tively new area of business for IFC is the service 1995 approvals. IFC is gradually extending the sector in developing countries, which has begun geographic coverage of its investments in this to seek increased financing as the large-scale sector to the regions of Central Asia, the Middle formats of retail and wholesale distribution used East and North Africa, as well as Europe and by the developed world multiply (see page 18). sub-Saharan Africa. 8 NTERNATIONAL FINANCE CORPORAT ON Resource Mobilization taking part in IFC syndicationis rose to 29 per- IFC continued its success in mobilizing capital cent and the share of U.S. banks rose to 12 per- for private sector projects in developing coun- cent, while European banks retained a substan- tries-for every $1 in financing approved by tial share at 51 percent. IFC is also increasingly IFC for its owIn account in fiscal 1995, other working with nonbank finanicial institutions- investors and lenders will provide $5.73. Some such as major insurance companies, leasing of this financing will be in the form of cofinanc- companies and specialized financing compa- ing through loan syndications. In addition, IFC nies-in its loan syndicationis program, particu- was involved in structuring and arranging the larly for infrastructure projects requiring large mobilization of funds in the aggregate of $306 amounts of long-term finanicing. million through the launching of pooled invest- Of the $2.6 billion total volume of syndi- ment vehicles for emerging markets. The total Financing Approved value of securities issued by IFC client compa- FY91-95 nies on a private placement basis during the past (millions of U S. dollars) year came to $389.2 million. 6000 _ Syndications. The primary means by which IFC 5000 _ Financing for IFC's own account mobilizes third-partv funids for projects in a developing countries is syndicated loans, in 4000 _ Syndicatons which IFC shares the commercial risks of pro- 3000 jects with cofinancing partners and provides its lender-of-record umbrella. As a result, IFC has 2000 __ _ _ _ successfully secured financing for many borrow- 1000 ers that would not otherwise have had access to long-term project funds on reasonable terms 0 * _ * * from the international financial markets. The total volume of IFC loan syndica- 1991 1992 1993 1994 1995 tions approved in 1995 increased to a record $2.6 billion, exceeding the previous level of $1.8 billion. For the fifth successive year, IFC cated loans approved during 1995, borrowers in syndications exceeded loan investmenits for its Latin America represented 49 percent, followed own account, due in part to success in raising by Asia with 29 percent; Europe, 9 percent; financing for large, capital-intensive infrastruc- Central Asia, the Middle East and North Africa, ture projects in Asia and Latin America. 9 percent; and sub-Saharan Africa, 4 percent. Private companies in emerging markets In 30 years of loan syndications, IFC has found it more difficult to raise finanicing from placed participations of more than $8.5 billion the international markets after the Mexican with some 324 financial institutions ( includinig peso devaluation in December 1994. Nevertlhe- their subsidiaries) supportinig over 433 business less, comnmercial banks continued to support ventures in more thani 71 developing couL1tries. well-structured emerging market financings by IFC currently administers a loan portfolio of more participating in lEG's syndicated loans. To facili- than $4.9 billion for its participants' account. tate these financings, the central banks of maniy capital-exporting countries have exempted IFC New Capital Market Products. IFC continued loan participations from country-risk provi- its pioneerinig role in developing capital market sioning. products to raise financing for its clients in IFC's principal financing partners for response to recent market trends. During 1995 more than a decade have been leading European IFC signed its first syndication of a structured banks-particularly in France, Germaniy, the commer-cial paper program facility, a $150 mil- Netherlands and Switzerland. Although these lion issue for a Thai finance company, Finance banks are valued partners, IFC broadened its One. The facility will provide funds for Finanice participant base to 189 banks and finanicial One for on-lending to medium-sized Thai com- institutions by the end of the year in response to panies. This commnitmiient is part of a larger IFC increasing demand. The share of Asian banks program to develop structuLed commercial REPORT ON OPERATIONS 9 IFC Loan Syndications Signed in Fiscal Year 1995 Participants included the following: ABN AMRO Bank N. V. Fuji Bank, Limited, The Abu Dhabi International Bank Inc. General Electric Capital Corporation American Express Bank Ltd. Generale Bank Arab American Bank Gulf International Bank B.S.C. Arab Bank Plc Hongkong & Shanghai Banking Corporation Asian Finance and Investment Corporation (AFIC) Limited, The Banca Nazionale dell'Agricoltura SpA Internationale Nederlanden Bank N.V. Banco Central Hispano Kansallis-Osake-Pankki Banco Exterior de Espana SA Kredietbank N.V. Bank Austria AG Lloyds Bank Plc Bank of Nova Scotia, The Long-Term Credit Bank of Japan, Ltd., The Bank of Tokyo, Ltd., The Mediocredito Centrale SpA Banque Bruxelles Lambert SA MeesPierson N.V. Banque et Caisse d'Epargne de l'Etat Luxembourg MHB Mitteleurop6ische Handelsbank AG Banque Francaise du Commerce Exterieur Deutsche Polnische Bank Banque Indosuez Mitsubishi Bank, Ltd., The Banque Nationale de Paris S.A. Mitsubishi Trust & Banking Corporation, The Banque Paribas Morgan Guaranty Trust Company of New York Banque Sudameris National Bank of Bahrain B.S.C. Banque Worms S.A. Nederlandse Financierings-Maatschappij voor Bayerische Vereinsbank AG Ontwikkelingslanden N.V. (FMO) Berliner Bank AG Oversea-Chinese Banking Corporation Limited Caixa d'Estalvis i Pensions de Barcelona Rabobank Nederland "La Caixa" Raiffeissen Zentralbank Osterreich AG Chase Manhattan Bank N.A., The Royal Bank of Scotland Plc, The Citibank, N.A. Sakura Merchant Bank Limited, The Comerica Bank Sanwa Bank, Limited, The Credit Lyonnais Soci6te de Promotion et de Participation pour Credit National la Coop6ration Economique Credit Suisse Societ6 Gn6rale Creditanstalt-Bankverein Sumitomo Bank, Limited, The Dai-lchi Kangyo Bank, Limited, The Swiss Bank Corporation De Nationale Investeringsbank N.V. Tokai Bank, Ltd., The Deutsch-Sudamerikanische Bank AG Transamerica Leasing Inc. Deutsche Bank Luxembourg UBAF Bank Ltd. London Development Bank of Singapore Limited Union Bank of Switzerland Dresdner Bank AG Westdeutsche Landesbank Girozentrale AG 10 IN I ERNAIIONAL FINANCE CORPORA-10t . paper programs that will enable companies in source of reliable and comprehensive intformiia- developing countries to access the U.S. commller- tion and statistics on stock markets in develop- cial paper market. ing countries. IFC also continued innovative work in Using a sample of stocks in each market, promoting index funds as an alternate method EMDB calculates indexes of stock market per- for investors to access emerging markets. The formance. These indexes serve as benchmarks first emerging market index fund for Latin that are consistenit across national bounldaries, America, the Natwest/lFC Latin American Index eliminating variations that make it difficult to FuLnd, was developed in 1995 with an initial size compare locally produced indexes. The IFC of $60 million. The fund succeeds a global index Investable (IFCI) indexes are rapidly becoming fund IFC launched in 1994 with State Street the premier emerging market benchmark for Global Advisors, which has grown from $50 institutional investors, and comprise the preferred million to more than $1 billion. IFC expects to underlying set of indexes for a variety of passive continue to develop emerging market index investment funds. IFCI indexes are being tracked funds in order to meet increasing demanid. for an estimated $1 billion in assets. IFC is using securitization as a new By Junle 1995 more thani 1,450 companies means of raising funds and strengthenlilng its were listed for the first time on the 26 markets developmental role. Securitization will be a key tracked by EMDB, 10 percent more than in 1994. in developing domestic medium- to long-term However, total market capitalization in these debt markets by offering credit-enhanced secu- markets fell 2.9 percent in U.S. dollars, as Imnanly rities to domestic investors. In 1995 IFC also stock indexes showed losses for the year. Overall, helped establish P.T. Citimas Capital, the first EMDB's stock coverage increased about 14 per- specialized securitizationi and credit enhance- cenit, from 1.227 to 1,447 stocks. ment institutioni in Indonesia. IFC worked in In addition, EMDB expanded its product other emerginig markets to establish similar line and improved customer service. South specialized institutions and is providing advisory Africa-the world's largest emerging stock services to its emerging market clients in struc- market, with a total capitalization of about turing securitization transactions. $227.5 billion at the end of 1995-was added to IFC index coverage in April. The EMDB also Emerging Markets Data Base. IFC's Emerging intr-oduced the IFC Tradable Indexes (1FC100, Markets Data Base (EMDB) is a vital statistical Asia5O and LatinSO). which are calculated daily, resource for the international financial com11mu- and added an advanced data managemenit sys- nitv and for IFC in its investment and advisory tem to meet the rapidly expanding demands of work. In its second decade, EMDB has gained emerginig market investors. All of EMDB's prod- internationial recognitioni as the world's premier ucts are commercially available in computerized Project Approvals by Region FY95 _ FY94 FY95 and FY94 Flinancing Fi lancinig tIotal for IF(: s Total for tFCs Nin111her fillallcillg' t)owI acconU t Nuoitber Iinancing3 Own accoCOlnt (ili iiHiliiois of [iUS. dlollirs) (In f,nilliolis of U.S. dollars) Sub-Saharan Africa S1 431 318 57 226 157 Asia 4I 1,443 691 44 1,229 605 Central Asia, the Middle East and North Africa 34 (614 387 30 599 383 Europe 2I8 6136 403 46 596 443 Lati AnAerica aid the Caribbeani 53 2,313 1,0)48 52 1,577 815 Worldwide 2 30) 3(1 2 61 61 Total 213 5,467 2,877 231 4,287 2,463 a. Dollar amount refers to total financing approved for IFC's account, loan syndications and underwriting. REPORT ON OPERATIONS 1 1 form and as publications. The database provides risk management projects representing an expo- three levels of computerized data: comprehen- sure of approximately $300 million for clients in sive data on individual stocks covered in all mar- 16 countries. Transactions have been completed kets, data series for each index computed and to hedge a notional amount of up to $1.1 billion. data series for each market covered. In 1995 IFC approved seven risk man- agement projects for companies and banks Securities Underwriting. IFC also helps private located primarily in Central Asia and Latin sector companiies in developing countries to America. IFC's first risk maniagemenit facility in access the international capital markets through Pakistan was designed to enable D.G. Khan securities issues. It advises, structures, under- Cement Company Limited to hedge its currency writes and places international corporate issues and interest rate mismatches. Another IFC risk of equity, quasi-equity and debt securities, as management project was an interest rate swap well as pooled investment vehicles. IFC manages for Grupo Posadas S.A. de C.V, a Mexican hotel these offerings in partnership with international company, to fix its U.S. dollar liabilities and investment banks. Many of the investment vehi- thereby to achieve better control of future inter- cles it underwrites are the first of their kind in est expenses and improved financial planning. the host countries. During the year IFC securities tinder- Technical Assistance and Advisory Services writing and placement activities were hampered Strong demanid for IFC technical assistance and by volatile conditions in the international capi- advisory services continued in 1995, resulting in tal markets. In spite of these difficult conditions, a diversity of projects in over 100 countries or IFC helped place three emerginig market funds regions. Projects in member countries included with an aggregate value of $306 millioni. The assistance to: First NIS Regional Fund, a $180 million closed- * develop capital markets, end equity fund, invests in companies in Russia * draft securities markets laws and regulations, and other former Soviet republics and the E3altic * shape the regulatory environlment for new states. The Natwest/IFC Latin American Indlex types of financial institutions, Fund, an equity fund with an initial size of $60 * establish supervisory and enforcement entities million, tracks mar-kets listed in the Latin and mechanisms for securities markets, and America Investable Index in EMDB. The Tower * create or develop stock exchanges. Fund L.P., valued at $66 million, focuses on pri- In addition, IFC advised governments on vate equity investments in Argentina. the development of collective investment vehi- cles; entry and exit requirements for foreign Risk Management Services porttfolio investment; practices related to non- IFC has offered risk management services for voting shares; and clearing, settlement and the past five years. These products provide depository systems. Specific services included clients with valuable hedging tools to reduce identifying the steps required to establish registry, balance sheet mismatches and decrease vulnera- clearing and settlement capabilities in Russia; bility to unfavorable movements in interest reforming Slovenia's pension fund system; and rates, currency values and commodity prices. establishing a regional share-trading mechanism With the ability to hedge these risks, clients ben- and legal framework for a regional securities efit from better creditworthiniess and profitabil- market throughout the West African Monetary ity. Although such products are widely used Union. throughout the developed world, maniy compa- IFC also helped the governments of nies lack direct access to them because market Russia, Ukraine and Belarus to find practical players are reluctanit to accept the inherenit solutions to the challenge of rapidly transferring counltry risk for large amounts or long matiiri- assets to private hands in a transparent and ties. These products are offered to IFC custo- equitable way. It expanded the use of model mers solely for hedging purposes. IFC accepts programs, particularly in Ukraine and Belarus, no market risk on these transactions; it either for the direct auction of small-scale businesses, executes an offsetting hedge or works with mar- the voucher-based auction of large enterprises, ket counterpar-ts on a risk-sharing basis. and the privatization of state-run farms. Since 1990 IFC's Board has approved 34 In Haiti, IFC has been appointed as special 1 2 IN ERNATIONAL FINANCE CORPORAT ON adviser to the government on the democratiza- tion of seven public enterprises encompassing key economic sectors. In Uganda, IFC agreed to advise on privatizing the telecommunications sector. IFC also received a mandate from the Kazakh government to advise on the privatiza- tion of East Kazakhstani Copper Chemical Kombinat and Irtysh Polymetallic Kombinat. Advisory assignments of this type can serve as models for future privatizations in the countrv. During the year IFC prepared a report entitled "Privatization: Principles and Practice,"which will share the lessons learned through its advisory MV and investment support for privatization. ,- IFC's advisory work in infrastructure involved sharing its experience with govern- 4 . * X . menets oni the conitractual framework for trans- , ferring services to the private sector. IFC pub- lished a report entitled "Financing Private Infrastructure Projects: Emerging Trends from IFC's Experience," which was widely distributed - in English, French and Spanish and was also translated into Chinese and Japanese. The report outlines the basic strategies that govern- ments are using to open infrastructure to pri- r vate investors, and the issues that investors (including lenders) must address when bringi ig projects to completion. IFC also collaborated with the WMorld Bank on a numiiber of financial sector reviews and helped government authorl-ities in several nical assistanlce itl cipitall markets, (levelopment IFC is working to expond Us countries with financial sector development. For of project facilities, and advisorv services in successful land privatization example, IFC is working with the W\orld Bank in infrastructure and foreignl investment. TATF programs throughout Russia. providing advice to the China Securities funided 65 new technical assistance projects in Regulatory Commission on national securities 32 countr-ies. Althouglh the demand for its ser- law and regulations. In Pakistan, IFC is advising vices remainied strong in East Asia and sub- on the development of a private venture capital Saharan Afr-ica, 30 percent of all projects were industry as part of a World Bank Industrial located in Centr al and Eastern Europe and the Technology Project. former Soviet Union, especially in Russia. Since the program's inception, more than Technical Assistance Trust Funds Program. $38 millioni has been received througlh 21 trust IFC's Technical Assistance Trust Funds (TATF) funlds established with 15 donor countries. program is a unique corporate resource for TATF has supported some 250 technical assis- private firms in developing countries. The donor- tance projects involving an aggregate commit- backed TATF provides support for feasibility ment of about $23 million. IFC invested in at studies, operational technical assistance, pilot least one out of every three projects for which it operations and project rehabilitation. The pro- concluded feasibility studies. grain enables IFC to leverage its expertise and experience more effectively by combining them Foreign Investment Advisory Service. The with donor funds. Foreign Investmenit Advisory Service (FIAS), The scope of TATF's activities expanded jointly operated by IFC and the NVorld Bank, in 1995, along with a continued emphasis on advises member governments on policies, privatization and corporate restructuring, tech- programs anid instituLtional arrangemenits to REPORT ON OPERATIONS 1 3 attract foreign direct investment. In 1995 FIAS completed 26 assignments, comprising advisory projects in 25 countries and the implementation of projects in two others. Several projects followed up on earlier advisory work and helped implement invest- ment policies. FIAS conducted a number of seminars on foreign investment policy, includ- ing a conference on new developments in for- eign investment for policymakers and promo- tion agencies in Latin America. It also convened a roundtable on policy aspects of developing linkages between foreign and domestic firms in Asia. A multi-year program of institutional development for the Board of Investment of Bangladesh was brought to a close during the year. FIAS also initiated a new research activity to review methods of privatization and assess their likely impact on the participation of for- eign investors in the process. IFC operations are complemented by several programs that help entrepreneurs in smaller economies develop business proposals and raise financing for projects: the Africa Project Development Facility (see page 27), the South Pacific Project Facility (page 39), and the Polish Business Advisory Service (page 62). FIAS's specific advisory activities, seminars and research projects are described in greater detail in the regional reports and on page 99. 1 4 INTERNATIONAL FINANCE CORPORATION 1995 Worldwide Project Approvals Financing (US$ millIonis) IFC Financing Other Firnancinig ,A f TotalI Total t6> ~~~~~~Project Project Description N\ Finanlcing Cost Global Emerging Invest in long-terimi debt instlrum.lenlts issued by privatte 2(.0 20.0 150.0 Markets Income Fund sectol issuers in dCvelop[inlg couInties Emerging Markets Make eqluity investIm1enIts in outbounld cross-bordeL- I(0.0 10.0 50.0 Leasing Fund leveraged leascs to lessees in selected emerging markets 1995 Worldwide Technical Assistance and Advisory Projects Description Project technical IFC arranged support throughl its Technical Assistance Trust Fulids Programi for a fact-finding study on major assistance trenids in global recreatiollall tOuIrism1, inCluding domIestic recreational travel in developing COUlnties Project technical Throughl its Technical Assistance' bIrust Funds1 Pr0o1ram. II C secuIed funding tor a study of the impact of GATT and assistance NAfTA 0n investment opportunlities in tbe textile industry, including eveloilmg COultl-ies Financial advisory With sUpport provided through1 its Technical Assistance lr-ust Funld's Programi, IFC conduticted a sector review focused on presenit and fultuLe patterns for investmlIenIt OppoIrtullities ii developinig coLimitries in pork production and processing industries, and factors related to export potential. RFP'-)F'T CI] CrERATIQt 15 ,I'IO~~~~~~~~~~~~~~~~ W474 41 e 74 I- Climate for Private Investment I-lc global economiy strengthened in 19941 fol- lowing several years of sluggish growth, sptirred h\ strong performances in the world's develop- imp countries and improved performances in the d,seloped markets. In the developing world, annulal real (P)P growth continiued at about 4.5 percent in ,. 1994, excluding Central and Eastern Europe and - S the former Soviet Union. This rate matclhed that of ilhe past few years and exceeded the average annual growth rate of 3.5 percent of the previ- OLIs tWO decaides. In the world's developed countries, real W , ,l')l increastd 3 percent, compared to I percent growth in 1993 and a 2.5 percent average over I! the last 2(0 years. The United States recorded its - third successive year of expa-nsioni with real (;[)P growth accelerating to more than 4 per- cenlt, while nmost OECD countries experienced ceoniomiiic recoveries after mild recessions in 1993. lapani enidur-ed a year of weak economic pcerformance in 1994 due in large part to the t \ Strengtheninig of the yeni. The world economy was expected to i, reiiiain strong in 1995 largely because of two , \ trends that foster conditions for sustainable, low-inflationi growth. The first is the continutied strotng growth of world trade, which expanded by an estimated 9 percent in 1994, its largest incr-ease since 1976. This growth in trade has - , - been stimulated by the recent passage of the GAIT agreemlent and several regional trade pacts. The second trend is the ongoing integra- tion of capital markets, which imposes more disciplinie on nationial economiiic policymaking. Performance of Industrialized Economies Average real GDP growth in OECD countries recovered to an estinated 2.9 percent rate in 1994 after dropping to 1.3 percent in 1993. Along with the compar-ative strength of the U.S. economy, increased growtlh in the developed capacity. The slowness of businesses in respond- IFC invests again in Bakrie Kasei counitries primarily reflects consuner- and ing to increasing investment demand was due to to integrate Indonesia's polyester export-led retcoveries in Germanv, France and the rise in real long-term interest rates and the and PT resin Industry. Italv, as well as accelerated output growth in the high level of investment in recent years. lInited Kingdom. Output growth in most other OECD countries remained relatively low, with almlost all the modest expansioni met by existing i. Data in this section refer to the calendar year THE CLIMATE FOR PRIVATE INVESTMENT 17 Internatioinal Trade in Services tion from finished goods restricted corporate Tl/it tcOOtit 'rot) of iitertotiallolu/ ti-afl iil sor 'i-cs Ma11 11HIT 1i tCn , It' listillg iti paltI for profit margins. Consumer prices rose at an il'l 'lapim ig .-t I(lt ics tlhai Oil itlini/it)j pricc iti-otiscs. A I111t1o irtk ic/Iiv lo . i't ol ilC- annual i-ate of less than 3 percent. Urtigiwv Rt. tail of/ tl/c GATT ititis ti-c G tcoril A tgccinlcit it, T IL'c ill Sortlics. *l/i nIf Total U.S. imports surged by ani estimated s12 percent in 1994 after a similar rise in 1993, providing U.S. trading partners with significant revenues. As unemploymenit dropped, the U.S. Sitict' 1980 titci t7tiotal trtit IL' itt soricos itspo rtttiti, thccl, titrist ltl itt Federal Reserve sought to dampen demand by ct/go-blascdl rv'itcsL ittch/tlitig ilt/oi-Iaita titi iticltlotgy, iitt/ig atiii( Itotitic it t' r) c ttis tighteninig monetary policy, and long-tern U.S. gtUi lit at: (1 (11i 't'gc tit1i ti it ratc of -los/t to S pct-to-Ii. colti palit r toi it . pt -tIol t i i'go interest rates rose by roughly 2.5 percent during groat/i nitt' ior Iticrc/liittt/ise triticd. 7Iic Sltiati ott sort 'ic's itt totit /nit,/c tso olort tituc l the year. This was similar to increases in other 22 pincott ii" 1993 irnitt 1/. ptrcoit itt 1980). TIn- flstCsi glOntilig ottupotticltt is ira/c ill industrial counltries, due to both a general con- kiitogiv - ct/ sorviccs. Atlttmos itt to/ccoititittthittiltis aitit i/-it -li - -tt iC/itt0/tgl cern with the inflationary consequences of hit o Ititttst' i/Ol g'og'it/t ou bi riitstitii t//tt' ittihigtttt/itgcoonttmtodtitvitpriciest- hghe comodty-priesind trog sivesmen 17(71 C frallst-c 1bfld1 geOgraph/lf 17NCS1111 oit 7Z1 (111011-C (l 1111,1111(fl/ing o/-prOf/11 tioll .111{1 C-O;I hge om oiypiesadsrngivsmn spendiig. Although the rate increases seem to stittip-tti, ' tt- it/i/yitiggoit/tsortcoshave achieved the intended domestic effect, they contributed to a decrease in foreign investment Tlict prtspecti tourgrttc r do Colopittg ci(t tttiri' ttlt it' ill scraimcs wl/lLil/t ill ordo ! to 11111l olk ;5 sKctr cq liisI:.. .'t o investmllenits by attracting capital to countries st -l-ti dc ti / cOlt/iclit irlss. lE( tlceelficre esttclt/is/lctl {I resctiecc t ocissa.)ti 1it Soc ct/c Afrircc ccl tafidtdficltorseom rilfnac. that finid it difficuilt to raise commercial finiance. No6 iviiycr 194 )Thdris pcrl ilblotitllt r jw-el- 11vill Pl1w} II pivotat l ro>lt inl l,,i, wingin IF(- L-I0C l. 'ovecc/er 4. 'is prctctpsne iip'IFC also serves as a neutral third partv in solv- to tln' privteC seCtcOr tv/core it is ttcost i.ctletl icc the ;fi/cl. ing problems, ensuring an equitable sharing of benefits and encouraging conformity with inter- /Ic 1995 IF tpproic'td its fitst tlic-re icivesticceccts itc Socctic Afr-it-i,. (Jce cvcis a, S-3.6 ,nil- nationial environmental standards. itcl ctqcit' itr c'ecstincellt ill t1 frcichc/cise Cetpictl tccc i/o fticclct,ct stccall cIcitct dielticcicc-sized Financing and providing technical assis- opert ctioiis. I cfis tid. possibly tice first icc tin' crcorlrl to ilcest exc/lusie/ly ill (tmtleiscs. tance to small and medium-sized enterprises vill citt/ke ctipitti l avaitilh7bl' to icccilyciccs of rolcl-ice'! dliscOivatltuci getgrouips ill Soltil (SMEs) is central to IFC's strategy because these enterprises accouint for the bu'.k of the region's Afiicic to c1-eil/ fltir hises. Thec icr cla 11ecc SI 1.7 i llioi eil i itl' ilti'S'ICI lct tc /ItlIp ill enterprises accunt for he b heg i on' tilt' etpitc71 restrcctcriicg iit cci rxpaiihsio o/tie Altl Ailc Lift, Assic rtci cc (-ocicpcllc'. ,itil icl prvate sector activty andh growth and emplovnieiit. IFC skills and contacts traltScc i liccg its Coltrol to c cuccsiccess coiSoiti i cc ot'ftlisitlc' it ttgecd grcops. Fictilci IF(- are particularlv valuable where market sources of lielpeti tcrratccge Ott iccw'estincit of° cp to X20 iciilliotc for c privicte e/quit' ctipitcil tic,c,l to fundinig for SNEs are scarce or lacking, as is the c itk/c it7tc- sticgt ee lct r e cll cstticetc ts ill grttcl ,th ccptccic's, ticgetilly u lcsillesses t1cILced case in nmany sub-Saharan countries. il/ ctic ictiaagel 1ic diist(tc'it'gel groicps. IFC takes a two-pronged approach to support SMEs in the region. First, it assists indi- IFC licts tcso 1ct ee celIpic c Sotitli Af/ric-tttc ctncptcc it's ptlrtieipcctc ill tihc cl/e'oelcpcil'>ct rectly through the development of financial institutionis by, for example, providing credit p-tcct'ss ccf oci erl sd/c - Sct/ctcrt cc Afrietc ii ec tIic tries ccc ccst reeecr/otic tic icy/cgi lici''tccceiLlts icy / lines and technical assistance and helping estab- Soit/l Africicl cccotcpilclilt's Ill tuie Ni 'kossic oil fi,l't tl' c'lopccteict ill /ct (tiligcci o ani I/t lish institutions such as leasing companies and Sa licciti gtclcl ccicc projct itc Ma/i. ventuL-e fuLnds. Second, it offers a comprelhenisive package of direct financial and technical assis- tance to fill market gaps. an appropriate regulatory and policy cnvironi- In the financial sector, IFC broke new ment for private sector activities. ground by providing guarantee facilities to Recognizinig the generally sloweLr pace of encourage local investors to provide medium- private sector developmenit, IFC has targeted the term, local currenicy denominated loans. In Cote region for special emphasis. One out of every d'Ivoire, IFC provided such a guarantee facility four investmenits approved by IFC in 1995 were to SAFCA, a hire-purchase company, marking located in sub-Saharan Africa. Because of the IFC's first local currency intermediationi facility small size of the region's economies, IFC has in sub-Saharani Africa. IFC also provided another invested in few large projects outside of the local currency guaranitee to SAFBAIL, a leasing extractive industr-ies, and has instead concein- company. trated on smnall and mediumn-sized projects Improving the use of existinu industrial across a wide spectrumn of sectors. Small projects assets also has high developmenit impact. IFC -which comprised three out of every five IFC thus has focused on helpinig to privatize and approved-cost more to process but are critical restructure a significant number of troubled to meet the needs of Africa's private sector. industrial, agribusiness and tourism projects. For To speed the pace of private sector devel- example, fotir projects to refurbish hotels were opment, IF(-'s priorities are to: approved in 1995, as was an investnment to reha- * help the region revive its extractive industries, bilitate a recently privatized tannery in Tanzania. * develop small and mediumii-sized enterprises, Sub-Saharani Africa's infrastructure needs * deepen finanicial markets, are massive. In most countries, services are * put existing industrial assets to more pro- poor, prices are high and there is significant ductive use, and unlmllet demand. Developing the region's inifra- * improve physical infrastructure. structure is an essential preconidition for an effi- Extractive industries have high develop- cient private sector. IFC's strategy in this sector mental impact because they are critical to boost- is to help develop private sector solutiolns for 24 INTFRNATIONAL FINANCE CORPORATION key infrastructure requirements in telecom11mu- Project Financing 1FY 95 FY94 nications, power and transport. One example in (mill/iotns of U.S. dollars) 1995 was an investmenit of $17.8 million to help construct a gas-fired power plant in Cote Financing approved for IFC's account 318 157 d'lvoire, in which fuel oil will be replaced with Loans, guaranitees and swaps 201 142 cleaner, more efficient gas. Equity and quasi-equity 1 l7 15 Direct mobilization 113 69 Project Financing and Resource Mobilization Loan syndications 113 69 In fiscal 1995 IFC's Board approved 51 projects Underwritinig - - in 21 couLntries in sub-Saharani Africa, compared Total financing approved 431 226 with 57 projects in 22 countries last year. As of June 30, IFC's committed portfolio included Committed portfolio for IFC's account 899 813 loans and investments for 212 companies in 35 Loans 75i6 727 counitries, compared with 191 companlies in 31 Equity 143 86 countries a year earlier. The number of projects Committed portfolio held for others (loan participations) 310 341 approved continues to reflect IFC's commitment Total committed portfolio 1,209 1,154 to the region: of the 213 projects approved world- wide in 1995, 24 percent are in sub-Saharani Afi-ica. Moreover, financing approved for IFC's impact. AEF has helped maniy companiies pio- owin account more than doubled from $157 neer the export of fish, shrimp, flowers, fruits million in 1994 to $318 million this year. and vegetables. For example, Nile Roses in In the oil and gas sector, IFC approved Uganda started the successful export of roses to two investmenits totaling $141.4 millioni to assist Europe in 1993, which led to the establishlmlent the $1.7 billion development of the Congolese of maniy other such operations in the couLntry N'kossa offshore oil field. IFC also approved an and to the employment of over 1,000 people. equity investmenit in Cdte d'lvoire to develop an Supportinig ecologically souLid invest- offshore oil and gas tield, durinig which exten- menits in the tourism sector was another AEF sive discussiolns took place with local village priority. In 1995 following a detailed envir-oni- elders to plan the onshore pipeline route. In menltal assessmenit, an investmiienit for a diving mininig, IFC approved financinlg to help develop lodge on Plemba Island in Tanzania was the Sadiola gold mine in Mali. approved (see page 85). The project is expected Priority on the development of SMEs in to attract ecologically minded tourists and to sub-Saharani Africa was highlighted by the fact curb ecologically destructive practices suclh as that 60 percent of IFC's 1995 regionial projects dynamiiite fishing. were financed through its Africa Enterprise As in previous years, IFC worked actively Fund (AEF). AEF furnislhes direct assistance to to develop the region's capital markets. Two SMEs by providing financing of $100,000 to such investmiienits in South Africa are described $1.5 million for small enterprise projects that Financing Approved cost between $250,000 and $5 million. FY91-95 Established in 1989 as a pilot progr-amll, (millions of U S. dollars) AEF is a field-based operation with regional investment officers who process investmenits 500 Linder the supervision of IFC's regionial and * Finoncing for IFC's own account resident representatives. In 1995 AEF projects 400 _ accounted for- $20.2 million-S 19.2 million in Syndicatons and underwriting loans and guarantees and $1 millioni in equitv 300 __ and quasi-equitv-for 30 projects in 17 coUlnti ies. h S Country coverage has increased and AEF 200 a _ _ _ _ has become an important first point of contact 100 _ _ between IFC and a number of countries such as Benini and Cape Verde, wlhe-e AEF projects were 0 IFC's first. AlthoUtgh the voluLmle is not large, . a these projects have a significant development 1991 1992 1993 1994 1995 SUBSAHARAN AFRICA 25 tance with project preparationi and finance imobilization (see opposite page). In 1995 IFC established a new facility, the Enterprise Support Service for Africa (ESSA) to provide technical assistance to businesses after they secure financing. Assistance primarily will be in production, marketinig, management information systems and administrationi. ESSA will begin operating in the third quarter of cal- endar year 1995 as a pilot operation in Ghana. With ESSA in place, IFC will have a range of programs that cater to SME needs throughout all stages of development: APDF (pre-financinig), AEF (financing) and ESSA (post-financing). An array of technical assistance and advi- sorv services was provided to assist in the devel- opmenit of capital markets in the region. In Zimbabwe, IFC pursued its work to revise the legal framework, modernize the stock exchange and formulate a unit trust law. IFC helped to iimprove the regulatory framework for leasing in Cape \Verde, and in Malawi, its advice assisted authorities in the developmenit of a stock exchange. IFC played a catalytic role in helping a number of African countries in their privatiza- tion programs. For example, IFC is advising the Kenyain governmienit on the privatization of Kenya Airways. IFC is also providing advice to the Ugandan government on1 the privatization Pechazur continues of the fore- on page 24. IFC also approvedl investimienits in of its telecomimiunicationis sector, an importanit front of C6te d'tvoire'.; successful the Zani1bezi Fund, whiclh will make equitv anid step in the developmenit of the infrastructure fish ond shrimp export industry. equity-related investmiienits in Zimibabv.we and services required by business. Zambia, and in a regional venture capital fhLid IFC also regularly provides extensive for the CFA zone to meet the demand for risk advice on project appraisal and structuring, capital. In addition, IF invested in several leas either on1 a fee basis or in conjunction with an ing companiies, inclidinig Uganda's fi-st. investmenit. In some cases, IFC obtains trust IFC appiroved finanicinig for coaiipaniies iri ftunds to finance feasibility studies, such as on1 a variety of other sectors, including ph1arnMiaMce-- prefabricated housing in South Africa or on the ticals, tOurIism, generalt malnufacturing and cemenit sector in Eritrea. agribusiniess. In Cote dIvoire, for examiiple, an The Foreign Investment Advisory Service IFC investimicit will improve the distributioll (FIAS), jointly operated by IFC and the World system for low-cost generic drugs as drig costs Bank, completed a range of advisory projects in spiraled due to CFA franic devaluatioll. a ntimber of countries in the region. Studies of Cameroon and the Gambia were diagnostic, Technical Assistance and Advisory Services while the rest followed up on earlier work. FIAS IFC expanded its technical assistance and advi- helped to prepare a strategic plan for investment sorn services to businesses and governm11enits promotion in Malawi, and organized a series of during the yeai; with particular foCcus On SMEs. corporate planninig workshops for investmenlt The Africa Project Development Facility promotion in Zimbabwe. In Ghana, where FIAS (APDF), established in 1986 by IFC, the United has long been involved, it prepared an investor Nations Development Programme (UNL)P) andl road map that clearly identified legal and the African Development Bank, provides assis- administrative barriers to investor activity. In 26 NIERNAI ONAL F NANCE CORPORATION Uganda, FIAS collaborated with the Multilateral Africa Project Developtent Facility Investment (uarantee Agency to develop and Itn re(Po/isC to litL' / (Wini; ni/nii tcr of All/Ciii ctitrtprcnenU Is S<,Cki ig oatd icc to cxpl iit or inistall an inivestmiient tracking and managemenit ilt'riiic- Iz (siii5/t ,/ slortiv VI' cs, the Airicai I/)c//lfopinci;t Lfionk (Al13), 1Fl- informatioii system. aWIIl lic t1 "NI P cstulibisl'ted tl,. Albica ProIcct Oc l clo pine;; i F//cilitr (APDl)F) ini 1986. IFC and the World Bank worked together 'lIctircilitY ivorkLs toaccclow it, til.c zIt,lolllpll t(fPI ot / if)ltl,-ti VC ,r-ll; a fI tt'l rli>scs o II- to produce private sector action plans for a number of sub-Saharan countries. In 1995 Ctdl /i ntMl ; iet 11 n' local eiitrprt'/i,C/ s ill /'u ti) stinii//titt' slIstMi11/b/llC CtC0IlOIiC assessnmenits to identify constraiints on private /I iti n;ii/ p/t////t; / ' i ;//Atn'i it. It rl i/li's / t lien 1 issisr / c it i;/s is ti e sector development beganl in Namnibia anid wer e seek liie,1 ,1 n (il Oi; Wig; / ilt /i7/itiC i t ;i llil tCeli i. itip tilc p s, nlit iCltl't /i,It (j ,ility filli; cill, concluded in Carneroon, Cote d'lvoire and ,1I ll/c'l(lt/OItt' Ct// t11;1tb/lt ftinll/nci/( tern. A IP )F uli/ti//y hclps t wirepucacl, ,r s ob'tolil Mozambique. A policy framework was devel- filloiii/ g t(oIr Pn' octs n/11 7 ;gig rt//ll X520,000) to SIT i//il//lion, Iit /l!'o c// lsidcf rs Sl/liCle/ oped for Ethiopia and Uganda. IFC and the pnltjtets likelh ti litii', ai S(iiiliciiin ccoi/o/i/ic i/ip/iIt i tI lic iSi hotlioitlY AO)Piilso NWorld 13ank also cooperated on other private sector issues, such as financial sector develop- ment, countrv assistance strategies and donors' glZts< f0r.A11F'S is roi-id 1(,YlA/L)13, IF(:C',UNVand ll(thgi vmincia(7t o! f l ill(Il- Consultative Group meetings. .it rA isopr/I/itl lv At dc Fccbni )V niiic III kiiilt of I/it To alleeviate the shortage of well trained tnil co//itis s;;it of it/i ii tlso p/il 'i le liiiicnl i/ssistt ii / ku; l. P1 )F I/i/s anid experienced maniagers in the region, IFC t'gniollill fliisSiolls ii; Allidial, H-arart / ,,tl/ Niirobi, ti/i/I C[lt0/I il' bioitis fit Atoltl helped launch the African Management Services F)ii/ 11/ iiidl hi/in ii ut's/ illur. i 11 l7cilit oipc/ -tit's tis t/ 7N' I )P proict't, iittl IF( ,F t is Company (AMSCO) in 1989 with UNDP anld t'xcC/itilig t/gt/ley !cespoisilcll 1)0 i/i,/litigiig 1litc prltic-t ai;id AllB /LI ic/iotoil sftIls(lt. the Africain Development Bank. Designed to help enterprises become more internationially fi)iiriog Co/rot l ' r / 994, (PI )F 1,('/p,ni/ 0 ' ' ' i/li/io/i iti //t ti,l/ cqoitv ti;ititc competitive, AMSCO contracts experienced inl Pir 39 pr/it/ ii; lCl / /1 trr I/it/i tsti/i/t/ ttlll in 'st;i'i it / ststf- 4 i/im. business executives to train local sta ff managers 'lb t'sc prttc'ei il/ 1' ex oet itt' it ' t/iil __1))1 iin;s ti/i/t i A Ptf-lit to become self-sufticient. UNDP and governments / iSe / 2)2Cr//et/ iii to / till M/i Ili /;it/' ti//t i/I(.111tt,wtioi /i iiD hat In~ ~ ~~~~1ss ISS t'() 71- p-cloICCIs Il l 29 C010-10 W1z t-e,l I07,llCICl. 7tCi i{lb{)lit l 6,00()e jiob, *with, e tioio,tcd, of 11 idustrial countries provide grants for tvo funds. OCne makes loans to companies that have totil il/ 't'stil;ilclt tcbs ot Si 1 i//illi/i,; o It /'li/eli 0/ M I)F I; t'lcl Ir/isc l//i; I//iI 't ' managemenit service contracts with AMSCO but Jilui;iieill, llt/tli/i5g X211 I)l itioti. lack foreign currency to cover expenses incuLrred under- the contract. The other partially finanices the training of local staff and maniagers. AMSCO signed managemenit contracts withl 10 companies in 7 countries during calen- dar year 1994, bringing its total to 22 in 11 countries, with 44 business executives on sec- ondment arrangements. A total of $9.1 million in loans and $4 million in traininig grants were approved fo r sub-Saharan Afirican companies. SUB SAHARAN AFRICA 27 Sub-Saharan Africa 1995 Project Approvals Financing (US$ millions) IFC Financing Other Financing ,>sAh *S,o( pTotal Total Description ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ *A $' SProject Project Description 0| 5O8; 9,c,,4\ 1 C>\z 5 0Zb5\ e d Financing Cost Benin Bank of Africa, 13eninl Increase the capital of a commercial bank through par- ** ** (BOAB)3 ticipation in a rights issue (AEF) Union Beninoise Proimiote life insuranice and offer alternative savings 0.1 0.1 0.7 d'Assurances-Vie products through the first pr-ivate life insurance institu- tion (AEF) Cameroon Comrplexe Avicole Purchase a 1.2 hectare poultry farm anid rehabilitate its 0.4 0.4 1.5 Mvog-Betsi chick-hatchinig and chickeni feed fitcilities (AEF) Congo Elf Congo Develop the N'kossa offshore oil field in partnership 50.0 50.0 1,600.2 with other oil companies Engen Congo Assist a South Afirican companly finance its shaire of the 15 0 2.9 28.5 45.0 91.4 99.8 N'kossa oil field development and other work in the HIlaute Mer area Cote d'lvoire Block Cl-Il Hydrocarboln Produce 24,000 barrels of oil a day and supply 90 mil- 30 0 27 3 40.0 97.3 161.0 Developmentb lion cubic feet of gas fromli an offshore facilitv for power generation Conipagnie Ivoiriecne Construct a 100 niegawatt gas-fired power plant tlider a 16.9 0.9 17.8 70.0 de Productioni 19-vear concessioni agreement with the governmenit cl'Electricite Etablissemenits R. Restructure the spinniniig and weaving operations of the 1.9 1.9 1.9 Gon freville largest textile company Laborex-C6te d'lvoire Replace delivery vehicles and equip a warehouse fo5si b Project Project Description IPPI' a~~~~~~~~~~~ cp~~~~ inancing Cost Tanzania (continued) Tanzania Leather Acquire and rehabilitate the assets and htisiness of a 1L.( 1.0 5.3 recently privatized tannery in Nlorogoro to produIce bovine and goat/sheep leather (AEF) Tradeco Oil Industries Refine imported crode palm oil into oils andl fats for 0.9 0.9 5.4 regional markets (AEF) Uganda' Rainbow Academy Build permanienit facilities for a private primary and sec 0.8 0.8 1.9 Liimited ondary international school in a Kamilpala suburb (AEF) Uganda Leasing Establish the tirst leasing company 0.4 0.4 1.5 Companiy Limited Zambia Kaila Lodge Limited Expand a tourist lodge on the Zambezi r iver in the (.2 0.2 0.4 Chiawa game management area (AEF) Zimbabwe Chirnwala Farimi Expanid a rose-growing operation through the cultiva- 0.4 0.4 1.3 (Pvt.j Limited tion of a second hectare (AEF) FMB Holdings Limited increase the capital of a merchant bank througIh partic- 0.8 0.8 8.1 ipation in a rigohts issue Itachi Plastics (Pvt) Manufacture plastic bottles and packaging materials 0.3 0.1 0.4 1.0 Iimited for the local narket (AEF) Stonie Holdings (Ptv) Set up a granite cutting and polishing plant to prepare 1.5 1.5 4.1 Ltd. and Zinirock blocks for export (AEF) Iinterinationial (Pty) Ltd. Regional CFA Capital Establish a regional private equity fund to invest in 9.0 1 9.0 41.0 Development Fund e(Luity in existing7 companies in West Africa and a company to maniage it Zambezi Fund Establish an equity and equity-related fund to invest in 6.1 6.1 33.0 later Stage financings in Zaminbia and Ziinbabwc guarantee t risk manogement facility $ standby loan a. Not included in the total number of 1 995 approvals. Included § swap in the total number of countries. *"less than $50,000 b. Included as two protects in the total number of 1995 approvals SUtB-SAHARAN AFRICA 3 1 Sub-Saharan Africa 1995 Technical Assistance and Advisory Projects Focus Description Cameroon Foreign direct investment FIAS conducted a diagnostic study of the investment climate. Cape Verde Capital market development IFC is advising on improving the legal and regulatory framework for leasing. Foreign direct investment FIAS assisted in the evaluation of the Investment Promotion Agency. Eritrea Project technical assistance IFC secured funding through its Technical Assistance Trust Funds Program to support a feasibility study for the design and construction of a cement plant. The Gambia Foreign direct investment FIAS conducted a diagnostic study of the investment climate. Ghana Foreign direct investment FIAS conducted a regulatory review. Kenya Privatization IFC assisted the government in restructuring Kenya Airways, the national carrier, and is maniaging its privatization. Project technical assistance IFC arranged to provide technical assistance through its Technical Assistance Trust Funds Program in diagnosing and recommending solutions for mainte- nance problems experienced by a textile mill, and helping implement its recommendations on a pilot basis. Malawi Capital market development IFC advised the authorities on developing the Malawi Stock Exchange. Foreign direct investment FIAS assisted in the design of an investment promotion strategy. Mali Project technical assistance Through its Technical Assistance Trust Funds Program, IFC secured funding for a study on technical and infrastructure aspects of the proposed modernization and expansioni of a cement plant. Mozambique Project technical assistance IFC supported a market assessment on modernizing a coal-handling port for specialty coals through its Technical Assistance Trust Funds Program. Nigeria Corporate finance IFC is advising United Africa Company of Nigeria, the largest private trading group, on strategies for agribusiniess, food processing, forestry and wood-related industries, management developmenit and new investment opportunlities. South Africa Project technical assistance IFC secured funding through its Technical Assistance Trust Funds Program to support a market and feasibility study for a plant to convert local wastepaper into tissue products. Project technical assistance Through its Technical Assistance Trust Funlds Program, IFC supported a feasi- bility and project identification study for a joint venture to produce components for low-cost housing. Tanzania Capital market development IFC advised authorities on formulating capital market legislation. 32 INTERNATIONAL FINANCE CORPORATION 1 995 Technical Assistance and Advisory Projects Focus Description Tanzania Capital market development Through its Technical Assistance Trust Funds Program, IFC committed funding (continued) for a feasibility study on setting up a specialized institution to manage a unit trust to support privatization through domestic investment by individuals. Proiect technical assistance IFC supported project preparatory work on a preliminary design for a data- oriented telecommunications network through its Technical Assistance Trust Funds Program. Uganda Foreign direct investment FIAS installed software developed for foreign investment tracking in the Investment Promotion Agency. Project technical assistance Through its Technical Assistance Trust Funds Program, IFC committed funding for initial legal and technical work on privatizing postal and telecommunications services. Zimbabwe Capital market development IFC is providing advice on the legal framework and modernization of the Zimbabwe Stock Exchange. Capital market development IFC has provided extensive advice on formulating a unit trust law. Capital market development IFC is advising on revisions of laws for nonbank financial institutions. Foreign direct investment FIAS organized a series of corporate planning workshops to facilitate the preparation of a strategic plan for investment promotion. Privatization/project Through its Technical Assistance Trust Funds Program, IFC arranged support technical assistance for a team of experts to assist the national air freight carrier in its initial phases of privatization. Regional Project technical assistance IFC secured funding through its Technical Assistance Trust Funds Program to support a fact-finding study anid implementation work on a new regulatory framework for a securities market for countries in the West African Monetary Union. SUBSAHARAN AFRICA 33 a U U -o 0 0 U a 0 a U C) a- (1) a a- C C a z a C -c U U Regional Report Asia IFC Regional Members: Banigladesl, Ciina, Fiji, I,udia, Indtioniesia, Kiribati, RpuIblic of Korea, Lao People's Democratic ' Repuiblic, Mnlnysia, Malelives, Mvfazrsia/ll Islands, ... Federated States of'Micro, esita, Monigolia, . - MUyanmnar, Nepal, Papuiu New Guinlea, Phzilippinies, i; Solomon Isltand(s, Sri Lanlka, Tliail(nid, Touiga, - - anlautau, V'iet Nan,i, a(1nd llWestern Samoa(. ,., . Followinig the success of a numlber of East Asian countries such as Japan and South Korea in developing their economies through growth led - by the private sector, economic policies in Asia t , et . ~ were increasinigly supportive of private btisiness - in 1995. The macroeconomic framework in most countries was stable, as policymakers reacted quickly and pragmatically to serious fluctuations in external capital flows. Exchange - and interest rates allowed the private sector to remain or become internationially com-petitive and inflation was kept down to an average of 10 percent. . 11_ The private sector responded with high investmenit outlays. While most of the capital came from domestic savings, foreigni investment - V- aind external loans wer-e also important fundliig " v sources, especially for the region's growing infrastructure requiremenits. To facilitate greater foreign investment, legislation and incenitive svs- tems have been improved and made more trans- ' . parent. '[he combination of sustained interest , by OECD countries and tighter liquidity in Asia's developing economies pushed larger com- panies in the region to turn to the internationlal - capital markets. However, turmoil in these mar- kets in late 1994 and early 1995 slowed the flow of medium- and long-term capital, which these economies urgenitly need to meet large invest- l menit requirements. As a consequence, the region's demands for long-term debt finanice were only partially met. While the pattern of market-led develop- long-termii fundinig at reasonable rates. The rela- IFC invests in Bangkok's Mass ment and private sector initiative is strong in all tivelv recent reforms in South Asia have made Transit System to reduce the nearly 50 days per year resi- Asian economies, major differences remain, the international communiity more confident dents spend troveling by road. First-tier companies in most East Asian econo- about investing in the area, but those reforms mies, particularly Korea and Malaysia, have little have also created needs among domestic compa- difficulty raising local or foreign capital, but nies for new investments to restructure and smaller companiies still face obstacles in findinig adjust to stronger internlationial competitioni. ASIA 35 Mass Transit System Corporation itn Bangkok emerging economies, IFC focused particularly .Atier siifh'ril g sonie of the worNd/qS w1orst traffic proben/lis, by)r the cu1d of till ficalude on capital markets, infrastructure and general Bat igkok i/i have ai scgreg4 ted 1iioiss tra tisit si 'stetli to rl ic V coilIgCstitIl iti its (cii7tiail manufacturing. Priorities in 1995 included: buisiness ulistriit. lFlC Ias approved a proije-t to coilsirlict, operatc ,n' l mailltaill (III * catalyzing access to local and foreign c/c va tdl tail S!stotll iotis:stitig eo tw0o scpa iac tI jiles wvitli six-calr tlilis to c(rlr llp to resources, * fostering intraregional investments, and 50,1000ptssipcis tilzl iotiir ill ac/i dircctiitii. Tlit' estinia ted lsof 0/tit' t-ti i-sit sy*lctil is * supporting a larger number of small and SI. 6 bwi//i1t. It v il/ 1w( iuil i/ onl it tlO utiy 1basis bg al cotisSort iiin of Sienictlis tcria t,( medium-sized enterprises. iitid It il-I1i'/ioi PI( ( Tlidtid nils lirgcst cotmistriitiuitl Cotlipli in') alitll spOsolSrcd l9l' IFC remained an active investor in tradi- Tal tiiv tig P 'dlit t' m oipaiiy Limited, a Tl/iai i('ll Estat tt ievc/opln t co ctipanYl tional industries in large countries such as India and Indonesia. In China, IFC's direct project 7'/1is iS the first rtit iss-triSit brai/ sisteni leitlg liilt tillil operated coliipletchv il thle pIi- support doubled across a number of sectors and l(itct scator otil ti/yitild1/oprantcl/trisf7 to/r basis since tlit Newil iork sit biv'iv /(( it,ca rs tigo. provinces. IFC also worked closely with govern- IF1 stritictitrci tuie proIcta' fi)s/1 i(itc plti7, /Ie'/pitI to itimprolc conlcession'mll titi colistitc - ment agencies to improve the use of foreign limi firtaiiiymcnts, wid 1c-clopcd I isk iniii~qatioii ~trotc,~iinvestment in critical areas. To support a more market-oriented business environment in Viet Nam, IFC focused on sectors that have recently Tlic systctti is 1i /iig/ili' visilc coItpOtlip'llt oftic 7 I iili gol'ertllInTIClt s progrtili to opelt opened to competition, and advised the govern- lit' n' a teas ofe inlfrastirluctuire to the privi tc sectorl it] otnl'il tlt gii'c tihi plibli/ic tlir cti iic llt ment on expanding reforms in the policy and s'ITices. Tll/ 1need is cr itica7. Baiigk1tk rcsidollts iiov spctid tieur/l' 50 wor king dalrs 1i regulatory framework. Vt1i1i- titlyClivg 1ro1'tid, t7itil /id ICi re/s frCtii-otil ((to eC/hilist a;r e tci lilig aI ila7jol 1ircilltll A growing feature otf I FC activities is lIaca id. Tl'i rail s ysicnivill not 0t1io o /el'iY tt tl/li-tiit tod cIt da,7ily! trnai'cliug tiile bJit it assisting Asian businesses with intraregional ni/i t1il5st lie/p reduce Pit//itioli, excess ],it/ consit tptilt iiitii nicth prohilcliti. investments. Corporations from the newly industrialized economies of Korea, Hong Kong and Singapore are shifting their labor- and Following the path opened by East Asian resource-intensive activities to lower-cost coun- companies, large companies in South Asia were tries in the region. At the same time, the large able to access the international markets in 1994 conglomerates in India and Southeast Asia are and 1995. China and Viet Nam, in transition to expanding their investment horizons, particularly market-oriented economies, saw unprecedented in China. This trend creates a natural role for IFC growth in output and income, although several in helping these enterprises to access capital and institutions necessary to support full-fledged understand their new business environment. market economies are still undeveloped, and Asia's smaller and poorer economies pose many key issues remain to be addressed. special challenges. IFC's strategy has been to focus on small and medium-sized enterprises Strategy and Opportunities (SMEs). In Bangladesh, for example, IFC pro- IFC faced major challenges in assisting Asia's vided a loan guarantee that mobilized local private sector in 1995. The region has both funding for SMEs through a leasing company. small and large economies-including the IFC also established a small equity fund in the world's most populous nations, China and Pacific Islands, where the South Pacific Project India-as well as economies at very uneven Facility continued to foster the development of stages of development. Several countries SMEs (see page 39). achieved growth rates higher than 8 percent in 1994 and in the first half of 1995. These coun- Project Financing and Resource Mobilization tries remained attractive targets for foreign In 1995 IFC approved 45 projects in Asia-43 in investment despite the turbulence earlier in the 10 countries and 2 with regional scope-com- year in international markets. Nevertheless, in pared with 42 projects in 10 countries and 2 with nearly all countries, the need for substantial regional scope in 1994. As of June 30, IFC's corn- additional infrastructure especially in power, mitted portfolio included loans and investments transportation and water is fundamental to pri- for 191 companies in 17 countries, compared with vately financed projects. 196 companies in 13 countries a year earlier. Adjusting its country and sector mix to The shortage of long-term debt finance address the needs of the region's most recently in many countries generated a strong demand 36 INTERNATIONAL FINANCE CORPORATION for IFC credit lines, particularly to help support staffs running daily operations. SMEs. IFC extended credit lines in India, Within the manufacturing sector, IFC Indonesia and Thailand, and concentrated on intensified its work in Asia's petrochemical institution building that ranged from traditional industry to meet its strong growth potential. activities such as leasing and banking to more Projects with a high development impact advanced products like securitization. In India included IFC's first investment in this sector in and Indonesia, IFC investments in two commer- China, supporting a polyvinyl chloride (PVC) cial banks will improve financial services by resin and film manufacturer. The first joint ven- stimulating competition. IFC also helped to mobilize the region's high domestic savings for Project Financing FY94 allocation to local investments. The need for (millionis of U.S. dollars) local currency in doniestic project funding has grown markedly in recent Years as the region's Financing approved for IFC's account 691 605 private investment opportunities mushroom. In Loans and swaps 522 387 Indonesia, IFC helped establish the first institu- Equity and quasi-equitv 169 218 tion in a developing countrv to focus on securi- D m 7 * ~~~~~~~Direct mobilization 752 624 tizing assets and issuing new debt securities. Loani svndicationis 752 559 This institution is expected to provide a model for many other countries in the region, making Ttldfinancing a 12 a significant contribution to the development of local debt markets. Committed portfolio for IFC's account 2,345 2,039 In a pioneering transactioni, IFC provided Loans 1,785 1,538 a $180 million loan and structured a U.S. com- Equity 560 501 m-ercial paper facilitv for Thailand's prenmier.' Committed portfolio held for others (loan participations) 1,181 1,040 finance company. The facilitv's novel structure Total committed portfolio 3,526 3,079 enabled IFC to mobilize financing for the first time for an emerging market client using the U.S. commercial paper market. It thus became ture of its kind in Chiina, the project will pro- the first private Thai company to diversify its vide a vehicle for technology transfer from the funding sources by accessing one of the most sponsors. The local PVC industry's small-scale liquid, deep and flexible financial markets in the plants currently operate with old technology, world-a market generally closed to emerging resulting in the need for substantial imports. market borrowers. The loan is the largest ever The companiy will reduce the supply gap and provided by IFC for a financial institution and make a significant first step toward modernizing was the first instance in which IFC syndicated China's petrochemical industrv. participations in a letter of credit. Because of rapid innovations in the Financing Approved region's industrial processes, products and Inar- FY91-95 kets, IFC supported a variety of manufacturing (millions of U.S. dollars) enterprises. As these economies have begun to deregulate and open up to more trade, IFC has brought together foreign investors with state 1500 enterprises undergoing restructuring. IFC also S Financing for IFC's awn account has provided them with extensive help in tech- 1200 nical, legal and environmental issues. More than Syndications and underwriting 50 percent of IFC's industrial projects assisted 900 - second-tier companies. Many of these are expanding rapidly but lack the financial and 600 _ _ _ management sophistication to access the inter- 300 nationial financial markets on acceptable terms. In the process, IFC helped a number of formerly family-operated firms become global players a a a with professional management and marketing 1991 1992 1993 1994 1995 ASIA 37 tribute significanitly to Asia's infrastructure even in couLntries where the legal and investmiienit framework is at an early stage of development. Technical Assistance and Advisory Services IFC provided technical assistanice in Asia through means that ranged from supportinig companiies with project preparation and appraisal to advising governmlenits on foreign investmenit and capital market development. In addition to expanding the variety and volume of advisory services-particularly in the region's _iemerginig economiiies-IFC held numllerous sem- inars in major cities on issues suclh as private sector infrastructure investment and new devel- opments in capital markets. One such conter- ence was a two-day seminiar for state electricity boards in India on structuring and implement- ing power puLchase agreements. IFC also provided broad-based restruc- turing and privatization advice to government- owned companlies throughout Asia. In the Philippines, IFC advised the governmlenit on the finanicial restructurinig and privatization of the Philippines Associated Smeltiiv- Corporation. Part of the largest copper smelting and refining complex in Asia, the companiy is an importanit source of foreign exchange for the country. IFC recommenided a plan to decrease its excessive debt burdenl and divest its majority government ownerslhip to private investors, yielding substan- tial sales proceeds. IFC also required an envi- ronmlenital audit of the company, wlhich resulted IFC invests in petrochemicals in The rapid growth of Asia's productive in expanded enviroinmenital studies for the China as Suzhou Huasu Plastics sectors has created pressure on infirastructure, entire inldustrial complex. builds modern PVC production facilidmesr which demands large amounits of r isk finanice In Viet Nam, IFC advised the govern- including long maturity debt packages. IFC menet on building its finanicial sector by estab- therefore expanded its activities across a range lishing capital markets and developing a private of infrastr-ucture projects in a variety of coun- leasinig inidustry. In capital market developmenit, tries. In Viet Nam, IFC invested in the first pri- IFC worked with the governmient on legislation vate sector port, which will contr-ibute signifi- to establish a securities commissioni as well as cantly to expandinig economic activity in a new on a securities law. IFC also helped the govern- industr-ial areai and boosting efficiency in the menit to shape regulations on establishing antd distributioni of critical goods such as fertilizers operating leasing companies. and agricultural products. The port will also The Foreign Investment Advisory Service provide an alternative to the congested Saigon (FIAS)-jointly operated by IFC antd the World Port, where increased shipping traffic has otit- Bank-focused on facilitating businless links grown the existing infrastructure. Tangentially, an between foreign investors and local supply firms access road to the terminal, which had been in Indonesia and the Philippines. FIAS exam- designed to bypass a towin, was rerouted at the imed the policy implications of promoting for- villagers' request to connect them directly with a eign direct investment in infrastructure in major nationial highway. The project demon- Chinia and Viet Nam. FIAS also prepared a pro- strates the private sector's potential to con- motion fiamework for Thailand's eastern 38 INTERNATIONAL FINANCE CORPORATION seaboard, an innovative project that highlighted Soutlh Pacific Project andt Investmient Facilities the first comprehenisive regional investment t IF et', hl/islcd tlet' Sollthi AIc ific Ploiect Facilit, (SPPf) inl 1990 to prol,idc n'cclilic,l strategy. Based on a FIAS recommendation, the lss5s nJ-ce aim soppi [oll stl t tO andil nel, ', -irz ed pr ii'lte sec1tor' tllerpnises ill ilOiC Asian Development Bank is now processing a comilics ill l/l 5c (/ (I i/'ifIc . FF ad r i( t1 - ti lc oillt'r ofot COZ r-omIItl ies, IleC large technical assistance grant to the Thai gov- f i tfilc/lt I gllcs I Lt-tlLZillM (ljflS oSirii c tI pi-cpolling /lmiktlcWl im2cltmcuZit p I opoSo Is I-oI pw()jcls ernment. With FIAS assistance, the government of Indon esia has liberalized ownership and sec- rt ii,'i Inii $250,00 Pt) to$ in illioii It itiai' also colsiuier proj-eclts oaisilIc tili i I Oge toral restriction controls for foreign investment. that a i1c liit' to ii a i ic t nt eato iii ic O tt I e'tipn i t nhllacl PPF does lot In follow-up work, FIAS has been helping the plot leif c t fditia ticial assisIt iii cc; it seeks iisteatl to hielp Spotnisors t niseltiami ltig At government review policy to encourage back- proicets tbttil lct-til commt rcial 7liks and finiati-l iiisitlitiois. ward linkages between foreign investors and domestic SMEs. A ct 7itiltig attdll OCt-cciO1t1til' sfcrpallSilng illitill opOtWtiOtial tOagetS w'lli t 1 l111ill ilig IVitl- litllg uhet, SPPF hais bieen L'x,l led1 ti fireit rs ,As ofitit mtt 30, SPPFh ias assistetl1 43 ptoicctS ain litc/pc' I i t Xisc$24. 1 mililion ill tolliig tr- projects wvit li att aggtgI tt eO/ ot- 3 4.3 milli/O, crcattt/im oier 900) jollS t1,tlgorit-w ini $S //t/ jmillo. in 4te cigl c h(tti tllgc kt'titgiiizi_itt tilit' ned ttl COttMpletnictit SPI-TF finaticitii>g of'st till ati ltlc -sz_cd 'ltclt - pfrsc, IF.C nill (stallishl aI Pilot Q1U Itist ll1tyV leiVstitlt t Ftciiliiv (QLIF . QEIF wvill inrcst letii ieei S5)0 ) tnil S-300,00()0 ill piltte sc nit comtiptiltmies iil .Soiti 'lPacific iSland canllitrtics tltinigh itistl itltctits riligitig haitiill cL ClirrTleltC, telcetllt,iati plteft't (til ht'fls tio U S. Iaollar-dletiit0ttinat.t' sith1tdiiijt dtel b10ns. Iil tlht ol'st'itc oI tI,t' Va pee l tpai tualm trkcts, QFIF ittll provitic ti str-o iii4ititic-itig ltat' IPt citi bit' projc.ts to stipple'- mllnilt llt' regitl 's ltlitittd ip 1i/li' a tid Sctrce c1)1i tcitia 1t/k lou tts. ()Ite/suL c SPP/ pl op uidell ift /995 ii ltS to iltp AlNlssitit Expeditttts tutui Tomts itt P"/""' 'n' N"I Gllil"'d C 1111'1'''' t ' $'2'5^(}( (olzZlphib}it}s airlalft Serli,ic t-ol PaciljSlgcrlS .Qlit t Nic ( it I ei t ticta lc tI $23i0,0l () tiepil tttt captil lrer i t'lriit' locatioptss 'Sitlicc islfiul lecstiltiojols hua''e io iitfiel'us, t,lt six-st'at att,,pliltiotus atcrtift tclct it'tl iv ill pre- Vi,le t il air access. ASIA 39 Asia 1995 Project Approvals Financing (US$ millions] IFC Financing Other Financing >5\H o\0x'5 Total Total kA J' ~~~~Project P~roject Description a kt- G 0 Financing Cost Bangladesh Industrial Development Support a leasing company by providing a guarantee facilitv 3.0* 3.0 6.5 Leasing Company of Bangladesh Limited China Dupont Suzhou 13uild and operate a polyester chip and yarn plant with 30.9 4.2 52.0 87.1 124.4 Polyester Company annual capacity of 80,000 tons in Suzhou, jiangsu Province Limited Nantong Wanfu Special Establish an integrated eel operation with a farm and a 7.0 3.0 8.9 18.9 30.0 Aquatic Products Co. Ltd. processing planit for exports to lapan Newbridge Investment Establish a venture capital fund to make direct invest- 10.0 10.0 100.0 Partners, L.P. ments, primarily in China l Piaggio Lyman Foshan Establish a world-scale moped, scooter and motorcycle 20.0 2.5 10.0§ 32.5 183.1 Motorcycles Co. Ltd. plant using modern technology and design in Foshan Guandong Province Plantationi Timber Expand the operations of a medium-density fiberboard 20.0 20.0 20.0 Products (Leshan) Ltd. company in Sichuan Province Suzhou Huasu Plastics Build and operate a PVC plastic production and calender- 14.1 2.5 15.8 32.4 64.7 Company Ltd. ing facility in Jiangsu Province India Centurion Bank Limited Establish a new full-service private bank 5.4 5.4 33.0 Creditcapital Venture Increase the capital of a venture capital fund through par- 0.6 0.6 3.9 Fund (India) Limited ticipation in a rights issue Export-Impor-t Bank of Provide foreign currency credit lines to private, export-ori- 25.0 25.0 25.0 India ented small and medium-sized manufacturers lb Valley Power Private Build a 420-megawatt coal-fired power plant tinder a 30- 50.0 20.0 80.0 150.0 720.6 Limited year build/own/oper-ate agreement with the state electricity board of Andra Pradesh IL&FS Stockbroking & Set up a securities brokerage confor-ming to inter nationial 0.6 0.6 3.2 Investment Company standards Limited India Equipment Leasing Expand the operations of a leasing company by subscrib- 0.3 0.3 1.3 Limited ing to a rights issue J.M. Share & Stock Support a leading stockbrokerage through participationi in 1.2 1.3 2.5 13.6 Brokers Limited a rights issue Prism Cement Liilited Establish a state-of-the-art cement plant with a 2.18-mil- 15.0 5.0 15.0 35.0 183.0 lion ton capacity in northern Madhya Pradesh Rain Calcining Limited Produce calcinied petroleum coke for the alminLIum iiidus- 18.3 5.4 1.0t 24.7 94.2 try and co-generate 45 megawatts of power- for sale to third i I parties 40 INTERNATIONAL FINANCE CORPORATION 1 995 Project Approvals Financing (US$ millions) IFC Financing Other Financing 'A ~~~" ~Total Total ~~~p ~~~Project Project Description \o' f i Financing Cost India (contnuedl RPG Communications Develop and operate a cellular network in Madras, paging 8.3 8.3 86.3 Investments Ltd. systems in six major cities, a nationwide VSAT telecommu- nications network, and electronic mail and a cable TV net- work in Calcutta South Asian Regional Invest in a venture capital fund which concentrates on 8.0 8.0 32.0 Apex (SARA) Fund direct investments in six different states SPIC Fine Chemicals Finance the construction of a detergent manufacturing 0.9 0.9 0.9 Ltd. plant in Pondicherry through participation in a rights issue SRF Finance Limited Expand a general financial services company 15.0 5.0 20.0 20.0 Indonesia P.T. Bakrie Kasei Double purified terephthalic acid production to meet 30.0 3.0 33.0 210.0 Cdrporation increased local and regional demand and supply P.T. Bakrie Kasei Pet Corporation P.T. Bakrie Kasei Pet Increase production of polyester resins by 40,000 tonnes a 12.0 2.0 14.0 68.9 Corporation year to produce plastic bottles for domestic and regional markets PT. Bakrie Pipe Expand and upgrade an electric-resistance, welded steel 20.0 9.5 13.0 42.5 99.5 Industries pipe mill in Bekesi, West lava P.T. Bunas Finance Finance U.S. dollar-denominated leases for exporters through a 10.0 6.0 16.0 16.0 Indonesia leasingcompany P.T. Citimas Capital Establish the first specialized securitization and credit 1.4 1.4 9.1 Indonesia enhancement institution P.T. Hotel Santika Build and operate a 286-room hotel in lakarta for a wholly 9.0 5.0 14.0 40.0 Nusajaya and P.T. Indonesian-owned hotel group under a new subsidiary Grahawita Santika company PT. Indo-Rama Expand polymiier capacity, diversify into a polyethylene ter- 30.0 2.5 67.5 100.0 335.4 Svntheticsb apthalic resin plant and expand weaving operations of a textile company P.T. KIA Serpih Mas Expand and upgrade a ceramic floor tile manufacturing 15.0 6.4 55.0 76.4 106.1 plant in Cilengsi, WVest Java P.T. Panin Overseas Support a leasing company by contributing equity 2.0 2.0 17.4 Finance P.T. South Pacific Viscose Expand the capacitv and refurbish the production lines of a 2| 5.0 5.0 35.0 65.0 127.0 rayon fiber company in Purwakata, West lava Republic of Koreall ll Hae Un Dae Development Ftind the renovation of a hotel property by participating in 0.3 0.3 Co., Ltd. a capital increase Philippines l All Asia Capital and Finance the expansion of a general financial services com- | 1.7 1.7 17.3j Trust Corporation pany by subscribing to a rights issue L ASIA 4 1 Asia 1995 Project Approvals Financing (US$ millions) IFC Financing Other Financing or-- - \ rTotal Total Description ..OC "Financing Cost I Philippines (continued) Sual Thermal Power Build anid operate a 1,200-megawatt coal-fired power plant 30.0 17.5 200.0 247.5 1,400.0 Plant north of Manila to sell power to the nationial power corpo- I ration tinder a 25-year agreemuent Sri Lanka a linion Assurance Limited Finance the operational restructurinig of the first private 0.5 0.5 3.3 insurance companv throughi participation in a rights issue I Thailand I Bangkok Mass Transit Build and operate an elevated rail-based mass transit 5.()0 50.0 1,648.0 System Corporation system in cential Bangkok| Limited Bank of Asia Limited Fulid the expansion of a major bank by subscrihing to a 1.1 1.1 28.5 rights issue I Fiianice One Public Enable a private sector financial institution to obtain 30.0 150.0 180.0 180.0 Coompaiy Limited fundiig froni the US. commercial paper market Saha Farms Company, Set up a grandparent stock poultry farm and incease pro- 25.0 10.0 10.0 125.0 70.0 100.0 Ltd duction of chickens and broilers for a new processing plant Shin Ho Paper Increase the capital of a newsprint paper company throLugh 3.1 3.1 3.1 (Thailand) Company, participation in a rights issue Limited Tuntex Petrochemiiicals Finance polyester resin productioni bv the first pur ified 1 .0 1.0 37.0 (Thailand) Compaiy, terephthalic acid plant through participationi in a rights Limited issue I Viet Nam Baria Screce Joint Build and operate the first privatized deep-water port 30) I 2.0 5.0 10.0I Venture Company facility on the Thi Vai river near Ho Chi Minh City I Viet Nam Foremost Construct a dairy processing facility to produce condensed 8.0 7(0 15.0 30.0 Dairv Company Ltd. milk and yogurt from impor-ted milk powder and other raw materials Regional I KI)LC Lease & Finance Provide terimi and subordinated loans to a wilolly owned 15.0 2.0 17.0 17.0 Limited subsidiary of Korea Development Leasing Company to I finance cross-border leases in East and Southeast Asia Quasi-Equity Investment Establish an investment fuLid on a pilot basis to pirovide 2.0 2.0 2.0 Fund funds for small and medium-sized enterprises in ninle Pacitic Island couLitries * guarantee t risk management facility $ standby loan a. Not included in the total number of 1995 approvals. § swap b. Inctuded as two projects in the total number of 7995 approvals. | 42 NTERNAICON IAL FINANCE CCIRFu,RATION Asia 1995 Technical Assistance and Advisory Projects Focus Description Bangladesh Project technical assistance IFC advised Interniationial Textile Mills on the technological and commercial feasibility of its fabric finishinig plant. China Capital market development IFC is providing assistance to the new regulatory commnission in reviewing new securities regulationis and development strategies. Commercial bank IFC is working with Swiss Bank Corporation to provide assistance to newly institution building established private banks to strengtheni their institutioni building efforts. Foreign direct investmelnt FIAS reviewed the policy implications of promoting foreign direct investment in the intfrastructure sector. Project technical assistance IFC arranged support through its Technical Assistance Trust Funds Program for an assessment of the training needs of professionals working in non-state commercial banks, to promote the development of management skills and help bring operations up to international standards. Project technical assistance Using funidinig provided through its Technical Assistance Trust Funds Program, IFC supported a feasibility study and strategic review for a joint venture to build electric vehicles for limited city application for both local and internationial miiarkets. Project technical assistance Through its Technical Assistance Trust Funds Program, IFC supported a feasibility study of an export-oriented poultry growing, processing and marketing operation. Techlnical and financial advice IFC reviewed the feasibility of constructing and operating a polyvinyl chloride production plant in Suzhou, Jiangsu Provinice, and assisted Suzhou Huasu Plastics Company Limited and its sponsors in structuring financing for the project. India Corporate finanice IFC assisted Hindustan Machine iools Limited, one of the largest state-owned conglomerates, in developinig a comprehensive restructuring plan. Project technical assistance IFC assisted Or issa Lighting Limited by assessing the viability of establishing a fluorescent lamp manufacturing plant. Project techniical assistance Through its Technical Assistance Trust Funds Program, IFC supported a seminar for selected CEOs and senior executives of small and medium-sized enterprises on ways to improve management effectiveniess. Project technlical assistance Through its Technlical Assistance Trust Funds Program, IFC arranged support for a project identification and development study on Iinking high-technlology data processing firms with potential foreign partners and suppliers, including those based in developing countries. AS A 43 Asia 1995 Technical Assistance and Advisory Projects Focus Description Indonesia Foreign direct investment FIAS conducted an extensive survey on further liberalization of ownership and control restrictions. Project technical assistance Through its Technical Assistance Trust Funds Program, IFC secured funding to support a market and technical assessment for the proposed expansion of a ceramics plant. Project technical assistance Through its Technical Assistance Trust Funds Program, IFC provided funding for a technical market and commercial feasibility study on1 establishing a new 141-bed private sector hospital to serve a major urban center. Project technical assistance IFC provided new equity and completed the restructuring of P.T. Semen Andalas Indonesia, a cement company, significantly reducing its debt. Lao People's Project technical assistance With funding arranged through its Technical Assistance Trust Funds Program, Democratic IFC supported an expert review of the foreign investment and commercial Republic laws and assessed their impact on1 private sector development. Micronesia Foreign direct investment FIAS focused on the appropriate legislative framework to attract foreign direct investment. Philippines Corporate finance FIAS reviewed the policy aspects of developing backward linkages between foreign and domestic firms. Privatization IFC is assisting in the financial restructuring and privatization of Philippines Associated Smelting and Refining Corporation, one of the largest copper smelting and refining companies in Asia. Sri Lanka Asset securitization IFC advised Lanka Orix Leasing Company in structuring a bond issue secured by lease receivables. Corporate finance IFC was retained by the Lanka Orix Leasing Company in Sri Lanka to help structure the company's and Sri Lanka's first asset-backed security issue. Thailand Project technical assistance FIAS prepared a framework for a promotion strategy for the eastern seaboard. Project technical assistance IFC secured fundinig through its Technical Assistance Trust Funds Program to assess the feasibility of converting gasoline/diesel vehicles to use environmentally compatible compressed natural gas. Project technical assistance With funding provided throughi its Technical Assistance Trust Funds Program, IFC arranged support for a review on cost-effective technologies for a pro- posed pulp mill to recycle waste bagasse. 44 INTERNATIONAL FINANCE CORPORATON 1 995 Technical Assistance and Advisory Projects Focus Description Thailand Technical and financial advice IFC is reviewing the possibility of creating an integrated petrochemical complex (continued) at Rayong, and is assisting Thai Petrochemical Industry Public Company Limited in structuring a portion of the financing for the project. Viet Nam Capital market development IFC provided technical assistance on the legal and regulatory framework for the development of a securities market. Foreign direct investment FIAS reviewed the policy implications of promoting foreign direct investment in the infrastructure sector. Project technical assistance IFC advised a major European hotel chain on its expansion plans in Viet Nam. Project technical assistance Through its Technical Assistance Trust Funds Program, IFC supported an assessment of a major urban hospital with a view to setting up a pilot private hospital with upgraded service standards. Project technical assistance Using funding provided throughl its Technical Assistance Trust Funds Program, IFC is preparing to coordinate a project on1 a pilot study basis to assess the feasibility of using cold bitumens/stabilized materials for road building. Western Samoa Foreign direct investment FIAS reviewed the investment incenitives regime. Project technical assistance IFC committed fuids through its Technical Assistance Trust Funds Program for a technical assessment of a small power plant to generate power from agricultural, municipal and non-toxic industrial waste, including bagasse. Regional Project technical assistance Through its Technical Assistance Trust Funds Program, IFC secured funding for a program to promote industrial eco-efficiencv in the Asian business community, through such means as developing training materials and con- ducting pilot implementations. ASIA 45 A:.o s * ;:-vr .~~~~~~. '2W~~~~~0ft ,' ' t 003 t t a; , X , } S7g iEfw? 07 @ 04 -~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~' 'i". ' .. < 0"0 ;<0". '7w:st, .j.::-;.70; 74; 2s- t ,- ll ~~~~- ..Zsy i .2\X'# t :"\ i :~~~~~~~2 'N%2 s tn .$ &..N...'.$:,,A i;' . "2 ' 2 -~~~ ~ ~~ ~ ~~ iS,.t a 'sj a SS 4 S W ional Report itral Asia, the Middle East and North Africa 11-( Regional Members: ments are uLiderway in Tunisia, where the gov- IFC invests in the Kumtor Gold li2ltnnistail, Algeria. Arab Republic of Egypt, erinenit concluded negotiationis with the Company to provide the largest source of export eornings for the lŽitnic Republic of Iral, Iraq, Jordfan. Europeani Unioni to form a free trade area that will Kyrgyz Republic. i,lakhst1n, Ku1walit, Kyrgyz Republic, Leb(mnon, have a major impact on the couLitry's econoln,. i i/la, Moriocco, Omann, Pakist(ani, Saudiii Arabia, In Ilakistain, the government continued to i i tnz Arab Reputblic, Tajikistan, Tunisia, UllitCd puIsue strict moletary andi iscal policies that Ieiab Emirfates, Uzbekistan, (11d Republic of Yet,en. have improved the climate for foreign invest- menit and incr-eased private capital inflows to an I he business climate and economilic conditionis in estimated t .5 billion-a 130( percent increase eentral Asia, the Middle East and North Afr-ica over 1994. Pakistan's impressive record in open- improved in 1994. Real GDP growth averaged 4 ing up infrastiuctule to the private sector con- pccent, except in the transitional economilies of tinned, encompassing areas suchi as power, citral Asia. Finanicial discipline remilainied a pri- telecommilunicationis and port facilities. or'ity for governments in the region. Budgetary Central Asian governmienits contilnued tdclicits and intlation rates in most countries were the transition to market econiomies by adherinig 'AIycessfully reduced as a result of effective to strict monetary and stabilization targets that nimacroeconomnic managemeit. have reduced inflation and helped stabilize their In the Near East, improving economic new national cuirencies. Despite continued con- coniditionis resulting from stabilization, structural traction in outlput in 1994, govermiielits made diiUstIllelnt programs and prospects of increased significanit progress in liberalizing and privatiz- political stability are changinig the region's land- ing their economiiies. As a result of major stabi- cllpe. The investment climate is especially lization measures in 1994, the economilies of butlyalnt in Lebano n as reconlstruction accelerates. Kazakhstan and the Kvrgyz Republic are poised In North Africa, reforms continued in for a turinarouLid in the near future. Uzbekistan ihl. Maghreb countries. Morocco stepped up entered its first IMF program and an adjust- privatization and opened up its infrastructuL-c menit operationi with the World Banik in the first seCtor to private iivestimenit. Similar develop- quarter of caleidar year 1995. (-ENIRAL ASIA, THE MIDDLE EAST AND NORTH AFR CA 47 Lonig-Ter m Credlit to Leasitig Modarabas in Pakistan natural resources and manufacturing; and A tItotl-tails iS eI Lolrpolitt i'tll citilf) 5i illO to it citOtd-culid nil,id 1w it/l tI two- tieret strlic- * provide technical advice on privatizing ol t Iisisili of! it pool Olet/putit rpncii'it'/! l il' prii'lt ilii'stors)0 ~/// // ( .il public enterprises and reforming the legal spcittzc'/ ii'sittcit ttiiige/tcif tltttii:liiMtisuii.itotltutet ~ iiand regulatory framiework. fSpt -oliicL Ivlih Slt' t"IlCt1110 oit 1511 llt c!r 1 rctimis PHthr/ h Inising, ii-kaS j) alUldl otiGl aFCs appr-oach to developinig capital tiCcOtefBII-( ct/ie Viii 1/ic tetlits Oft Is/itIti,i tlIllilil i'titilStw Z)ll tbSSw,11,111 :11(tl/ /imarkets was to invest a significant share of its ISOII; e;l//llD jiNg Ill S e. ( St....t 1/iti/Oii.titie 5ti5 liet ( til llt / ltSttilo /ltt/ resources in creatinig model financial institu- (it1/ SiStelti. /it'iitt ljOI/ Of/ liOt It S nois Pt/cist iS 010 01 igfigtr ill lcasiig, picdielli- tions, diversifying financial services and intro- olt/it t) to so1i/1 el/i/d lIWnditln-siei,d c llterprise's. ducillg modern bankinig practices and maniage- melt. IFC's technical assistance and advisory 11 (/ is prol titilig loiNg trlilu trot/-it facilities to fil t p' ilt 'i1 w Itl' i owed losilig i/tot dart/ls ill services on1 the legal and regulatory framework til eINr rlt't/ t Olitllilnt of tip to $S80 iti/ilieit, iit/itiliiio .540 ii7illioni fot' IF j' 01 it eletil/t. for capital markets complemented this IEc/ e1 l-dit tlcilitr iw ill be ill tilhe /iltl ol ptillrIli, con011'eti/li' ititt tlli liotes ill UN. do1ialtr approach. IFC also pro'ided and mobilized long-term resources for local financial institu- t i/tlletsi-e/illit)' Isttlilie illit'sticit itisi ti/te' t unic tI IF s lpi cct i rions. In this respect, a major breakthrough was tioit is IF(:: fitst to Iipre/icii'tsivc ti-tlit o'pr toiflol r /lo i stet-istlili Illtti/itretbis, tit(d rTpr- - ~ ~~~~~ ' ~~~~IFC's cr-eatioii ofain Islaimlc fiinaiicial iiistru- s1etis (t IiieijOIt 'reakthrtin/ig fo- Ile il IF(: eli/l Pakistetil meint, a redeemable income note that will enable IFC to syndicate significant funds from financial T/IL c/llit hficilitics wtill t'/tlice' t cetipt/cit oa f die' ll dt ft/ct/alitos 0 slCit f/iC ' tiDe/dS e/ institutions in the Gulf Cooperation1 Council Steil/I ti li di 1dilflililt-sie/ citcpiscis's, el l/b/inll tlIll to olttii /i'c/at' celltlnt ttS cf Le/lgt'r countries for the benefit of modaraba leasing ileatu iti's. Tf/i p' toject is t'xptctcd ti ' o / t C tIC t ctpiltll /o/i itif ill Ill plitli ft, secftol; companiies in Pakistan (see left columni). This -tlViNtilcil _lIc -ise ,fIt'llsill instrument opens the wav to deplov Islamic sti'e'itgt/ice / thlIe' i/si'elf'li itig ell i,'cic//o lc/L oif/I 7, i00 liciv'e lj/os i1 Pt aiti i. funds into long-term industrial and financial service projects to supplemenit IFC funding, and flirotelWgft 'iieelt/liFtit etftirts, IF( is st'e/ei/tg tee trip the t't/st peiti-s IifLs/iiiiiefiiiell t will have significant ramifications for project A/i/,ll/.c telistl c'/sc'i'/i''-fsti/tete'/fit 5StJ le . bSf/ /eilfieii-tlltlttlt fIfic ls/ailit finanicing in the region. il'i'ctl/llc'lt tiliStt/ti'i/. /1-r effoits ial cI. itii Isl(t ItIic clpittt/ trill ti/Se '/itit/tlt'/ ti'5t Openinig the in fi-astrLucture sector to pri- isOllC lili ei /eetig- tcril itli 'ta Slit/its ill IF( 110iI Nit ieolillttint'S ill ttl lt'gitiit fr-i ist' vate capital was a pi'iority for IFFC durinig 1995. pl cicfi ttilt i'e ietS itistcttefl of f/l/i S/lil t - ttllil teite ti' ut1 li/cu ill iii tt'i/ icla/ili /fititls lilet Over the past few years, IFC has played a critical eCt// i'Plenipc(/ f/It /ls s1 role in advising the governments of Pakistan, Morocco, Jordan and Oman oni a policy frame- work for attracting private investimienit to infra- structure. A new incentive framework for power generation in Pakistan has already produced Strategy and Opportunities considerable results, benefiting local consumers Major bottlenecks to econonmic growtlh and con- as well as the country as a whole. In Jordan, straints to private sector developmenit in the IFC's advice led to changes in telecomn1nLiica- 0~~~~ region include underdeveloped finanicial mar- tions regulations that helped establish the first kets, inadequate infrastructure, large and ineffi- private joint venture in that sector. In Morocco, cient public sectors and the private sector's lack IFC helped the governmienit to facilitate private of access to term finanice. To alleviate these con- investmiient in infrastructure projects. straints while taking into considerationi the vast Support for the developmenit of natural diversity in economic conditionis throughout the resouices is also an important part of IFC's region, IFC formulated a foa5< *o\" Total Total *~~~ s & c Project Project Description No° t' ~~~~~~~~~~~~~~~~~~~~~Project Project Description o°t tc~~~~~~5'< t'' 10& (Financing CaOstt Pakistan (continued) Pakistani Petroleum Install compression facilities to extend the life of the Sli 2.0 2.0 2.0 Limited; natural gas field Rupafab Limited Build a textile dyeing, printing and finishing facility to 11.0 1.2 12.2 38.4 produce 36 millioni linear meters a vear Unit Trust of Pakistan Establish an open-end unit trust 2). 2.0 14.5 Tunisia Inteinational Maghreb Establish a merchant bank with services suclh as trade 0.3 0.3 3.2 Merchanit Bank (I.M. financinig, portfolio management and uniderwr-itilig Bank) S.A. Tunisia Private Equity Establish an off-shore private equity ftnd to realize long- 6.3 6.3 40.5 Fund termi capital gains fiom equity investments in privatelv held comi.panies and privatizing public enterplrises Uzbekistan Uzbekistan Leasing Write lniig-terim leases in foreign currencyv for plant and 5.0 0.6 5.6 24.0 Companiv Limited equipnmenit tor joint Ventures and local firmis with export potential Regional l Emerginig Middle East Establish the first publicly offered, New York-listed 7.i3 7.5 60.0 FuLid investment fund for the Middle East to invest in a diversified portfolio of listed equity anti equity-type securities of regional issueLrs FramlingtonN Maghreb Provide institutionial investors with access to investment 6.1 6.1 30.0 Fund opportunities in Morocco and Tunisia Inter Arab Rating Establish domestic credit rating agencies in the Middle 1.0 1.0 5.0 Company East anid North Afr ic(a guarontee t risk management facility a. Not included in the totat number of 1995 approvals. Included $ standby loan in the total number of countries. § swap b. Included as two projects in the total number of 1995 approvals`. 54 NTERNATIONAL FINANCE CORPC:PAT DN Central Asia, the Middle East and North Africa 1995 Technical Assistance and Advisory Projects Focus Description Algeria Capital market development IFC reviewed draft regulationis for leasing. Egypt Technical advice IFC completed an advisory assignmienit for Alexandria National Iron and Steel Company on its second expansioni. Jordan Capital market developiment IFC carried out a review of the Amman Finanicial Market and made reconi- mendations on trading, clearinlg and settlement systems and market making. Capital market development IFC carried out a review of draft regulationls for mutual funds. Foreigni direct investmenlt FIAS provided comimienits on1 a draft investmenit law. Kazakhstan Capital market development IFC provided assistance to the governmiiienit in establishinig a stock exchange in Aliatv. Foreign direct investmiient FIAS condiucted a survey of multiniationial companies on the FDI environment in the country, and provided assistance to the government in revising its foreign investment law. Project technical assistance Through its Techniical Assistance Trust Funds Program, IFC supported market and technlical studies on medium-density fiberboard production for domestic and export markets. Project technical assistance With fuiding secured through its Technical Assistance Trust Funds Program, IFC supported a techlnical and finanicial review of and provided advisory services to assist with the privatization of two governmenlt-operated mines producing compllex copper/zinc ores. Kyrgyz Republic Capital market development IFC provided assistance in establishing a legal and regulatory fiamework for non-banik financial institutions and securities market development. Foreign direct investmlienit FIAS conducted a diagnostic review of the foreign direct investmenit environ- ment which addressed economiiic policy, privatization and investment promo- tioin ilnstittitonls. Project technlical assistance Through its Technical Assistance Trust Funds Program, IFC secured fuLnding for a market and economic review and a project identification study for the wool sector. Morocco Capital market developmenit IFC advised the Steering Commllittee for the Morocco Privatization Development Project on capital markets. Foreign direct investmiienit FIAS assisted the government in conducting a stLdy on the attractiveness of selected manufactLrinig sectors to foreign investors. 7-ErNTkAL ASIA THE MAULLE EAST AtSL N' C:TH AFRICA 55 Central Asia, the Middle East and North Africa 1995 Technical Assistance and Advisory Projects Focus Description Morocco (continued) Proiect technical assistance With fLunids provided by its Technical Assistance Trust Funds Program, IFC conducted a market study to provide advice on options for restructuring a ceramllics operation. Proiect techlnical assistance Using fLunids secured by its Technical Assistance Trust Funds Program, IFC supported a fiact-finidinig study to identify and develop viable commercial joint ventures to provide environlmenitally oriented services to industr-ies. Pakistan Capital market development IFC provided assistance to the Ministry of Finance and the Corporate Law Authority on various aspects of capital market development. Capital market development IFC provided advice on developing private venture capital. Capital market development IFC carried out a review of regulations on corporate debt instruments. Project technical assistance Through its Technical Assistance Trust Funds Program, IFC secured ftundinlg for a feasibility assessment of producing newsprint fromii mixed wastepaper imported from Europe for the domestic market. Project technical assistance Through its Techlnical Assistance Trust Funds Program, IFC supported a study to assess the domestic market for dyed, printed and finished fabric as well as prospects for exports to foreign markets. Technical advice Through its Techniical Assistance Trust Funds Program, IFC conducted a detailed market sttidv of the cemenit sector, focusing on factors likely to affect its infrastructure requiremiienits. Tunisia Foreign direct investmenit FIAS assisted the governmllenit of Tunisia in a study on the attractiveness of selected iaInufacturinu sectors to foreigni investors. Uzbekistan Project technical assistance Through its 'Technical Trust Funds Program, IFC funded a market and feasibility assessment for a proposed joint venture through the privatization of a state- ownied cotton spinning mill. West Bank Capital market developmiienlt IFC participated in the World Bank's technical assistance program for the and Gaza developmenit of the finanicial sector and advised on the introduction of leasing as an instrument for developing small and medium-sized enterprises. Foreign direct investment FIAS reviewed the policy and legal framework for foreign direct investmenit anid made suggestions to improve the short- to medium-term outlook of FDI. United Arab Capital market development IFC continiued its cooperation with the Arab Monetary Fund in the development Emirates of an Arab Markets Data Base. 56 INTERNATIONAL FINANCE CORPORATION ional Report ope 4 ~ ~ ' J IF-C Regional Memnbers: iniefficeient inidustr-ial structures and a late start IF-C invests in Russia's manufoc- \Qlapl7ia, Armnetia, Belaru-is, Bulgaria, Croadia, in stabilizationi anid reformis. turing sector to increose AO VO,ga'5 newsprint output and j'prus, Cczch Repubilic, Estoniai, Georgiai, Turkey uniderwent a recessioni in 1994, improve environmental stan- * fun garjy; Latntia, Litluaniatit, fJortuer Yuigoslatv with GNP declininig by 6 per-cenit. Businiesses dards. tj', ublic of Macedlonia, Mloldova, Poland, had to deal with problemis of high iniflation, !,itoigal, Romania, Russian Federation, Slovak- highi interest r-ates anid currenicy devaluationi. !N1 1'ublic, Slavcenia, TurkeyA atidi jk-rainei. Access to initerniationial capital markets becamie very difficult for- Tur-kish firmns. I [I in ivestmienit climiate in Europe varied greatly High inflationi rates have been brouIght J tiriniig the year accor-ding to the pace and scope downi ini almlost all of Central anid Easterni 'il eachi country's transition to a market-baised Eur-ope anid rates are niow declininig further east a!lorno v. Almiost all Cenitral anld East Euiropeani in the formi-er Soviet Ulnion. In additioni, recov- kiuntries anid Armienia hiave now reversed the cry in Western Euirope is boosting exports anid dIejine in GNP that followed their shift to mnar- thuis GNP gr-owthi in the enitire regioni, anid trade kci-oriented reformis. In t994, Armieniia, initegrationi withi the West shiould stimiulate Bulgari-a, Croatia, the Czechi Repuiblic, Estoniai, growth over- the longer termii. This is particularly HiUngary, Latvia, Lithuiania anid the Slovak true for counitries that have alr-eady niegotiated ReCpublic all had positive growth for- the first associationi agreemienits with the Euiropean IIinie in recent years. Sloveniia, Romiania anid Unioni (EUT) and are taking steps towar-d full \lbania saw positive ecoinomic growthi for- a sec- miemibershiip. The Czech Repuiblic, l-lungarv, "iiid successive year anid Polanid for a third. Polanid anid thie Slovak Repuiblic hiave miade sub- I arge outpuit declines conitinlued, however, in stanitial progrecss in alchieving economiic liberal- h le formier Soviet Uniion anti in thie formier- ization. So have Estoniia, Latvia, Lithiuania and YuolvRepublic of Mlacedonia, reflecting Sloveniia as they miove toward EL' associationi. EUROPE 57 Shrare Registry Compfiany in Russiai coulntries, privatization of large and mediumil- Tli, i' lir lopicil t of Ri ssisi, capittil iw 1*rkc Is hi liai,pi'rf /c,l Ir ,lila il ,, o1 mlilg i/hc sized enterprises had begull or was about to 0W irLi'rs/lip r ig/i H o/ s/li *t'lli/t'rs. Tllis ('sc itrs t/ lilt ll' ciilo ll' 1/t 0ic' igi pl rtOlio start in 1995. Most newer prcogramias are based iill''Stlllitllt aid tlf/t ult'I't'/iplicitilt t0ill ct//in'ti it'iili/ i ri't k tr for sifriiticS. Ic nciv primarily on voucher methods. Russia has pri- vatized a major-ity-over 14,000-of its larger Rwsialbil FL'tlt71Ii0l COMr(0IIIISSi1011 `01 .W' r 0t' filt,{ 1cr (pI/tal/ A'lairkct_s tl''' flice sl-s iikc enlterpriises. Maniagers anid emilployees now siare -ff(-'kt) tikc t' lot' ii i ilt'sigll i Picsig 'sn ii'isui inc i p ro ('ssitllilllul 1lllall c.dt iiicl//llct - ~~~~~~~~~~~~~~cointrol of imost privatized eiiterprises, while f1cInt ilal o-sliIrt' iss II c'. Ac(riitho Ic/!; IF(. i ltItit i Oic I i tc'c/l lit i/iI pirt it'r tutu{ I/It'lp'il outsiders have a substanitial own ership share 1(r i;S tliLt' coIIteopt. strlief tille (i- l11 Ilgant'(I'L it ii itli guitl'iL its for Ilit Riis,iu Russsat-y through vouchers -o-llpinit; tilt' Inst Oillit-iR't'iii nit'sllt' iogistrie Coiipiiin' ill t/li' i iralt'\' Economic growth in the region is likely to continue, especially in the countries that are 'fli Rissiil Rogistrv ('inp''pam i'ill lh cicpiiaii-c'tit S1u mu/ion t1S1f1 o1i'lc' f/ jOilltl ' 1n/ 1 most successful in organizinog their markets to Ri ssitJ S/i i rs. tlIc' Jbank otN ou\tv )ijk. lFi- ai i/it' ilc nropt' , BkirwS Jor Rtcco))- favor private investmeit. Several Central European and Baltic counltries have created an itt, s1r)Lpll T/IL~ toI; ot ims i l. Oiiti / llrilt re %gis l o investmenit climate attractive to foreign direct LlSL[t'lsolt (111d s('tdcliicu't st'rviccs', iv'i/I provi, af7ft owgS{cLicia It {111f tti''llitill flpport.L- I lic ivs'in.Sii tercuire,b otat investmlent. Some other countries, by contrast, Riu5siaii s/iriltu rs hichiict NIKoiti/ fill (Iffilitc olf Lnktti/, t/ic- largest oil - ttilpi i-iy must deal with large fiscal and trade deficits or Russia. a P LUne.xini Baink, tlt' ill Russia'N hi;"t's4 rtnomilit-ral hiiiiks. T-mis; Pr/ic'it jilS with problemiis in implementiig reforrms before coltt iel' in response c to t'c lck of on 1t'ot'llol I. it' ichiill4t ,Illd prO ft'sSioiiiil 5hi io rigwstI, their growth will accelerate. f`eiiliti's ill Russia 7ill u/ iS t'xpcvic'i to ili't' a sli BriliiCdlt ilplipt Oll tliL 1t'i'i'lopIlit'llf ot Almost all countries in the former Soviet Rnssia's eaporital rlfitrkt'ts. Unlioni faced difficult economiiic environments in 1994, but most achieved substanltial progress in economic stabilization and the introductioni of miodern business piactices. In Russia, privatiza- Success in attracting foreign direct investiment tion efforts have been successful in industry' and from Western Europe is facilitating the liberal- are nlow uniderway in agriculture. Ukraine is ization process, makinig promising headway in microeconiomic Progress in privatizing state enter-prises stabilization, exchange rate policy and privatiza- varied widely, bothi by country anid by size of tion. N-lost of the smaller couLntries have enterprise. Small-scale privatization has been achievedt some success as well. easiest and has proceeded more rapidly' than large industtrial privatizations. Along with for- Strategy and Priorities merly centralized trade antI distribution SyS- lFC's broad strategy in Europe is to assist with tems, between 85 and 100 percent of small the transitioln to successtul market economilies shops and service establishmenits have been pri- through a broad range of instrumienits. Priorities vatized in most of Central and Eastern Europe. are to: The proportion is nearly' as large in Russia. * assist in privatization and other needed MNoreover, small-scale privatization is gaining reformiis; strong mnonieitl-tun even wihere it previously * help modernize privatized enterprises and lagged, as in Belar-us and Ujkraine. SucCessftul make them internationally competitive, developnieiit of relatively small enterpriises has improving productivity, efficiency, energy become an importanit source of growth in nearly' use and the environimenital impact of existing all the countries in transition, notably in the industrial assets; Czechl Republic, Poland and Russia. * help transforimi the financial sector and build Privatization of larger state enterprises is sound capital market institutions; nearing completion only in the Czech Republic, * assist small antd mediumii-sized firms through which piotneer-ed the voucher privatization institutioni buildinig to create stiitable financial miethod together with the Slovak Republic. interimiediaries, such as investmenit funds, Hungary and Poland ftavored noni-voucher banks and leasing comlpanies; antd maethods, as has Estonia. However, Poland is * show the way for foreign direct inxvestmieiit now finalizinig a mass privatization program and lendinig by interinationial capital markets. based on vouchiers anid investmenit fuLids for Because local entrepreneurs and enter- about 450 large enterprises. In nearly all other prise managers often lack the capital and know- 58 INTERNATIONAL FINANCE CORPCPRATION how needed in the post-reforilm marketplace. shifted its focus to locally owned companies in technical assistance and advisory services hiave which private investor-s iare still relLIctanlt to become critical componienlts of IEF's develop- invest withlout IFC support. In Turkey, IFC's menital contributioni, particularly in Countries in focus is on helping locally owned companiies early stages of transition. IFC therefore helped develop their export competitiveness anid regain to implemenit privatization programs in Russia, access to the interinationial capital markets. Ukraine and Belarus. In Russia, it has plaved a IFC, has also worked with the World major role in the privatizationi of small and Banik on improving the policy environimienit for large-scale enter-prises and curirenitly is provid- private sector developimleit. A joint private sec- ing assistance in privatizing agriculture, whiich tor assessmenit in Hungary was completed and involves the lanid, livestock, buildings anid bLsi- another launiched in Bulgaria. ness assets of collective as well as state farms. lFC welcomed three new memilbers from IFC is nlow focusinig its techniical assistance in Europe during 1995-Armenia, G,eorgia and Russia oii the developmenit of needed capital Moldova-bringinig the region's member coun- market institutiois, tries eligible for IFC investmenits to 2). Azer- In Belarus and Ukriniiie, IFC assisted baijan is expected to join early in fiscal 1996. small-scale privatization progranis in 18 cities and is nlow helpinig to launch an expanded effort Project Financing and Resource Mobilization in Ukraine to privatize industrial enterprises As In 1995 IEC approved 26 proiects in 10 couIn- market-orienited reform programs such as pri- tries in Europe and 2 with a regionial focus, vatization advance, opportunities for IFC invest- compared with 39 projects in 1 1 coUlntr-ies and 7 menits develop, and IFC now has an expaandinig regional projects in 1994. As of June 3(), IFC's list of investmenits in countries whiere govern- committed portfolio included investimienits in menits have followed consistent market-based 14t) companlies in 16 couLn1tries, compared with reforimis for some time. 1 21 companiies in 14 countries a year earlier. IFC devotes substantial arid increasing lProject finaniciing and resoul-ce mobiliza- support to projects in the smaller economiiies of tiOn ranged fromii supporting competitive enter- the region, and is helping to generate and pre- prises in mallufacturing to institutioni building pare investmenit proposals fotr most of them. in capital markets, and from agribusilness invest- IFC gives high priority to creatinig effec- menits to investimienits in developing modern tive, well-regulated capital markets throughlout infrastiucture services. the region thlrough techinical assistance as well IFC's first mallufacturing project with a as investimlenits. Even thoughi the financial sector locally ownied enterprise in a Europeani economiy is changinig dynamically, backward and UlnSUit- in transitioni was an investimienit in arid svndica- able financial institutioiis are still a niajor obsta- tion of finanicinig for the Czech Plzensky cle to successfil, private sector-led developmelit. Prazdroj brewery. In compliance with World In transforiiniig capital markets, IFC is especially coiiceriied with the needs of small Prolect Financing FY93 FY94 enterprises. IFC's first investments in a couLntry o Vmilions of U.S. dollurs. are therefore ofteii in joint-ventuL-e baiiks or leasing companiies, which can provide local Financing approved for IFC's account 403 443 bankiiig anid credit services, IFC has also invest- Loans, guarantees and swvaps 6'7 297 ed in a nifiiber of equity' fuiids to provide seed Equity and quasi-equity 13(6 146 capital to proniisiiig venitures. IFG sponsors the Direct mobilization 233 153 Polish Business Advisory Service (see page 62), Loan syindicationis I . 3 138 which provides techinical assistance to Polish Underwriting - 1 entrepreiieurs. IFC is actively looking for doiior Total financing approved 636 596 support to provide sucIh services in othel- couLn- tries in transitioni, includinio soiiie of the Balkaii Committed portfolio for IFC's account 1,436 1,185 natiois. Loans 1d 15 983 In the Czech Republic and Poland, where Equiitv 321 202 private capital is now fiiirly widelv available for Coniniitted portfolio held for others (loan participations) 443 494 joint ventures with foreign partners, IFC hias Total committed portfolio 1,879 1,679 EUROPE 59 Bank and EU environmenital guidelines, the Framlinigton Volga Fund. The registry company brewerv wvill ensuL-e that wastewater is properly will provide muchI-needed share-registration treated instead of discharged directly into a services to large Russiani enterprises, addressing river. IFC also made its first investments in a crucial impasse in the couLntry's capital market Latvia and Lithuania during 1995. development. The trade enhancement facility- the first letter of credit confirmation facility that IFC has structured-will facilitate international Financing Approved trade. The Framlingtonl Volga Funid will invest FY91-95 in locally ownied, privatized and new private (millions of U.S. dollars) enterprises, whichi will then receive technical 800 assistance paid for by the UK Know-How Funld. Financing for IFC's * * 700 IFC also helped create five equity invest- own account i ^|| 600 ment funds to mobilize foreign private invest- 600 i ment in smaller enterprises. One of these, the -Sondunderwritions ~ _500 First NIS Regional Fund, is IFC's largest fund in and_underwritig 400 the region to date and will invest in all 15 coun- 300 tries of the former Soviet Union. IFC served as a - 200 structurinig and placing agent as well as an in_vestor. Countrv funlds were also launched in Hungary and Slovenia, as were funds to help ________________________________ _ _ °0 Russia improve its technology and develop its 1991 7992 1993 1994 1995 transportation sector. In addition, IFC's institu- tion building work included the first joint-veni- ture leasing companiy in Estonia. IFC approved a wide variety of other The openinig of European infrastructure manFIufacturing anld service investmiien ts durinlg sectors-particLilarlvy telecommllunicationis-to the year. The largest of these-and IFC's first pr ivate firms generated further opportunlities. mallufacturinig project in Russia-was AO IFC participated in privatizing Latvia's national \olga, a pulp and paper company undergoing a telecommunications company and made two major post-privatization restructuring. The large telecommunications investments in transactioni included IFC's first syndication in Hungary. The Central European Telecom- Russia. IFC made equity investments in Poland munications Agency Line was established for in a supermarket chain and in a company usinig lending to smaller telephone companiies in North Amer-ican distributioni methods for bat- Hungary and neighbor-ing couLntries. IFC fosters teries and other auto parts. Debt and equity the liberalization trend in this sector by providing finanicing was provided for a paper mill in fuLnds for )public telephone operations unldergo- 1'oland, an acrylic fiber protect in Turkey and a ing privatization, acting as a neutral third party textile investment in Lithuania. In another note- in those privatizations to expedite transfer of worthy manufacturing project, IFC invested in ownership and/or operating control to the pri- an environmientally responsible cogeneration vate sector, and encouraging competition. and water treatment plant for Turkey's largest conglomerate, the Koc group. Technical Assistance and Advisory Services IFC made its first two agribusiniess JFC provided a range of technlical assistance and investments in Russia. Both involved joint ven- advisory services to companies and governments. tures, one in potato processing and one in fruit These services principally involved helping gov- juice. IFC ftuliding will help these companiies erninents to implemenit pilot privatizations, install moder-n technology to supply processed assisting privatized companiies in identifying food pr 0 > T n ; w~~~~~~~~~~ a iai ;0S00 n;tt -; w ~~~~~~~~~~l~ | dis;Xj ::EstS t?s .; 0 A-'-101 0 > i 0 R: X~~~~~~~~~~~~C a:'; t Q i 0 ;iR~~~~~~~~~~IF; T k a 0 (,. rE d'%Y ;>- A n-AS t f i t S S.~~~~~~~~~~~~~~j/ *4,f 0 00p:'i; Oti 00 t:; --00 tSuii.8eiS-*S a:' Xa;+~~~~~~~~~~ t 0 0 i) , y , . DEi;jEx .tt . s+; iJ;<,Y 9aFl tiu ;SKS iSit:: iiii SSlsi;~~~~~~~~~~~~~~~~~~~ ; ; ?2l ¢9;t j;;2x:';ii4 i< Ca ,i' wi ; i ;z 0 ji4G;BOf 0 Y 0 l ;:V : - .;,: 0 @ i ii7, i ?< ? t0 -i;EiVE-liNSsAiSzS'i*Yi;t ...ij.i 3 i 0kiDgwaii ,1;a 0 ; - Y'th iv3sm ; ; 9 f iii; 5tt>dG s:,,, Fi! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Agnin -; SaCo Coertiva Unid' : : L"yimitadii ional Report in America and the Caribbean 1,7/ f t. -. 3v I] / Fi_af 7 l1C Regional Members: grew to roughly $10 billion in 1994 as the economy IFC brings U.S. institutional Ulttngia and Btarbtuda, Argentinla, The Balaitiaiits, expanded by 7 percent. Economic growth, how- investors into its loan participa- B1t/itlados, Belize, Bolivia, Brazil, Chiile, Co10ot7b7ial, ever, slowed considerably by the first half of support Apascor cemnent pro- (,Stia Ricai, Doininicai, Dominlicain Repuiblic, 1995, as capital inflows fell and interest rates docer in Mexico. Ik i,t,dor, El Salvador, Grenaditia, Gu(a tenmala, rose. In response, both Mexico and Argenitina ,;Vana, Haiti, Honduiras, Jamaica, Mlexico, have tightened fiscal and monetary policies and .\Nit,raglua, Plllanama, Paraguay, Peru, St. Liuciai, taken steps to support their banikilng sectors, JittMidad atnd1 Tobago, Uru,Jgualy, andit V-lenezuela. restore contidence and increase domestic sav- ings. Tighter international credit conditions also I le macroeconomic environm1enit in Latin caused problems in Xrenezuela, wlhich continued Am\ierica and the Caribbean was robust during to stiffer from macroeconomiiic imbalances, a most of 1994. However, the rise in internationial finanicial sector crisis and recession. inerest rates over the year reduced capital Economic growth remainied sound in inflows to the region. muclh of the rest of the region. In Brazil, the In Mexico, this combined with a growing economy grew strongly during the entire fiscal cuLr-ent account deficit to produce a dramiiatic year, with only a modest current accouLnt deficit fllloff in international reserves, triggering a and large foreign exchange reserves. An upsurge major devaluation of the peso and a financial in spending occurred during the initial stages of sector crisis. The Mexican economy, which had a stabilization program that reduced inflationi grown at a 3.4 percent rate in 1994, went into and incr-eased confidenice. Chile and Colombia r ecessioni in early 1995. The private sector faced also enijoyed strong economic growth during an1 increasingly difficult environmiienit over the 1994 and the first half of 1995. Due to histories cour-se of the year. In addition to drops in eco- of conservative macroeconiomic management ihliiic activity and domestic credit availability, and relatively strong export performiiances, both access to internationial capital markets declined. countries experienced little fallout from the In Argentina, the current account deficit Mexican crisis. In Peru, growth was moderate in LATIN AMER CA AND THE CARIBBEAN 71 DemnocratiZation itn Haiti to promote capital inflows to competitive busi- Pntcsidlc'ii Ji - rltroli *'t r-isi'i it scc /1i / I Il( /on bci' cik ' / li cvi c'/tl it I molul icl'ji_c nesses in order to offset reduced in flows from Haiiti ulil 0pcil tilt' clt-lil)', Sc) o s ti) p'r(iil/c( ill 'csillilcit cutii/ t ecll i/iio)llh'at. other sources. IFC's strategy for maximizing its I )'nioleiti-ctitiol. ciill't el-hit h/i alSSFtS lilc iracis I Vri/tcl IV t,I tile il,i'lt' stc cct, iii ill bc a development impact in the region is to: kev 0too Ii tlil) t pl(c t'ss . promote funds mobilization, * strengthen local capital markets, * support medium-sized enterprises, and t)ciiiiig 1995 tiln' goelC'/i/tilt tcskcci il-tI tic aIssist ill ililpelielltiZi)ci tilt' public health and the environrneint. In Brazil, IFC and Globo Cabo S.A. are supporting the Ptlitt i7ti CtilMiai Stttlilill ifPtl7iti111t5 tttillsptl-t 5)'5t0-1 -5 . t'APtSIl ilitiCu / hottii7cks ill construction and expansion of a country-wide its inttirasttlitilte al1 n) ctiasiig ioio- proltillairilY aIlt) fii7t' /ttclc tdc'aivs. Ttis, dt/tspitt' its cable television network that will transmit local a111t7tt7itlgocas lttcile (alilt socToi)gli i/itst lz,17Iloti r ,,kt, otilts ,It tio ditvlot cill i'to ,7 and international programming and offer inter- MatiJol ili,l,titl,7ti,,1 ti-tillsportlltiolli cett'r. active services. In Panama, a new private port in Manzanillo Bay, near the Atlantic entrance to J..tilicct tii pi/li i, t.i' Piliiiit i go c't'tl huh I r' a 20-. l.'t....lllsiolli - the Panama Canal, will facilitate trade and help II tloctil (olliptily, MW tores hitcr it c utll(lics, itll partli/rsi l t"arye~ U. IIat illc lower shipping costs in the region (see left col- t7 17vb7 i-oxpd7 It; itItil ItS ilt'ilitl7-Ultsll .Is ,,, ,ltL1-ss wist/i tlt'tt Iat7tstt L'. .5 lit',-, umn). In Uruguay, IFC is supporting Consorcio ~~Aer-opuertos Internacioinales S.A. in a project to trnis-s/ipitllit port lt'tiart tle At/,7tilit itcost tcitralict. Iit1i5-lS-iplict, tloltl/ing sc5- expand and upgrade the LaguLna del Sauce air- ,I,(11to th/t (tittiiit'-iZ tc calgo lytiti rot, ctIlls ' 7rgotl's /cl,'tll ii 1gc I,Ioilh/- I oss Ils port, near the resort city of PuLnta del Este, wvith lillfintotl p-t I-11ous ti7iii silailr/oii't'dter ''sstls tii it catll iit ti/ti te I1lxot o)f golr,l4itll/ uLnder a 20-year concession. This project is both portrs. Mfczil//illo ti'iirllt!idit ,7 ctrtgo I,,,l, /b'tllccl t/,e- I7alJo tst-7l ltst Itt itig lolllcs IFC's first airport venture and Uruguay's first hIl,tl poiimts tiluhtnlit) n Lti,til Ailcricti ill il7, (I/ it' bbl,/II , ,i7ll, is c'xfpcot.'lt I 511 1slstial- concession -based privatization. titiili)' retuit st'h5/Iippinig tmicios tiditi trtlllsportlt co15t5. Technical Assistance and Advisory Services The range of advisory services and technical parency and efficiency of securities trading. The assistance that IFC provided to businesses and project, Sistema Electronico de Transacciones governmllenlts in Latin America and the Carib- C.A., will help open the secLirities market to bean had a significanlt developmental impact. In more domestic and international participants. Haiti, IFC is advising the government on the In response to changing investment evaluation of seven state-owned enterprises for needs, IFC has increased its activities in the possible transfer to the private sector (see page Latin Americani service sector (see page 18). 72). The enterprises cover major sectors of the IFC assisted Compafnia Americana de Super- Haitian economyn. including power, telecommu- mercados S.A. in Argentina to improve its retail- nications, banking, the port and the airport. ilg operations through better inventor-y control In Argentina, IFC advised the govern- and greater cost efficiencyv. In Brazil, IFC helped menit on the creation of a private pension find Lojas Americanas S.A. adopt a state-of-the-art system, and in Colombia and Ecuador, IFC dis- information processing system to automate cussed development of a secondary market for inventory control, as well as open 30 large gen- mortgage banking with both governments. IFC eral merchanidising retail outlets in medium- is also advising the securities and exchange sized cities that previously had none. commissionis in Colombia and Venezuela on IFC also worked with medium-sized rating agency regulations, as well as developing firms in the agribusiness sector. In Argentina, alternatives to the current stock market index IFC helped finance expanisionis in production for the Caracas Stock Exchange. capacity for SanCor Cooperativas Unidas In Peru, the government has been imple- Liinitada, one of the countrv's leading dairy menting a far-reaching privatizationl program as cooperatives, in building four automatic distrib- part of its structural reforms to foster stabiliza- utiOnl centers and upgrading effluent treatment tion and macroeconomiiic growth. To this end, systeims in compliance with WVorld Bank and IFC has been appointed finanicial adviser to pri- local environmental guidelines. IFC also sup- vatize Electrolima, the integrated electric utility ported a four-year investmiient programn to that serves metropolitan Lima. U nder a strategy imiprove the production efticiency of NMastellone devised by IFC, Electrolima was divided into Hermanios S.A., Argentina's leading dairy two distribution companies and one generation processor: company. Stakes of 60 percent in each of the 74 INTERNATIONAL FINANCE CORPORATION distribution companies were successfully priva- tized in August 1994. As Trinidad and Tobago's governmenit continued its commitmenit to market reform, macroeconomic adjustment and privatization, IFC recommended partial divestiture of two state-owned enterprises, the Methanol Comiipaniy Limited and the Electricity Commission. In 1994, the governmenit sold 31 percent of the methanol company through an IFC-negotiated private placemenit for $47 million, the counltry's .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. . ........ ''' T, c- p f i o rate~~~~~~~~~~~~~~~~s ovrthe lon tem T - Iv -- rS Bank-deepeiied~~~~~~!>! it s iivX .woleet in LaiX cou__tries, i -Nxo-P[ -t.. first major divestsent to result in significanet a helps expand regional trade new investment. Forty-nine percent of the new through Monzani/lo Internaional Terminal, a port fcility near the generation company was then sold to a consor- PanAma Canal. tium, raising substantial proceeds for the gov- ernmenIt and direct funds for plant rehabilita- tion, as well as ensuring reasonable electricity rates over the long term. The Foreign Investment Advisory Service (FIAS)-jointly operated by lEG and the Wtorld Bank-deepened its involvemlenat in Latin America through a combinationl of follow-upr advice to former clients and initial work in new countries, including Guyana, Mexico and Peru. EJAS also helped Paraguay's cabinet prepare a public statement on the country's domestic investment climate. LATIN AMER CA AND THE CARIBBEAN 75 Latin America and the Caribbean 1995 Project Approvals Financing (Us$ mi/lions) r- IFC Financing Other Financing _A ~' oa Total c~~~~4' A" IProject Projectl Description \r0 n, ' ' < O ; cing Cost Argentina Acceso Ezeiza Cafluelas, Improve and extend the southern access road for 20.0 61.0 81.0 161.0 S.A. Buenos Aires Acindar Industria Restructure operationis and refurbish the capacity of a 15.0 10.0 20.0 45.0 110.8 Argentina de Aceros, steel mill S.A. Aguas Argentinash Improve and expanid the potable water and sewerage 40.0 167.5 207.5 597.5 network in Buenos Aires by finanicinig a capital expendi- ture program I Banco Roberts S.A. Expand banking operations, particularly in mortgage 20.0 20.0 120.0 lending, throtigh an increased capital base from subordi- nated debt Bridas S.A.P.I.C. Help an oil and gas company finance a capital expendi- 20.0 10.0 40.0 70.0 221.3 ture program and refinance maturinig short-term debt C'ompania Americana Expand and modernize supermarkets to improve inven- 28.0 28.0 149.5 de Supermercados S.A. tory managemilent and realize economies of scale C(ompania Elaboradora Renovate meat processing plants to improve qualitv. 12.0 3.0 6.0 21.0 34.0 de Productos expand the range of products for domestic and export Alimenticios S.A. markets, and upgrade effluelt treatmelint l Empresa Distribuidora Reduce interest rate risk by swapping long-term US$S 3.5§ 3.5 3.5 Norte Sociedad debt from floating to fixed interest rate for the electric Anodnima S.A. distribution company serving norther-n Buenos Aires Kleppe S.A. and El Expand pear and apple plantations anid ioderinize cold 5.0 1.0 6.0 12.8 Caldero S.A. storage and packinig facilities Mastellone Hermanos Improve the productive efficiency and moderinize the 207. 20.0 35.0 75.0 124.7 S.A. collection and distribution svstemils of the leading dairy processor Maxima S.A. AFIP Provide pension fund management and pensioni-related 4.0 4.0 4.0 insuranice services in the countrv's new nationial pension| system I Nahuelsat S.A. ManufaLcture, launch and operate a commercial satellite 30.0 5.0 35.0 240.0 covering Argentina and other Latin American countries to provide communicationis services for TX' broadcastiig and data telecommunicationis networks SanCor Cooperativas Expand the productive capacity, construct foul automated 20.0 20.0 30.0 70.0 197.7 Unidas Limitada distribution centers and upgrade the effluent treatmenit systems of a maJor dairy cooperative Socma Americania S.A. Finanicialli restructure and provide loans for small 25.0 1 5.0 60.0 100.0 347.0 projects in infrastructure, information services and agribusiness 76 I'TIERVIAlI QLAL F I EAr t E )A I F)Y)A N 1 995 Prolect Approvals Financing (US$ inillions) IFC Financing Other Financing f\h *oc' Total Tatal sA \ ~~~~~Project Project ,, 040Financing Cost Description x.° cx G0 C' o Argentina (continued) Terminales Portuarias Redevelop and operate a terminal in the newly priva- 10.0 2.0 12.0 50.3 Argentinas tized port of Buenios Aires to improve cargo handling costs, shipping turnaround and customer service Tower Fund L.P. Expand anid moderniize medium-sized private enterpris- 20.2 20.2 100.2 es by establishing a fund and a companv to manage it Barbados Almond Resorts Inc. Redevelop a privatized 292-room hotel into an all-incLl- 6.0 1.0 7.0 7.0 sive resort Bolivia Banco Industrial, S.A. Expand banking operations anld on-lend to small and- 15.0 2.7 10.0 27.7 27.7 medium-sized enterprises Brazil Cambuhv M.C. Expand orange groves, increase the capacity of a 15.0 15.0 30.0 75.1 Industrial Ltda. processing plant and install a tank farm in Europe C(ompanhia Cervejaria ConstrUct two beverage manufacturing plants and 30.0 5.0 123.0 158.0 508.0 Brahma expand and modernize seven others Globo Cabo S.A. Build and expand cable television networks for the dis- 35.0 10.0 80.0 125.0 290.0 tribution of local and internationial programmiiing and possibly interactive services Latas de Aluminio, S.A. Expand aluminum can manufacturing facilities in 21.0 5.0 26.0 107.7 Pouso Alegre and Santa Cruz Lojas Americanas S.A. Finance a three-year capital investmenit programii for a 28.0 5.0 20.0 53.0 183.7 retailing operator Politeno Industria e Financiallv restructure and modernize a low-density 19.0 19.0 55.1 Comercio S. A. polyethylene plant to diversify products Rhodia-Ster S.A. Support a producer of polyethylene teraphthalic resins, 0.7 0.7 0.7 synthetic fibers and other polyester products by exercis- ing a put option Rhodiaco Industrias Expand a purified terephthalic acid plant to produce 30.0 30.0 60.0 84.2 Quiimicas Ltda. polyester resins Sadia Conc6rdia S.A. Modernize and expand poultrv pork, beef, soya. vegetable 42.0 42.0 42.0 Industria e Comercioi and dry food production and distribution facilities Chile Fundicion Refimet S.A. Expand the capacitv of a copper smelter by 60,001) tons 10.0 10.0 59.0 79.0 91.2 and improve environmental conditions bv treating sulfur dioxide gas to produce sulfuLric acid Reynolds Chile S.A. Construct a 450-millioni ton-per-year aluminum can 8.5 2.5 11.0 44.0 manufacturing plant near Santiago LAT N AMERICA AN1D THE CARIBBEAN 77 Latin America and the Caribbean 1995 Project Approvals Financing (US$ millions) F _ IFC Financing Other Financing 'ft ft;oK r Total pTr.ottal Description p0 ~~~~~~~~~~~ c/Th >~~~~~~' ~ Project Project Deolombiaon c ' G0 %As >i u, Financing Cost Colombia Corporacidn Financiera Support on-lending to small and medium-sized enter- 0.2 0.2 0.3 de Santander S.A.A prises by subscribing to a r ights issue Corporacion Financiera On-lend to small and medium-sized enterprises 40.0 60.0 2.0t 102.0 102.0 del Valle througi a Iine of credit and a r isk management facility Corporaci6n Financiera On-lend to small and medium-sized companies 40.0 40.0 2.Ot 82.0 82.0 Nacioinal y thrOughl a credit liie and provide fixed-rate financing Suramericana S.A. through a risk managemigent facilitv Industria Colombiana Modernize and expand a tire manufacturing company 14.0 5.0 19.0 53.0 de Llantas S.A. Costa Rica Abonos del Pacifico S.A Expand mixed fertilizer production to 80,000 tons per 3.5 0.5 4.0 12.0 year at a bulk-blenidinig facility Dominican Republic Smith-Enroni Provide and operate a 185-megawatt combined cycle 26.3 6.0 100.0 132.3 204.3 Cogeneration Limited power plant selling to the nationial utility to alleviate an Partnership acute energy shortage Guatemala Almacenes Paiz, S.A. Construct a hypermarket to sell food, clothing and 15.( 3.0 18.0 50.0 other products in Guatemiiala City and provincial super- markets for the largest retail chain in Central America Honduras Electricidad de Cortes Build, own and operate a diesel power plant to supply 10.5 2.6 3.5 36.6 53.2 70.9 S.A. de R.L. de C.V. electricity to the government-ownied electric utilitv and ( ELCOSA)b industrial customilers Jamaica Old Harbour Diesel Build, own and operate a barge-moulited diesel power 22.0 2.0 | 24.0 100.0 plant to sell power to the state-owned utilitv ulider a 20-year contract Mexico Apasco, S.A. dle C.V Construct a plant to enable the second largest cement 20.0 80.0 100.0 180.0 company to expand production Baring Venture Fulid Establish a fund to invest in medium-scale private 10.2 10.2 41.0 enterprises and its maniagemilenit company Cifunsa S.A. de C.V. Modernize and expand the manufacturing operations of 18.0 12.0 30.0 45.9 the leading producer of automotive enginie block castings Grupo Posadas, S.A. de Support the leading hotel management company by |0.6§ 0.6 0.6 CAV.;' swapping long-terimi US$ debt from floating to fixed interest rates to reduce interest rate riiskl Mexicana de Cobre, S.A. Expand a copper smelter tromI 184,0(0 to 292,000 tons 25.0 10.0 35.0 115.0 de C.V. annual capacity 78 NIERNATIONAL FINANCE CORPORATION 1 995 Project Approvals Financing (US$ millions) IFC Financing Other Financing ,PA I"' ~~Total Total Description $'\ jo k Project Project Description \10 0~~~~~~~' 99' ,A~ %A' Financing Cost Mexico (contiuecd) Mexplus Puertos, S.A. Establish a liquid bulk terminal at Altamira port and 1 1.2 - de C V expand investimients in other Mexican ports Sigma Alimentos, SA. Expand meat processing capacity and establish a yogurt 12'0 12.0 12.0 de C.V. processing plant Panama Manzaiiillo Interinational Develop and operate a container terminal on Manzanillo 25.0 35.0 60.0 111.0 Terminial Panama, S.A. Bay near the Atlanltic entranice to the Panrama Cainal to lower shippinig costs for European and Asian trade Peru Minera Yanacocha S.A. Fiianice the expanisioni of a gold mine by raisinig fLitds 0.1 0.1 0.1 from a rigiLts issue Sogewiese Leasing, S.A. Expand leasing operations for small and mediumil-sized 10.0 20.0 2. t 32.0 32.0 enterprises through a credit line and provide a risk mani- agemelnt fiacilitv St. Lucia Anse Chastanet Hotel Expand and Upgr.ade a hotel anid develop a new scuba 4.6 1.6 6.2 12.0 diving resort Uruguay Consorcio Aeropuertos Expand and upgrade an airport under a 20-vear conces- 4.0 4.0 10.0 18.0 31.0 Internacionales SA. sion to accommodate large aircraft and improve tlighit reliability and safetv Venezuela Complejo Siderfrgico Expand the productioll of a hot briquette iron plant for 35.0 10.0 61.0 106.0 256.0 de Guavanla, C.A. export Sistema Electrdnico de Help set up a new Clectronic stock exchange to improve 0.6 0.6 5.5 Transacciones C.A. the efficiencv of sectirities trading Regional Latin America Seek mediulim-terimi capital appreciation primarily 20. 0 20.0 145.0 Enterprise Fund, LP. through1 minior-itv ori ccasionially controlling equitv par- ticipatioti in privately held medium-sized companies NatWest/lF( Latin Establish the First passively maniaged equity fund to 10.0 10.0 100.0 American Index Fund replicate the stock market indexes in Latin Amer ican markets * guarantee t risk management facility $ standby loan a. Not included in the tota/ number of 1995 approvals § swap b. Included as two projects in the total number of 1995 approvals LAI N AMER CA AND THE CARIBBEAN 79 Latin America and the Caribbean 1995 Technical Assistance and Advisory Projects Focus Description Argentina Capital market development IFC advised the government on eliminating obstacles caused by its tax depart- ment's definition of what constitutes a finanicial lease. Capital market development IFC provided advice on the new private pension fund system. Project technical assistance With funding secured through its Technical Assistance Trust Funds Program, IFC supported a feasibility study and provided advice on expansion options for an agribusiness company. Technical assistance IFC is assisting Benito Roggio e Hijos S.A., a major operator in urban waste collection, to identify potential international partners. Bolivia Foreign direct investment FIAS assisted in the institutional development of the investment promotion agency. Brazil Technical and financial advice IFC reviewed the feasibility of expanding a purified terephthalic acid plant at Paulinia and assisted Rhodiaco Industrias Quimicas Ltda. in structuring financing for the project. Technical and financial advice IFC reviewed the feasibility of expanding an ethylene oxide and derivative plant at Camarcari and assisted Oxiteno Nordeste S.A. Induistria e Comercio in structuring financing for the project. Technical assistance IFC assessed the technical and economic viability of an expansion program developed by INGA, an integrated zinc producer. Technical and financial IFC reviewed the feasibility of establishing a new polymerization unit at Cabo, assistance and assisted Rhodia-Ster S.A. in structurinig financing for the project. Colombia Capital market development IFC is advising the government on the development of a secondary market for mortgage banking and provided advice to the securities and exchange comn- mission on ratilg agency regulations. Costa Rica Technical and financial advice IFC reviewed the feasibility of constructing and operating a fertilizer bulk- blending plant at Orotina and assisted Abonos del Pacifico, S.A., in structuring financing for the project. Project technical assistance IFC funded a study through its Technical Assistance and Trust Funds Program on the industrial extraction of banana starch and on setting up a pilot plant to produce processed banana starch for evaluation by the food industry. Ecuador Capital market development IFC is discussing the government's technical assistance needs in developing a secondary market for mortgage-backed securities. Guyana Foreign direct investment FIAS reviewed policies impeding foreign direct investment and helped the national investment authority to develop its institutional capacity. 80 INTERNATI1NAL FINANCE CORP(ORAT ON 1 995 Technical Assistance and Advisory Prolects Focus Description Haiti Privatization IFC is assisting the governmilenit in the privatization of seven state-owined enterprises, includinig the power and telecommunications companies, two commercial banks, a cemenit manufacturer and a flour and edible oil mill, and is studyinig concessionis for the port and airport. Mexico Corporate finance IFC is advising Mexicana de Cobre on the development of an investment plan for the Cananiea copper minie. Paraguay Foreigil direct investmiienit FIAS helped the cabinet to prepare an investmenit policy statement. Peru Foreign direct investmelit FIAS helped in the development of institutional capacities for promoting foreign investmiienlt. Privatization IF' is advising the governmeit in the privatization of Electrolima, the electricity utilitY' serxVilg metiopolitani Lima, whichi, until lanuary 1, 1994, included generation, transimiission anid distributioni companies. The distribution companies (Edelnor and Luz del SUti) were privatized in August 1994 and IFC is niow assisting the privatization of the generationi company; Edegel. Privatization IFC assisted the govel-riment with a fairness opinlioIn onl the offering price for a popular scheme for the sale of part of its minority shareholding in the pri- vatized Edelnor, an1 electric comiipiainy. Trinidad and Capital market development IFC is discussinig with the government a review of securities legislation, Tobago strengthieninig the local stockmarket, a review of the tax regime's impact on the securities market, and selling shares of privatized companiies on the stock exchainge. Finanicial advisory FIAS reviewed the corporate taxation system. Privatization IFC advised the governmienlt on the privatization of the generation assets of the Trinidad and Tobago Electricity Commission. Privatization IFC is advising the governimlenit oni the expansioni of the Trinidad and Tobago Methanol Companly and on the divestment of the governmenit's shareholding in the compalny. Venezuela Capital market developmcint IFC assisted with the establishmenit of an electronic stock exchange and a cen- tral depository agent. IFC advised the Caracas Stock Exchange on developing alternatives to its stock market index. Advice was also provided to the SecuLities and Exchalinge Coimmissioni on rating regulations. LATINl AKEERICA 41 IL) rTH LAf! BPEIr. 81 4~~~~~~~~~~% .1> 4~~~~~V 4 'A % ( c 4 '\ 0~sw 44 * .. . - 4~~~~~~~~~~~~~~~~~~~~~aria aprM and the Environment A4 N,~~~,ef . ,~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~r Ii ing 1995 IFC continued to thoroughly inte- creativity and resources. IFC's activities in ecoaourism -I Ce environmenital considerations into its As a finanacier taking commercial busi- help promote biodiversaty in I rstment strategy. The long-term profitability ness risks in long-ternm investments, IFC Tanzania. -1 In investment is closely linked to its environ- addresses these environmenital challenges and .s j tal quality, which in turn entails properly opportIllities project by project, concenitrating i. iciaging raw materials, minimizing waste and on three primary areas: . I1ution, avoiding contaminationi, increasing * environmenital risk maniagemenit, ,%(,Irker productivity throngh health and safety * enviro-nmenital business developmenit, and mc.esures, and maintaining good relations with * global challenges. m)al communities. Projects in which IFC invests mI\wt meet high environmenital standards. By Environmental Risk Management ,li ring commercial risks with project sponsors, Project Review. To maintain and improve the I ( demonstrates that such projects can be effi- unlderlying asset value of its portfolio, IFC WMit, competitive and profitable. screens all proposed investments to identify and Global environmental problems includ- manage environmienital risks along with other insv climate change, loss of biodiversity and credit risks. IFC thoroughly assesses all pro- s /one depletion continue to pose serious dilem- posed technologies, encouraging potential iii,i' for public and private sectors in both the investors to use cleaner, mor-e efficient technolo- de\ elopinig and developed worlds. At the same gies and to adapt techniologies appropriately for irne, local environmental challenges-such as conditions in developing countries. Prior to lie need for clean water supplies, wastewater management approval, projects are assessed for trea;itment and waste managemiienit-also provide consistenlcy with World Bank environmiiiental increasing business opportunities for the private policies and guidelines. After Board approval, alue Liabilities IBRD and market borrowings $7,993 $8,555 $6,531 $6,776 Receivable from currency and interest rate swaps (4,677) (5,533) (3,341) (3,856) Payable for currency and interest rate swaps 4,219 4,771 3,202 3,454 Total Borrowings, Net of Swaps 7,535 7,793 6,392 6,374 Intermediary currency and commodity- indexed swaps payable 420 449 371 397 Asset/Liability managemenlt currency anid interest rate swaps payables 227 261 195 198 Put warrants issued - - - 16 Contat!a Caontract! Nationial Vilue Faiir Valise Nationlal Vau114e Falir Value Other Financial Instruments Loan commitments $1,671 $1,714 S1,382 $1,457 Borrowing commitments 146 149 296 275 Intermediary interest rate swaps, client 167 (3) 103 (1) Intermediary interest rate swaps, counterpartv 167 3 103 2 Commodity-indexed contracts, client 264 (11) 234 (1) Commodity-indexed contracts, counterparty 264 11 234 1 Interest rate cap 7 - Guarantees on swaps 159 4 - Note M - Other Mailers Staff Retirement Plan - IBRD has a defined benefit retirement plan covering substantially all of the staff of IFC, IBRD, and the Multilateral Investment Guarantee Agencv (MIGA). Under the plan, benefits are based on years of service and average compensation, with the staff contributing a fixed percentage of pensioniable remuneration and IFC, IBRD and MIGA contributing the remainder of the actuarially determined cost of funding future Plan benefits. The total contribution is based upon the aggregate funding method. All contributions to the Plan and all other assets and income held for purposes of the Plan are held separately from the other assets and income of IFC, IBRD, and MIGA and can be used only for the benefit of the participants in the Plan and their beneficiaries, until all liabilities to them have been paid or provided for. Expenses allocated to IFC for the year ended June 30, 1995, were $19.2 million ($19.3 million - 1994). Other Post Employment Benefits - IBRD also provides certain life insuranice and medical benefits to substan- tially all retired staff of IFC, IBRD, and MIGA and their spouses through contributionis to a Retired Staff Benefits Plan (RSBP). IFC funds, on an actuarially determined basis, the expected cost of providing such benefits for fuiture retirees. All contributions to the RSBP and all other assets and income held for purposes of the RSBP are held separately from the other assets and income of IFC, IBRD and MIGA, and can be used only for the benefit of the participants in the RSBP and their beneficiaries, until all liabilities to them have been paid or provided for. Expenses for the RSBP allocated to IFC for the year ended June 30, 1995, were $3.8 million ($3.6 million - 1994). Separately, IFC accrues the costs of certain termination benefits provided to former or inactive employees and funds them on a current basis. 11 8 INTERNAT ONAL F NANCE CORPORATION Notes to Financial Statements Service and Support Payments - IFC obtainis some administrative and overhead services fromii IBRD in those areas where common services can be efficiently provided by IBRD. This includes shared costs of the Boards of Governors and Directors, and other services such as commullications, internal auditing, administrative support, office occupanicy, supplies and insuranice. Payments for these services are made by IFC to IBRD based on nego- tiated fees, chargebacks and allocated charges where chargeback is not feasible. Expenses allocated to IFC for the year ended JuLne 30, 1995, were $21.3 millioni ($21.1 IIIillioII - 1994). Contingencies - In March 1993, IFC was named as defendanit in a lawsuit filed in the U.S. District Court for the Southern District of Texas. In August 1993, the complaint was amended by the plaintiffs to increase the amount of damages sought to approximately $1.3 billion. On June 2, 1994, the U.S. District Court granted suLmmary judgmeint in IFC's favor on all counts and dismissed the plaintiffs' action with prejudice. On July 12, 1994, the plaintiffs appealed the judgment to the U.S. Court of Appeals for the Fifth Circuit. All parties have submitted briefs to the CoLirt, and a rulinig is expected shortly. After consultationi with counsel, and based on their advice, IFC's management believes that an adverse decision against IFC is not probable and that, even if an adverse deci- sion were rendered, any resulting loss to IFC would be vastly smaller than the damages being sought and, there- fore, would not have a material effect on IFC's balance sheet or statemenit of income. Trust Funds - IFC uses the services of IBRD to adminiister funids on behalf of donors whiclh are restricted for specific uses which include technical assistance, feasibility studies and project preparation, global and regional programs and research and training programs. These funds are placed in trust and are niot included in IFC's assets. The responsibilities of IFC are to arranige for services generally not otherwise provided by it including full project implemnentation and procurement of goods and services. During the year ended June 30, 1995, IFC received $2.6 mijillioi ($2.1 millioi - 1994) as fees for trust fund services. Duling the year ended Junle 30, 1995 IFC recognized $3.2 miillion ($1.7 miillion - 1994) as income for Trust Fund services. The distribution of trust fLunid assets by executinig agent is as follows: hone 30, 1995 Jlotte 30, 1994 Total N'iumb'r of Total Niumber of Fid11ctave Assets Active Funds Fulueiore *Assets Active Fu,nd/s Executed by IFC $ 35 290 $ 31 185 Executed by the recipient 6 2 5 2 Total $ 41 292 $ 36 187 Note N - Subsequent Event On July 6, 1995, IFC securitized antd sold variable rate U.S. dollar loan participations to a trust at par plus accrued but uLnpaid interest and without recourse, for proceeds of $400 nmillionI plus accrued but unpaid interest, and net of offering expenses. Concurrently, IFC provided a $20 million liquidity facility to the Trust and acquired $20 million of its Class C certificates wvhich are subordinate to the Trust's Class A and B certificates aggregating $380 million. The Class C certificates, against which IFC has provided reserves for losses of $20 mil- lion, will be included as equity investments and the liquidity facility will be ilcluded in other assets. At JlIy 6, 1995, $265 million of the securitized loan participations were secured by security interests in certaini persoinal and real property. I TERNAT 04AL FINANCE C-RPOF.AT ON 1 19 il's~~~1~4 WMt N~~~~~~~~~~~~Ni i 003,14t C.'tt.'S~#4 !~~~~~~~~~~vc International Finance Corporation Report of Independent Accountants Price Waterhouse The Hague New York (International Firm) Beijing Tokyo Hong Kong Washington London Price Waterhouse 0 July 26, 1995 President and Board of Governors International Finanice Corporation In our opinioni, the financial statemenits appearing on pages 102 through 119 of this report present fairly, in all material respects, in terms of United States dollars, the financial position of the International Finance Corporation as of June 30, 1995 and 1994, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles in the United States and with Internlational Accounting Standards. These financial statements are the responsibility of managemenit of the International Finanice Corporation; otir responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards, including International Standards on Auditing, which require that we plan and perform the audit to obtain rea- sonable assuranice about whether- the financial statemenits are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statemenits, assess- ing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. WVe believe that our audits provide a reasonable basis for the opinion expressed above. As described in Note A to the financial statements, the International Finance Corporation changed its method of accounting for the offsetting of amounts related to certain contracts duling the year ended June 30, 1995. INTERNATIONAL FINANCE CORPORATION 1 21 International Finance Corporation Investment Portfolio Summary June 30, 1995 June 30, 1994 (millions of U.S. dollars) (millions of U.S. dollars) Equity Total loans Equity Total loans Loans (at cost) and equity Loans (at cost) and equity IFC portfolio Total $ 7,451.2 $2,010.1 $ 9,461.3 $ 6,398.4 $1,495.0 S 7,893.4 Undisbursed balances 1,671.3 528.4 2,199.7 1,381.8 331.5 1,713.3 Disbursed balances 5,779.9 1,481.7 7,261.6 5,016.6 1,163.5 6,180.1 Loans and equity held by IFC for participants Total $ 4,904.4 $ 0.3 $ 4,904.7 $ 3,618.9 $ 0.3 $ 3,619.2 Undisbursed balances 1,340.2 - 1,340.2 1,013.2 - 1,013.2 Disbursed balances 3,564.2 0.3 3,564.5 2,605.7 0.3 2,606.0 Total IFC portfolio and loans and equity held for participants Total $12,355.6 $2,010.4 $14,366.0 $10,017.3 $1,495.3 $11,512.6 ULndisbujrsed balances 3,011.5 528.4 3,539.9 2,395.0 331.5 2,726.5 Disbursed balances 9,344.1 1,482.0 10,826.1 7,622.3 1,163.8 8,786.1 1 22 .NTEPNAT ONAL FINANCE CORPORATION International Finance Corporation Investment Portfolio As of June 30, 1995 i gial 1 -veslments 'el fo' iFC -arnrm,tmels ircedig c-Wd,sbc, sed bc,ra,lces f".Q' yes'rs 'aI,s of U S cao1rnsl 'saO'15 d LI S 0o08l ! -crrej'CtlC TO[ ToO Eqs/c ToU/l loats a1 at; C 0eQ oo a0 d/- ob Secto were ',,ad e o 1FC s-oCdc- Laer (at co.t; ond eqhay Sub-Saharan Africa Beniin Bank of Africa, Benin (BOAB) Financial Services 1993, '94, '95 0.3 - - 0.3 0.3 Equipbail S.A. Finanicial Services 1995 0.9 - 0.8 0.1 0.9 Societe Beninoise de Peche Food and Agribusiness 1992 0.3 - 0.1 0.1 0.2 Societe Fruitex Industrie Food and Agribusiness 1993 0.4 - 0.5 - 0.5 1.4 0.5 1.9 Botswana Botswana Development Corporation Limited Financial Services 1979, '85 0.6 - - 0.2 0.2 Northern Textile Mills (Botswvan1a) Textiles 1991 0.5 - 0.3 - 0.3 (PTY) Limited ULC (Proprietary) Limited Financial Services 1990, '93 0.8 - - 0.8 0.8 0.3 1.0 1.4 Cameroon Alucam - Compagnie Camerounaise de l'Aluminum Pechinev-Ugine Mining and Extraction 1979 7.9 - - 0.9 0.9 of Metals and Other Ores Cotonniere Industrielle du Cameroun (CICAM) Textiles 1986, '93 6.5 - 7.2 - 7.2 Pecten Canieroon Company> Mining and Extractioni 1992 24.5 24.5 11.3 - 11.3 of Fuel Minerals Societe de Production1, de Collecte, Food and Agribusiness 1994 1.1 - 1.1 - 1.1 de Transformiiation et de Conditionnement de Legumes Societe des Palmeraies de la Ferme Suisse, S.A. Food and Agribusiness 1985 1.6 - - 0.6 0.6 United Transport Cameroon Infrastructure 1994 1.1 - 1.1 - 1.1 20.7 1.5 22.2 Cape Verde Empreendimentos Turisticos Limitada Hotels and Tourism 1995 1.0 - 1.0 - 1.0 Growela Cabo Vlerde, Limitada Manufacturing 1994 1.0 - 1.0 - 1.0 2.0 - 2.0 Congo Congolaise des Bois Impregnes, S.A. Timber, Pulp and Paper 1987 2.1 2- 2.3 - 2.3 Elf Congo Mining and Extraction 1995 50.0 - 50.0 - 50.0 of Fuel Minerals 52.3 - 52.3 C6te d'lvoire Banque Atlantique-C6te d'lvoire Financial Services 1994 5.3 - 5.6 - 5.6 Block Cl-l l Hydrocarbon Development Mining and Extraction 1993, '95 38.7 - - 38.7 38.7 of Fuel Minerals Compagnie Ivoirienne de Production Infrastructure 1995 19.3 - 18.9 1.0 19.8 d'Electricite INTFRNATIONAL FINANCE CORPORATION 1 23 Investment Portfolio As of June 30, 1995 Original Investrients hetld (or UFC, ca,ren,tmentso includina undisbtrsed balances Fiscoi years (millions of U S. dollors) (millions of U S dollorsi in vrich commitments Total Totatl Eqity Total loans Country. region or other rea,. and obligor Sector mere mode IFC Syndicotions Loans (ot cast) and equiS Cdte d'lvoire fconfinued) Etablissements R. Gonfreville Textiles 1977, '87 9.2 - 7.1 0.9 7.9 Filtisac S.A. Manufacturinig 1994 1.1 - 1.2 - 1.2 Industrial Promotion Services ((Cote d'lvoire) Financial Services 1988 0.8 - - 0.8 0.8 Laborex-Cote d'lvoire Industrial and Consumiler Services 1995 3.1 - 3.1 - 3.1 Multi-Produits (SODIRO) Food and Agribusiness 1994 0.4 - 0.4 - 0.4 Omnium Chimique et Cosmetique Food and Agribusiness 1987, '94 6.9 - 5.4 0.1 5.5 (COSMIX'OIRE) Omniumn de Transformations Alimentaires S.A. Food and Agribusiniess 1990 0.8 - - 0.2 0.2 Plaintivoire Food and Agribusiness 1992 1.1 - 1.2 - 1.2 Pechazur, S.A.R.L. Food and Agribusiness 1990, '93 1.1 - 0.6 - 0.6 Societe des Industries Alimentaires et Laitieres Food and Agribusiness 1988, '90 4.9 - 2.0 0.4 2.4 ".SIALIM " Societe Interagri S.A. Food and Agribusin1ess 1993 1.0 - 1.1 - 1.1 46.4 42.1 88.5 Gabon Compagnie Miniere de L'Ogoou6 Mining and Extraction 1989, '92 36.0 - 14.1 - 14.1 of Metals and Other Ores - 14.1 - 14.1 Gambia, The Kombo Beach Hotel Limited Hotels and Tourismil 1984, '90 2.8 - 2.6 1.9 4.4 Lyefish Company Limited Food and Agribusiniess 1995 0.4 - 0.4 - 0.4 Makumbava Farms Limited Food and Agribusiniess 1991 0.9 - 0.6 0.4 0.9 Ndebaan Medi-Services Company Limited Industrial and 1994 0.2 - 0.2 - 0.2 Consumiier Services Pelican Seafood (Gambia) Limited Food anid Agribusiness 1991 1.1 - 1.1 - 1.1 Radville Cold Stores Limited Food and Agribusiness 1994 0.8 - 0.8 - 0.8 5.5 2.2 7.7 Ghana Afariwaa Farms and Livestock Products Limited Food and Agribusiniess 1994 0.4 - 0.4 - 0.4 Alugan Company Limited Mining and Extraction 1990 0.3 - 0.2 - 0.2 of Metals and Other Ores Appiah Menka Complex Limited Chemicals and 1991 0.9 - 0.6 - 0.6 Petrochemicals Ashanti Goldfields Company Limited Mining and Extraction 1985, '90, 87.5 132.5 60.6 - 60.6 of Metals and Other Ores '92, '93 Billiton Bogosu Gold Limited Mining and Extraction 1988, '90, 21.2 29.0 15.0 1.9 16.9 of Metals and Other Ores '91, '95 CAL Merchant Bank Limited Financial Services 1990, '91, '93 8.9 - 5.6 0.9 6.4 Combined Farmers Limited Food and Agribusiness 1993 0.4 - 0.3 - 0.3 Dupaul WVood Treatment (Ghana) Limited Timber, Pulp and Paper 1995 1.0 - 1.0 - 1.0 Ecobank Ghana Limited Financial Services 1993 6.0 - 5.7 - 5.7 Ghana AIl1uminium Products Limited Mininlg and Extractioni 1992 0.4 - - 0.4 0.4 of Metals and Other Ores 124 lNTERNAT(ONAL FINANCE CORPORATION Investment Portfolio: Sub-Saharan Africa Or,y,,rar -svestrmens reld sr IFC. Comm trments' nc!od,n9 snd,sbuses! bolances FTsco! yers, (rn/Ions of LI S do/lors) (-hotnl ss of U S dciiars) "r hi"ch com,rsrnemnts ,Totol Toiti ESqo't To,o! Icans CoUWnTs. reg,on or other are., nd ootdor Se.-cor were mode IFC Ssnd,catr,ns Loons (at cost, anci equiN Ghana (confinued) Ghana Cement WVorks Limited Cement and 1994 3.0 - 3.0 - 3.0 Construction Materials Ghana Household Utilities Manufacturing Manufacturing 1994 0.6 - 0.5 - 0.5 Company Limited Ghana Leasing Company Limited Financial Services 1993, '94 5.8 - 5.0 0.8 5.8 Ghanaian Australian Goldfields Limited Mining and Extraction 1990, '92 19.9 18.5 11.0 3.0 14.0 of Metals and Other Ores Hotel Investmenlts (Ghana) Linmited Hotels and Tourism 1991, '92 4.2 - 3.3 - 3.3 Packrite Cartons and Packaging Industries Ltd. Timber, Pulp and Paper 1992 0.6 - 0.4 - 0.4 Palm Royale Apartment Hotel Companly Limited Hotels and Tourism 1994 1.0 - 1.0 - 1.0 Polytex Industries Limited Manufacturinig 1993 0.4 - 0.3 - 0.3 Primewood Products Limited Timber, Pulp and Paper 1993 1.2 - 1.2 - 1.2 Securities Discount Company Financial Services 1991 0.2 - 0.2 0.2 Shangri-la Hotel Hotels and Tourism 1995 0.3 - 0.3 - 0.3 Wahome Steel Limited Mining and Extraction 1990, '93 5.2 - 2.9 0.4 3.4 of Metals and Other Ores 118.2 7.6 125.9 Guinea Banque Internlationale pour le Commerce F-inanicial Services 1987 1.0 - - 1.0 1.0 et l'Industrie de la Guin6e Ciments de Guinee Cement and 1994 1.5 - 1.5 - 1.5 Construction Materials Socitd Auritere de Guine S.A. Mining and Extractioll 1988 8.3 - 7.6 - 7.6 of Metals and Other Ores Societe Guineenne d'Hotellerie et Hotels and Tourism 1995 4.4 - 3.8 0.6 4.4 d'lnvestissements 12.9 1.6 14.5 Guinea-Bissau Agribissau, S.A.R.L. Food and Agribusiness 1995 0.8 - 0.8 0.1 0.8 0.8 0.1 0.8 Kenya Allpack Industries Limited Timber, Pulp and Paper 1992, '93 0.4 - - 0.4 0.4 Aura Garments Manufacturing Limited Textiles 1994 0.3 - 0.3 - 0.3 Capital Fish Kenya Limited Food and Agribusiness 1995 0.6 - 0.6 - 0.6 Development Finance Companiy of Kenya Limited Financial Services 1980, '84 6.4 - - 1.3 1.3 Diamond Trust of Kenya Limited Financial Services 1982 0.8 - - 0.8 0.8 East Africa Reinsurance Company Limited Financial Services 1994 1.1 - - 1.1 1.1 Equatorial Beach Properties Limited Hotels and Tourism 1986 3.7 - 5.8 - 5.8 Frigoken Ltd. Food and Agribusiness 1990 0.1 - - 0.1 0.1 Future Hotels Limited Hotels and Tourism 1993 0.5 - 0.5 - 0.5 Industrial Promotion Services (Kenya) Limited Financial Services 1982, '87 1.1 - - 1.1 1.] Integrated WVood Complex Limited Timber, Pulp and Paper 1992 0.4 - ).4 - 0.4 International Hotels (Kenya) Limited Hlotels and Tourismii 1995 6.0 - 6.0 - 6.0 INTERNATIONAL FINANCE CORPORATION 1 25 Investment Portfolio As of June 30, 1 995 Orrino/ onnes,merrti held 1or !tiuC co rinlnnrmer,sa *cl,ar,,dq u,dibrsed boialces F'} ye'r, (il/ons of Li do//S ) S4 Tons of U S dollors) ccr n?];rne n/s Tr eiot Totol Eqity Totao lo - CountrY. region or i,her area, and obtigor Setto! me ma,de IFC Serdiculiot-i Loans (at cost) and eqwtny Kenya (continued) Kihingo Roses Limited Food and Agribusiness 1995 0.5 - 0.5 - 0.5 Leather Industr-ies of Kenya Limited Manufacturing 1984, '92 1.9 - - 0.6 0.6 Malaa Industries Limited Food and Agribusiness 1991 0.7 - 0.5 0.2 0.7 Mosi Limited Food and Agribusiness 1994 0.3 - 0.3 - 0.3 Novaskins Tannery Ltd. Manufacturing 1991 0.1 - - 0.1 0.1 Panafrican Paper Mills (E.A.) Ltd. Timber, Pulp and Paper 1970, '74, '77, 54.0 4.0 21.4 4.5 25.9 '79, '81, '88, '90, '94 Premier Foods Industries Ltd. Food and Agribusiness 1989 0.1 - - 0.1 0.1 Premier Refrigeration and Engineering Ltd. Food and Agribusiness 1989 0.1 - - 0.1 0.1 Rift Valley Textiles Limited (RIVATEX) Textiles 1976 9.6 1.3 2.4 - 2.4 Sawa Flora Limited Food and Agribusiness 1994 0.5 - 0.3 0.2 0.5 Tourism Promotion Services (Kenya) Ltd. Hotels and Tourism 1972 1.6 0.8 - + t Ukulima Tools Ltd. Motor Vehicles and 1988, '92 0.1 - - ().1 0.1 Components Vegpro Kenya Limited Food and Agribusiness 1995 1.0 - 1.0 - 1.0 WN'aterfront Hospitality Limited Hotels and Tourism 1994 1.0 - 1.0 - 1.0 41.1 10.8 51.9 Liberia l.iberian Bank for Development and Investment Financial Services 1966, '77, '84 0.7 - - 0.1 0.1 - 0.1 0.1 Madagascar Aquaculture de la Mahajamba (AQUALMA) Food and Agribusiness 1992, '93 4.4 - 3.8 0.6 4.4 BNI-Credit Lyonnais Madagascar, S.A. Financial Services 1992 2.6 - - 2.6 2.6 Financiere D'Investissement ARO Financial Services 1990, '91 0.5 - - 0.5 0.5 La Cotonniere d'Antsirabe (COTONA) S.A. Textiles 1986, '90 11.1 - 3.2 - 3.2 Les Pecheries de Nossi Be, S.A. Food and Agribusiness 1984, '90 6.3 - 3.5 0.2 3.7 Societe Textile de Mlahajunga S.A. Textiles 1977, '87 15.0 - 2.1 0.3 2.4 12.5 4.2 16.7 Malawi Ethanol Company Limited Chemicals and 1981, '82 2.5 - - 0.2 0.2 Petrochemicals Leasing and Finance Company of Malawi Financial Services 1986, '90 0.2 - - 0.2 0.2 Limited, The Stockbrokers Malawi Limited Financial Services 1995 0.1 - - 0.1 0.1 Viphya Plkwoods and Allied Industries Limited Timber, Pulp and Paper 1987 4.4 - 2.3 - 2.3 2.3 0.5 2.9 Mali Grand Hotel de Bamako Hotels and Tourism 1994 1.0 - 1.0 - 1.0 La Soci&te d'Exploitation des Mines Mininlg and Extraction 1995 39.8 25.0 35.0 4.8 39.8 d'Or de Sadiola S.A. of Metals and Other Ores 126 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Sub-Saharan Africa Qrgnol In,estments held for IfCQ comm-f-senls0 icisd,ng ,nd,sbursed bala-ces F 5scX Yeors (mnillons of U S dollars) yrll',ons of U S dot, lrI i7 v-hich CD rmmiln.tenis Toal Total Total loans Country region or cther area and obllgor Secto, ere noon WC Syndicatrons Loans (at costl o"d equity Mali (continued) Societe Miniere de Syama Mining and Extraction 1994 2'5.5 24.1 1.4 25.5 of Metals and Other Ores 60.1 6.2 66.3 Mauritania Mines d'Or d'Akjoujt, S.A. Mining and Extraction 1991 4.2 - 0.6 0.8 1.4 of Metals and Other Ores 0.6 0.8 1.4 Mauritius Big Game Fishing Company Limited Hotels and Tourism 1992 0.2 0.1 - 0.1 Consolidated Steel Limited Mining and Extraction 1992 0.7 - 0.3 0.2 0.5 of Metals and Other Ores Dinarobin Inns and Motels Limited Hotels and Tourism 1971, '92 6.5 0.1 4.3 - 4.3 General Haulage Limited Infrastructure 1991 0.1 - - + t Mauritius Fund Limited Financial Services 1993 5.0 - - 5.0 5.0 Socota Textile Mills Limited Textiles 1987 6.0 - 1.5 1.0 2.4 Textile Industries Limited Textiles 1990 3.1 - 1.9 - 1.9 8.1 6.2 14.3 Mozambique Companhia Agro-Industrial Food and Agribusiness 1987 2.7 - 1.2 - 1.2 Lonrho-Mozambique Limitada Hoteis Polana Limitada Hotels and Tourism 1993 3.5 - 3.0 - 3.0 4.2 - 4.2 Namibia Pescanova Holdings of Namibia Limited Food and Agribusiness 1995 6.5 - 6.5 - 6.5 6.5 - 6.5 Nigeria Arewa Textiles PLC Textiles 1964, r67, '92 6.6 0.7 5.5 0.6 6.0 Canplas Limited Motor Vehicles and 1993 0.6 - 0.3 0.2 0.5 Components Eterna Industries Limited Chemicals and 1995 0.9 - 0.9 - 0.9 Petrochemicals Farbest Industries Nigeria Limited Food and Agribusiness 1994 0.2 - 0.2 - 0.2 First Securities Discount House Financial Services 1993 0.9 - - 0.9 0.9 Ikeja Hotel PLC Hotels and Tourism 1981,'85,'88 12.3 - - 1.5 1.5 Mobil Producing Nigeria Unlimited Mining and Extraction 1991 75.0 95.0 52.5 - 52.5 of Fuel Minerals Nigerian-American Merchant Bank Limited Financial Services 1991 7.6 - 2.4 - 2.4 Orman Industries Limited Food and Agribusiness 1993 0.1 - 0.1 - 0.1 Stark Industries Limited Timber, Pulp and Paper 1991 0.3 - 0.2 - 0.2 Tourist Company of Nigeria Limited Hotels and Tourism 1994 17.5 - 15.0 2.5 17.5 Vincent Standard Steel Industries Nigeria Limited Mining and Extraction 1992 0.8 - 0.4 - 0.4 of Metals and Other Ores 77.5 5.5 83.0 INTERNATIONAL FINANCE CORPORATION 127 Investment Portfolio As of June 30, 1995 Orignal in-estme,sts held for ItFC, corn,r)njmen5a anClVd'ii L'ndisburned boalnces Fiscal vears $ r)nillians of U.S. dollars) (millions Lf U.S dollars) ,n .hich comsn,lmnens To!ol Total! Egsrrhy Tlo1 loans Country. region or ogher area, and obligor Sector ere made IFC Syndicstions Loons (a' cost) ond equiry Rwanda Societe Rwandaise des Allumettes Timber, Pulp iad Paper 1988 0.5 - 0.3 0.2 0.5 (SORWAL) S.A.R.L. - 0.3 0.2 0.5 Senegal African Seafood, S.A. Food and Agribusiness 1986 4.1 - - 0.2 0.2 Banque de l'Habitat du Sengal, S.A. Financial Services 1980 0.5 - - 0.5 0.5 Industries Chimiques du Senegal, S.A. Fertilizers and 1982, '88 15.1 - 6.3 - 6.3 Agricultural Chemicals Societe des Exportateurs du Senegal, S.A. Food and Agribusiness 1994 0.2 - 0.2 - 0.2 Societ Generale de Credit Automobile, S.A. Financial Services 1994 0.2 - - 0.2 0.2 6.5 0.8 7.3 Seychelles PTD Limited - The Paradise Hotel Hotels and Tourism 1993 3.8 2.5 3.8 - 3.8 3.8 - 3.8 Sierra Leone Sierra Leone Ore and Metal Companiy Mining and Extraction 1994 3.0 - 3.0 - 3.0 of Metals and Other Ores Sierra Rutile l1imited Mininig and Extraction 1992 15.0 - 13.7 - 13.7 of Metals and Other Ores - - 16.7 - 16.7 South Africa African Life Assurance Company Limited Financial Services 1995 11.2 - - 11.2 11.2 South Africa Franchise Equitv Fulld Limited Financial Services 1995 2.7 - - 2.7 2.7 - 13.9 13.9 Swaziland Mbabane Concrete Centre (Pty) Limited Cement and 1992 0.7 - 0.4 - 0.4 Construction Materials Natex Swaziland Limited Textiles 1985, '88, '93 12.6 - 8.3 3.7 12.0 Royal Swaziland Sugar Corporation Limited, The Food and Agribusiness 1978, '86 10.0 - - 0.5 0.5 Spintex Holdings Swaziland Textiles 1990 3.7 - - 3.7 3.7 Swazi Paper Mills Limited Timber, Pulp and Paper 1995 5.0 - 5.0 - 5.0 Swaziland Industrial Development Companiv Financial Services 1987, '93 3.3 - 1.6 1.0 2.7 Limited _ _ _ _ 15.3 9.0 24.3 Tanzania Eurafrican Bank (Tanzania) Limited Finanicial Services 1995 0.7 - - 0.7 0.7 Moshi Leather Industries Limited Manufacturing 1995 0.3 - - 0.3 0.3 Mufindi Tea Company Limited Food and Agribusiness 1991 1.7 - 1.6 - 1.6 Nomad Safaris (Tanzaniia) Limited Hotels and Tourism 1994 0.2 - 0.2 - 0.2 Raffia Bags Tanzania Limited Manufacturing 1995 0.5 - 0.5 - 0.5 Tanganyika Bus Services Companv Limited Industrial and 1994 0.3 - 0.2 - 0.2 Consumer Services 128 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Sub-Saharan Africa Origial investments held for IFC commitments0 Including urdisbursed balances Fscot Years (millions of U S dollors) (millions of U S dollors) In which commitments Total Total Equs,y Toial loans CoLntny region or other area and obligor Sector were made IFC Syndications loans (at cost} and equiy Tanzania (continued) Tanganyika Sisal Spinning Company Limited Food and AgribusillessS 199 .2 - 0.9 - 0.9 Tanzania Breeders and Feedmills Limited Food and Agribusiness 1995 1.0 - 1.0 - 1.0 Tanzania Breweries Limited Food and Agribusiness 1995 17.0 7.4 11.0 6.0 17.0 Tourism Promotion Services (Tanzania) Limited Hotels and Tourism 1994 9.1 - 8.0 1.1 9.1 Tourism Promotion Services (Zanzibar) Limited Hotels and Tourism 1995 1.4 - 1.3 0.2 1.4 24.6 8.2 32.8 Togo Societe Togolaise de Produits Marins - STPM Food and Agribusiness 1992, '95 0.3 - 0.3 0.1 0.4 Togotex International S.A. Textiles 199( 1.7 - - 1.7 1.7 0.3 1.8 2.1 Uganda Clovergem Celtel Limited Infrastructure 1995 5.6 - 5.0 0.6 5.6 Clovergem Fish and Foods Limited Food and Agribusiness 1993 0.9 - 0.8 - 0.8 Development Finance Company Financial Services 1985, '93 1.0 - - 1.0 1.0 of Uganda Limited Jubilee Insurance Company Uganda Limited Financial Services 1993 0.1 - - 0.1 0.1 Nile Roses Ltd. Food and Agribusiness 1993 0.3 - 0.3 - 0.3 Polypack Limited ManuLfacturinig 1995 1.0 - 1.0 - 1.0 Rainbow Academy Limited Industrial and 1995 0.8 - 0.8 - 0.8 Consumer Services Rwenzori Properties Limited Industrial and 1994 1.0 - 0.8 0.2 1.0 C(onsumer Services Skyblue Apart-Hotel Hotels and Tourism 1994 0.5 - 0.5 - 0.5 Sugar Corporation of Uganida Limited Food and Agribusiness 1984 8.0 - 6.0 - 6.0 Uganda Leasing Company Limited Financial Services 1995 0.3 - - 0.3 0.3 Uganda Tea Corporation Limited Food and Agribusiness 1985 2.8 - .8 - 2.8 18.0 2.2 20.2 Zaire Grands Hotels du Zaire, S.Z.A.R.L. Hotels and Tourism 1985 15.0 - 7.8 - 7.8 Societe de Telecommunications Cellulaires Infrastructure 1992 6.0 - 3.6 - 3.6 (TELECEL) Societe Textile de Kisangani, S.Z.A.R.L. Textiles 1985 8.9 - 11.4 0.4 11.8 Utexafrica, S.P.R.L. and Usines Textiles Textiles 1988 13.5 - 15.4 - 15.4 Cotonni6res de Kinshasa (Utexco), S.Z.A.R.L 38.2 0.4 38.6 Zambia Big Five Car Hire Zambia Limited Industrial and Consumer 1994 0.6 - 0.6 - 0.6 Services Kafue Textile of Zambia Limited Textiles 1980, '85 10.5 - 6.5 - 6.5 Kaila Lodge Limited Hotels and Tourism 1995 0.2 - 0.2 - 0.2 Zambia Bata Shoe Companv Limited Manuftacturinig 1972, '73 1.1 1.1 - (.2 0.2 Zambia Hotel Properties Limited Hotels and Tourism 1984, '91 7.5 13.5 6.0 - 6.0 13.2 0.2 13.4 iNTERNATIONAL FINANCE CORPORATION 129 Investment Portfolio As of June 30, 1995 Oi_qinl lnvest,nents heid for IFC co,mmetnfsn i,cliding undiskbrsed balances Fsca years s/bsiios of iJS. d.ollars) (mil/ions of U S dollors) In which comr,ritnrests Total Total Equsit Toloi loans Coun-ty. region or other area, and asligor Sector were node IFC Syndicaoons loans (of cost) and eqsny Zimbabwe Abercrombie and Kent Safaris (Private) Limited Hotels and Tourismi 1995 0.5 - 0.5 - 0.5 Barclays Bank of Zimbabwe Limited Financial Services 1991 10.4 10.0 6.7 - 6.7 Bitumen Construction Services (Pvt) Ltd Industrial and 1995 1.2 - 1.2 - 1.2 Consumer Services Chimnwala Farm (Pvt) Limited Food and Agribusiness 1995 1.5 - 0.5 - .5 Chiparawe (Private) Limited Food and Agribusiness 1994 0.8 - 0.8 - 0.8 Crest Breeders International (Private) Limited Food anid AgribusinIess 1986, '94 6.0 - 3.8 0.7 4.5 First Merchant Bank of Zimbabwe Limited Financial Services 1991, '92 30.6 15.0 23.9 - 23.9 FMB Holdings Limited Financial Services 1991, '92, '95 3.5 - - 3.5 3.5 Hippo Valley Estates Limited Food and Agribusiness 1993 9.5 - 9.5 - 9.5 Interfiesh (Private) Limited Food and Agribusiness 1994 2.4 - 2.4 - 2.4 Mashonaland Holdings Limited Manufacturing 1990 4.7 - 1.8 - 1.8 Mat-tools and Forging (Private) Limited Manufacturing 1990 0.7 - 0.4 0.3 0.7 Meikles Consolidated Holdings (Private) Limited Hotels and Tourism 1992 8.3 - 8.3 - 8.3 Merchant Bank of Central Africa Limited Financial Services 1991 13.0 12.5 8.3 - 8.3 National Blankets Limited Textiles 1991 6.5 -- 3.9 - 3.9 National Merchant Bank of Zimbabwe Ltd. Finanicial Services 1994 5.5 - 4.5 0.5 5.0 Petrozim Line (Private) Limited Infrastructure 1992 16.7 16.0 13.4 - 13.4 Retrofit (Private) Limited Industrial and 1990 0.4 -- - 0.1 0.1 Consumer Services Standard Chartered Merchant Bank Zimbabwe Financial Services 1991 15.4 15.0 10.0 - 10.0 Limited Syfrets Merchant Bank Limited Financial Services 1991 12.9 12.5 8.3 - 8.3 T.A. Trading Corporation Private Limited Hotels and Tourism 1991 2.0 -- 1.4 - 1.4 Tedco Limited* Manufacturing 1994 - - 0.5 - 0.5 Triangle Limited Food and Agribusiness 1993 7.0 -- 7.0 - 7.0 Tropico Zimbabwe (Pvt) Limited Food and Agribusiness 1994 0.3 -- 0.3 - 0.3 udc Limited Finanicial Services 1985, '87, '88 1'2.0 - - 0.4 0.4 Venture Capital Company of Zimbabwe, Ltd. Financial Services 1991 0.8 - - 0.8 0.8 Victoria Falls Safari Lodge Hotel (Private) Ltd. Hotels and Tourism 1994 2.8 - 2. 5 0.4 2.9 Wankie Collierv Company Limited Mining and Extraction 1981, '93 22.0 10.8 10.0 - 10.0 of Fuel Minerals Zimbabwe Spinners and Weavers Limited Textiles 1991 5.0 - 0.8 - 0.8 Zimtile (Private) Limited** Cement and 1993 - -- 0.4 - 0.4 Construction Materials 131.1 6.7 137.8 Regional Africa Emerging Markets Fund, The Financial Services 1994 7.5 -- - 7.5 7.5 African Managemenit Services Company Industrial and 1989 1.4 - - 1.4 1.4 Consumner Services - 8.9 8.9 Total for Sub-Saharan Africa 755.6 143.4 899.0 130 INTERNATIONAL F NANCE CORPORATION Investment Portfolio: Asia Originml Invesiments heid for IFC c.mm,tme,tts3 1 ndtnau undisbursed balances Fiscal years trs i Li S dollars1) ('ians of a S ola') in which - comanaoMents Totol Total Equity Total loans Coentre crglon or a,fter area and 00/wIS Sec-:or wece tra-de IF,C SYnd,cators loans at costJ and equty Asia Bangladesh Bata Shoe Company (Bangladesh) Limited Manufacturing 1985, '86 3.6 1.4 - 0.3 0.3 Dynamic Textile Induistries .imited Textiles 1992 2.5 2.0 2.5 - 2.5 Industrial Development Leasing Company Financial Services 1985 3.2 - 0.5 0.1 0.6 of Bangladesh Limited Industrial Promotion and Development Financial Services 1982 1.1 - - 1.1 1.1 Company of Bangladesh Limited --------- 3.0 1.5 4.4 China China Dynamic Growth Fund L.P. Financial Services 1994 20.0 - - 20.0 20.0 China Walden Management Linmited Finanicial Services 1994 + - - + + China WValden Venture Investments Limited Financial Services 1994 7.5 - - 7.5 7.5 Crown (China) Electronics Co. Ltd Manufacturing 1989 15.0 - 7.2 - 7.2 Dalian Float Glass Company Limiited Mlanufacturing 1995 32.9 30.5 30.5 2.4 32.9 Guangzhou Peugeot Automobile Company Ltd. Motor Vehicles and 1985, '92 19.5 - 4.7 4.5 9.2 Componients Nantong NVanfu Special Aquatic Products Co. Ltd. Food and Agribusiness 1995 11.9 10.7 8.3 3.6 11.9 Newbridge Investmenit Partners, l..P. Financial Services 1995 10.0 - - 10.0 10.0 Shenzhen China Bicycles Company (Holdings) Manufacturing 1988, '92, '94 20.9 - 10.5 3.4 13.9 Limited Shenzhen Tai-Yang PCCP Conmpanv, Limited Cemenlt and 1993 5.0 - 3.8 1.0 4.7 Construction Materials Shenzhen-YK Solar Energy Co., Ltd. (SSE) Manufacturing 1989 1.0 - - 1.0 1.0 Yantai Mitsubishi Cement Company Limited Cement and 1993 30.7 - 28.7 2.0 30.7 Constructioll Materials - - 93.7 55.4 149.0 Fiji Ghim Li Fashion (Fiji) Limited Textiles 1993 1.7 2.5 1.4 - 1.4 Merchant Bank of Fiji Limited Financial Services 1987 0.3 - - 0.3 0.3 1.4 0.3 1.7 India 20th Century Asset Management Corporation Financial Services 1994 0.2 - - 0.2 0.2 Limited 20TH Century Finance Corporatiol) Limllited Financial Services 1993 8.0 8.0 5.4 0.8 6.2 Ahmedabad Electricity Company, Limited, The Infrastructure 1989 20.8 - 20.3 - 20.3 Arvind Mills Limited Textiles 1992, '93 20.9 - - 17.6 17.6 Bannari Ammani Sugars lTtd. Cement and 1987 0.9 - 0.2 - 0.2 Construction Materials Bihar Sponge Iron Limited Mining and Extraction 1985, '91 15.9 - 16.7 0.7 17.3 of Metals and Other Ores BSES Limited Intfastructure 1991 50.0 18.0 50.0 - 50.0 Centurion Bank Limited Financial Services 1995 3.9 - - 3.9 3.9 Centurion Quantum Growvth Scheme Financial Services 1994 2.4 - - 2.4 2.4 INTERNATIONAL FINANCE CORPORATION 131 Investment Portfolio As of June 30, 1995 Orginal 1lsestments held for iFC, corrmit-nents0 inch,ding undishursed balances Fisco ieors (millions of U.S. dollas5) )milion of U.S dollOrs) in vnhich commitn,en,s Totol Total Equity Toal. loons Country. region or other area. and obligor Sector were made IFC Syndicoaions loons ot cost) and equiy India (conlinuedl CESC Limited Infrastructure 1991, '93 55.1 30.0 56.0 - 56.0 Chowgule Steamships Ltd. Infrastructur-e 1995 4.6 - - 4.6 4.6 City Mills (Private) Limited Textiles 1987 0.7 - 0.5 - 0.5 Coromandel Engineering Company, Limited, The Cemenit and 1987 0.6 - 0.1 - 0.1 Construction Materials Creditcapital Asset Management Company Financial Services 1994 0.3 - - 0.3 0.3 Creditcapital Venture Fund (India) Limited Financial Services 1993, '95 1.0 - - 1.0 1.0 Deepak Fertilisers and Petrochemicals Fertilizers and 1980, '82, '89 11.7 - 1.4 - 1.4 Corporation Litnited Agricultural Chemicals DLF Cement Limited Cement and 1994 19.4 17.0 15.9 - 15.9 Constructioni Materials Export-Import Bank of India Financial Services 1995 25.0 - 25.0 - 25.0 Global Trust Bank Financial Services 1994 3.2 - - 3.2 3.2 Great Eastern Shipping Company Limited, The Infrastructure 1987, '93, '94 28.9 11.3 8.2 13.0 21.2 Gujarat Ambuja Cements Ltd. Cement and 1994 25.8 - - 8.2 8.2 Constructioni Materials G(ujarat State Fertilizers Chemicals and 1989, '92 37.4 - 23.9 - 23.9 Petrochemicals Herdillia Oxides and Electronics Limited Chemicals and 1991 0.3 - - 0.3 0.3 Petrochemicals Hero Honda Motors Limited Motor V/ehicles and 1987 7.7 - 0.8 - 0.8 Components Hindustani Motors Limited Motor Vehicles and 1987 15.3 - 13.4 - 13.4 Components Housing Development Finanice Corporation Financial Services 1978, '87, '91, 47.8 60.0 40.0 3.4 43.4 Limited '93 IFGL Refractories Limiiited Mining and Extr-action 1992, '94 1.1 - - 1.1 1.1 of Metals and Other Ores IL&FS Stock broking & Investmenit Company Financial Services 1995 0.3 - - 0.3 0.3 Limited India Equipment Leasinig Limited Finanicial Services 1986, '93, '94, 3.8 - 2.8 0.8 3.6 '95 India Lease Development Limited Financial Services 1986, '91, '95 4.6 - 2.2 0.9 3.0 Indian Rayon Corporation Limited, The Oil Refining 1982, '87 8.2 - 1.1 - 1.1 Indo Rama Synthetics (India) Ltd. Textiles 1992, '94 44.8 - 35.0 9.8 44.8 Indus Venture Capital FuLnd I Finanicial Services 1992 1.0 - - 1.0 1.0 Indus Venture Management Limited Finanicial Services 1992 + - - + + Infornmation Technology Fund Financial Services 1994 0.6 - - 0.6 0.6 Infrastructure Leasing and Financial Services Financial Services 1991, '93, '95 44.9 - 40.0 4.9 44.9 Limited Invel Transmissionis Limited Motor Vehicles and 1988, '95 1.4 - - 1.4 1.4 Components ITW Signode India Limited Mining and Extraction 1982, '86, '87, 4.0 - - 1.0 1.0 of Metals and Other Ores '91, '93 J.M. Share & Stock Brokers Limited Financial Services 1990, '95 2.4 - - 1.2 1.2 132 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Asia Original Il-vestments held for IFC comrMern,n sncluding undisbursed boaonces Fiscal year, (millions of iJ 5. dollors) (mlrmlons of t) S dollars) In vhich corm,ments Tt Total Equitv Ttola loans Country. region a, orher orea, and obligor S-t were mode IFC Syndicohons Loans (at cost) and eqicty India (continued) Mahindra & Mahindra Ltd. Motor Vehicles and 1981, '90, '93 28.8 - 7.5 6.5 14.0 Components Mahindra Ugine Steel Company. Ltd. Mining and Extraction 1964, '75, '79, 14.2 0.1 - 1.7 1.7 of Metals and Other Ores '90 Modi Cement Limited Cement and 1985 13.0 - 20.9 - 20.9 Construction Materials N B Footwear Limited Manufacturing 1987 0.5 - 0.2 - 0.2 Nicco-Uco Finanlcial Services Limited Financial Services 1993 3.1 - 2.6 0.1 2.8 Nippon Denro Ispat Limited (NDIL) Mining and Extraction 1992, '95 75.8 60.0 70.0 5.8 75.8 of Metals and Other Ores NSL Limited Mining and Extraction 1982 1.4 - - 0.1 0.1 of Metals and Other Ores Paharpur Cooling Towers Limited Manufacturing 1987 0.9 - 0.4 - 0.4 Prism Cement Limited Cement and 1995 20.0 15.0 15.0 5.0 20.0 Construction Materials SKF Bearings India Limited Manufacturinig 1992 11.5 - 10.5 - 10.5 SPIC Fine Chemicals Ltd. Manufacturing 1991, '95 1.9 - - 1.9 1.9 SRF Finance Limited Financial Services 1995 20.0 - 15.0 5.0 20.0 Switching Technologies Guenther Limited Manufacturing 1987 1.0 - 0.5 - 0.5 Tan India Limited Chemicals and 1987 0.5 - 0.1 - 0.1 Petrochemicals Tata Electric Companies Infrastructure 1990, '91, '94 130.6 - 125.2 - 125.2 Tata Iron and Steel Companiy Limited, The Mininig and Extraction 1981, '86, '89, 98.4 16.7 20.4 15.4 35.8 of Metals and Other Ores '93, '94 Tata Keltron Ltd. Manuftacturinig 1989, '90, '92 0.6 - - 0.6 0.6 Taurus The Starshare Financial Services 1994 7.2 - - 7.2 7.2 Technology Development and Information Finlancial Services 1991 2.1 - - 2.1 2.1 Company of India Titan Watches Limited Manufacturing 1987, '89, '90, 20.9 - 10.3 1.0 11.3 '93 Triveni Oilfields Services Limited Mining and Extraction 1991, '93 1.1 - - 1.1 1.1 of Fuel Minerals UCAL Fuel Systems Limited Motor Vehicles and 1990 0.6 - - 0.6 0.6 Components Varun Shipping Company Limited Infrastructure 1991 16.7 - 11.3 1.3 12.6 Wires & Fabriks (S.A.) Limited, Jaipur Manufiacturing 1987 0.4 - 0.2 - 0. 669.2 138.0 807.1 Indonesia Prudential Asia Indoniesia Trust Financial Services 1994 6.8 - - 6.8 6.8 PT Citimas Capital Indonesia Finanicial Services 1995 1.3 - - 1.3 1.3 P.T. Agro Muko Food and Agribusiniess 1991 12.7 - 9.6 2.2 11.8 P.T. Argo Pantes Textiles 1991 43.0 53.0 22.5 13.0 35.5 P.T. Asia Wisata Promosindo'r Hotels and Tourism 1994 - - 2.6 - 2.6 NTERNATIONAL FINANCE CORPORATION 133 Investment Portfolio As of June 30, 1995 Ogmina! i,vestmenls held c,r iFC co-n nlments5 secluding und,sbmrsea balances F-sca! neors (millions of U S dollars) (rsillio-s a U.S. dolars) 55 weicI? ccomm i'rie.sts To.tal Total Eguit,; Toaai o-rs Coutry, regon or other area, and orlioo, Senses e emcde IFC Sy,rdfcaohns Loans (al cost) and eqnsrn Indonesia (continued) P.T. Astra International, Incorporated Motor Vehicles and 1990, '91, '94 33.3 - - 22.4 22.4 Components P.T. Asuranisi Jiwa Dharmala Manulife Finiancial Services 1988 0.3 - - 0.3 0.3 P.T. Bakrie Kasei Corporation Chemicals and 1992, '95 72.6 95.0 60.0 12.6 72.6 Petrochemicals P.T. Bakrie Kasei Pet Corporation Chemicals and 1995 14.0 - 12.0 2.0 14.0 Petrochemicals P.T. Bakrie Pipe Industries Manufacturing 1995 29.5 - 29.5 - 29.5 P.T. Bali Holiday Village Hotels and lourism 1988 3.5 2.0 0.9 - 0.9 P.T. BBL Dharmala Finance Financial Services 1993 5.0 - 3.2 - 3.2 P.T. Bunas Finance Indonesia Financial Services 1995 10.0 6.0 10.0 - 10.0 P.T. Indo-Rama Synthetics Textiles 1990, '91, '95 65.7 67.5 50.4 8.7 59.2 P.T. Indonesia Asahi Chemical Industry Textiles 1992 5.8 - 2.0 1.8 3.8 P.T. KDLC Bali BancBali Finance Financial Services 1994 16.1 - 15.0 1.1 16.1 P.T. KIA Serpih Mas Cement and 1995 21.4 55.0 15.0 6.4 21.4 Construction Materials P.T. Lantai Keramik Mas Cement and 1992, '94 8.5 10.0 4.2 3.1 7.3 Construction Materials P.T. Mitracorp PacificNusantara Industrial and 1993, '95 22.7 - 2.6 20.0 22.6 Consumer Services P.T. Nusantara Tropical Fruit Food and Agribusiness 1993 9.0 7.0 9.0 - 9.0 P.T. Pama Indonesia Finanicial Services 1994 0.7 - - 0.7 0.7 P.T. Panin Overseas Finance Financial Services 1995 1.9 - - 1.9 1.9 P.T. PDFCI Bank Financial Services 1974 0.5 - - 0.3 0.3 P.T. Rimba Partikel Indonesia Timber; Pulp and Paper 1992 10.5 10.0 11.3 0.6 11.9 P.T. Saniudera Indonesia Infrastructure 1993 17.0 3.0 11.0 5.0 16.0 P.T. Saripuri Permai Hotel (SPH) Hotels and Tourism 1994 11.6 24.0 8.0 3.6 11.6 P.T. Saseka Gelora Finance Financial Services 1982, '85, '94 1.9 - 1.5 0.4 1.9 P.T. Semen Andalas Indonesia Cement and 1980, '88 33.5 28.5 12.6 9.8 22.3 ConstrUction Materials P.T. Sinar Pure Foods Internationalne Food and Agribusiness 1991 - - 0.9 - 0.9 RT. South Pacific Viscose Textiles 1993 20.0 25.0 17.3 - 17.3 P.T. Swadharma Kerry Satya Hotels and Tourism 1992 35.0 51.0 35.0 - 35.0 P.T. Unitex Textiles 1971 1.6 1.8 - 0.3 0.3 SEAVI Indonesia Aruba A.V.V. Financial Services 1993 1.5 - - 1.5 1.5 346.3 126.0 472.2 Korea, Republic of Anam Industrial Company Limited Manufacturing 1988 15.7 - - 15.7 15.7 Hana Bank Finanlcial Services 1971, '74, '76, 13.9 - - 6.6 6.6 '79, '80, '82, '85, '89, '91, '94 Korea Development Investment Corporation Financial Services 1983, '85, '91 3.9 - - 3.9 3.9 Korea Development Leasing Corporation Financial Services 1977,'79, '87,'90 6.8 10.0 - 1.2 1.2 1 34 NTERNATIONAL FINANCE CORPORATJON Investment Portfolio: Asia 0rigai -nvestmenes held tor FC. o-smer,ioents5 nclodrng sn,d,ttbxsed balances Frocicl ve.ars /reiliors of U S dollars) m-lhons of U S dollJrs) comrr- rents Tota,l Total Egqr' Totol ioa,n Count0 'eglon or other area and obliqgo Sec?or we,e node IfC Syndicotions Loons (at costl ofid equty Korea, Republic of (continued) Korea Long Term Credit Bank Financial Services 1968, '74, '76, 37.2 8.9 - 24.5 24.5 '77, '78, '80,'90, '94 Korea Zinc Company, Ltd. Mining and Extraction 1976, '86, '88 24.6 - 1.6 - 1.6 of Metals and Other Ores L.G. Electronics Manufacturing 1975, '76, '77, 43.7 10.0 - 22.1 22.1 '79, '80, '84, '85, '87, '88, '89, '91, '92, '93 Sam Kwang Chemical Company Ltd. Chemicals and 1985 0.1 - - 0.1 0.1 Petrochemicals Seoshin Electronics Company Ltd. Manufacturing 1985 0.3 - - 0.3 0.3 Seoul Cad Mold and Tool Company Ltd. Manufacturing 1985 0.1 - - 0.1 0.1 1.6 74.6 76.2 Malaysia Malaysian Ventures (Two) Sdn Bhd. Financial Services 1992 1.0 - - 1.0 1.0 Malaysian Ventures Management Financial Services 1992 t - - + + Incorporated Sdn. Berhad II SEAVI Project - Malaysian Ventures Berhad Financial Services 1985 0.8 - - 0.2 0.2 Twenty First Century Oleochemicals Sdn. Bhd. Chemicals and 1990 5.2 3.4 3.7 0.7 4.4 Petrochemicals 3.7 1.9 5.6 Nepal Soaltee Hotel Limited Hotels and Tourism 1975, '93 3.9 - 0.5 0.4 1.0 0.5 0.4 1.0 Papua New Guinea ZZZ PNG Cannery Pty., Limited Food and Agribusiness 1994 13.0 - 12.0 1.0 13.0 12.0 1.0 13.0 Philippines All Asia Capital and Trust Corporation Finanicial Services 1980, '83, '89, 32.3 5.0 25.0 2.8 27.8 '90, '95 Avantex Mill Corporation Textiles 1991 13.2 - 8.4 2.0 10.4 Bacnotan Cement Corporation Cemenit and 1993 23.6 - 15.6 5.6 21.2 Construction Materials Best Chemicals and Plastics, Inc. Chemicals and 1991 8.5 - 4.2 2.0 6.2 Petrochemicals Davao Union Cement Corporation Cement and 1981, '92 9.8 - - 0.8 0.8 Construction Materials General Milling Corporation Food and Agribusiniess 1979, '90 5.7 - - 1.7 1.7 Hambrecht & Quist Philippine *entures - 11 Financial Services 1994 2.5 - - 2.5 2.5 Hambrecht & Quist Venture Capital Fund Financial Services 1989 2.3 - - 2.3 2.3 Hopewell Energy (Philippines) Corporation Infrastructure 1991 11.0 - - 1.0 1.0 INTERNATIONAL FINANCE CORPORATION 135 Investment Portfolio As of June 30, 1 995 Qri4,ncat Ilives,ments held for IFC comrnQisrme,, inclLding undisbursed balances Fiscal years , snillions of U S. dollass) Imillions of U.S. dolars) in whinc co-nmitments Total Total Eauity Total oans Country. region or other area. and obligor Sector were mode IFC SYndications Loans (at casfJ and equwty Philippines (coratinued) Hopewell Power (Philippines), Corporation 1Infrastructure 1993 70.0 11.0 60.0 10.0 70.0 Mactan Shangri-La Hotel & Resort Inc. Hotels and Tourism 1993 12.0 12.0 11.0 - 11.0 Makati Shanghri-La Hotel and Resorts Inc. Hotels and Tourism 1991 28.7 28.7 19.7 - 19.7 Manila Electric Company Infrastructure 1967, '89 34.3 3.0 28.5 - 28.5 Maria Cristina Chemical lndustries, Inc. Mining and Extraction 1974, '79 2.2 - - 0.4 0.4 of Metals and Other Ores Northern Mindanao Power Corporation Inifrastructure 1992, '93 17.0 21.0 12.6 4.5 17.1 Philippine Long Distance Telephone Company Infrastructule 1970. '87, '88, 88.5 40.0 52.5 - 52.5 '90 Pilipinas Shell Petroleum Corporation Oil Refining 1993 46.3 78.6 46.3 - 46.3 Walden AB Ayala Management Co., Inc. Financial Services 1995 0.1 - - 0.1 0.1 Walden AB Avala Ventures Co., Inc. Finanicial Services 1995 3.8 - - 3.8 3.8 283.9 39.4 323.3 Sri Lanka C.K.N. Fund Management (Private) Ltd. Financial Services 1992 0.1 - - 0.1 0.1 Lanka Cellular Services (Private) Ltd. Infrastructure 1994 2.0 - - 2.0 2.0 Pyramid Unit Trust Finanicial Services 1992 0.3 - - 0.3 0.3 Taj Lanka Hotels Limited Hotels and Tourismii 1981 8.4 10.2 - 0.6 0.6 Union Assurance Limited Financial Services 1992, '88 1.0 - - 1.0 1.0 - 4.0 4.0 Thailand Ayudhya Development Leasing Company Financial Services 1992, '93 0.6 - - 0.6 0.6 Limited Bank of Asia Limited, The Financial Services 1992, '93, '95 27.2 - 17.5 7.2 24.7 Blumirungrad Medical Center Company Industrial and 1994 27.2 35.0 25.0 2.2 27.2 Limited Consumer Services Central Plaza Hotel Company Limited Hotels and Tourism 1993 13.9 - - 13.9 13.9 Central Sukhontha Company, Limited Hotels and Tourism 1993 7.0 - 7.0 - 7.0 Chao Khun Agro Products Company Limited Food and Agribusiniess 1994 0.4 - - 0.4 0.4 Collection Industrial Associated (Bangkok) Ltd. Manufacturing 1990 0.5 - - 0.5 0.5 Dhana Siam Finance and Securities Public Financial Services 1994 30.0 - 30.0 - 30.0 Company Limited Finance One Public Company Limited Finanlcial Services 1995 30.0 150.0 30.0 - 30.0 HMC Polymers Company Limited (HMC) Chemicals and 1988 16.5 11.0 5.4 1.5 6.9 Petrochemicals Krung Thai IBJ Leasing Company, Limited Finanlcial Services 1992 0.4 - - 0.4 0.4 Ladprao General Hospital Company Ltd. Industrial and 1990 0.3 - - 0.3 0.3 Consuml1er Services Peroxvthai Limited Chemicals and 1989 10.7 - 8.0 - 8.( Petrochemicals Samui Beach Company, The Hotels and Tourism 1993 8.0 - 8.0 - 8.0 SEAVI Project Finanicial Services 1985, '91 1.5 - - 1.5 1.5 136 INTERNATIONAL FINANCE CORPORAT ON Investment Portfolio: Asia Origial in,vestments held fo IFC, noinr-tnents5 include9 undisburued balances F,scol veors (mi/hons of U S dollars) (mi/hons of U 5 dollars) in which coamitmenrs Totol Totae Equily Total loons County, region or other area and obliger Sector were made IFC Syndications Loans (at cost) and equny Thailand (continued) Seavi Thailand Venture Management Ltd. Financial Services 1991 + - - + + Shin Ho Paper (Thailanid) Company Limited Timber, PUlp and Paper 1992, '95 29.5 34.0 20.6 7.5 28.2 Siam Asahi Technoglass Co., Ltd. Manufacturing 199( 8.4 - - 8.4 8.4 Siam City Cement Co.. Ltd. Cemenit and 1979, '81. '85, 59.4 152.0 30.0 - 30.0 Construction Materials '87, '92 Soon Hua Seng Advance Agro Plantation Timber, Pulp and Paper 1994 10.0 - 10.0 - 10.0 Company Limited Star Petroleum Refining Company, Limited Oil Refining 1994 100.0 350.0 100.0 - 10(.0 Thai Baroda Industries Limited Textiles 1993 0.8 - - 0.8 0.8 Top Easy Company Ltd. Manufacturinig 199( 0.2 - - 0.2 . Tuntex Petrochemicals (Thailand) Compan,v Chemicals and 1994 2'0.0 137.5 20.0 - 20.0 Limited Petrochemicals United Palm Oil Industry Public Companiy Food and Agribusiniess 1995 - - - 1.1 1.1 Limited Vinythai Public Company Limited Chemicals and 1995 45.0 70.0 45.0 - 45.0 Petrochemicals Wing Fat Group Company Ltd.> Manufacturing 1993 - - 2.5 - 2.5 359.0 46.5 405.6 Viet Nam Baria Serece Joint Venture Company Infrastructure 1995 3.0 2.0 3.0 - 3.0 Hanoi Sofitel Metropole Hotel Hotels and Tourism 1994 8.5 17.5 8.5 - 8.5 11.5 - 11.5 Other (Taiwan, China)b Asia Cement Corporation Cement and 1970 4.0 t).2 - + + ConstruCtioll Materials _ + + Regional Asian Infrastructure Fund Finanicial Services 1995 50.0 - - 50.0 50.0 Asian Infrastructure Fund Management Financial Services 1995 .1 - - 0.1 0.1 Company Limited L.D.C. Jardinie Fleming Asia Select Limited Financial Services 1990 11.4 - - 10.5 10.5 SEAVI Proiect - South Asia Finanicial Services 1985 1.0 - - + t South East Asia Venture Investment Company III Financial Services 1994 10.0 - - 10.0 10.0 South East Asia Venture Investment Financial Services 1985 .1 - - 0.1 0.1 Management Ltd. -- - 70.6 70.6 Total for Asia 1,785.6 559.7 2,345.3 INTERNATIONAI FINANCE CORPORATION 1 37 Investment Portfolio As of June 30, 1995 Orig,no! Inaesitrenr, held fo- IFC. comitrnmenesl r:nc!,d;ng sndrsbL5rsed balances Fisca,' ye-o tiillions of U. S dollosars/ (nrfio-s of U.S dollars) In o'h;ch co-rifrrents Total Toto! Eqsir, Totol loons Countr. region or other oreoa ond obligor Sector were mode IFC Soyndicotions Loots lot cost) and eqsihy Central Asia, the Middle East and North Africa Algeria Helios S.P.A. Chenmicals and 1993 10.0 - 10.0 - 10.0 Petrochemicals 10.0 - 10.0 Egypt, Arab Republic of Abu Soma Development Company Hotels and Tourism 1994 1.0 - - 1.0 1.0 Al Bardi Paper Mill Company (S.A.E.) Timber, Pulp and Paper 1991 6.2 - 4.1 - 4.1 Alexandria Carbon Black Company, S.A.E. Oil Refining 1993 8. - 7.0 1.5 8.5 Alexandria National Iron & Steel Company S.A.E. Mining and Extraction 1984, '91, '93, 31.4 - 20.0 11.4 31.4 of Metals and Other Ores '94 Aluminium Sulphate Company of Egypt S.A.E. Chemicals and 1986 0.6 - - 0.6 0.6 Petrochemicals Club Ras Soma Hotel Company Hotels and Tourism 1994 8.5 4.7 6.1 2.4 8.5 Commercial International Bank S.A.E. of Egypt Financial Services 1994 15.6 - - 13.6 15.6 Crocodile Tourist Pro.ject Company SAE Hotels and Tourisnm 1982, '89 3.0 - - 1.4 1.4 Delta Sugar Company S.A.E. Food and Agribusilless 1978, '83 14.5 8.0 - 2.5 2.5 Egyptian Tourism Investment Company, S.A.E. Finanicial Services 1992 2.0 - - 2.0 2.0 Horus Investments Limited Financial Services 1993 + - - t t International Egyptian Investmenits Limited Financial Services 1993 6.0 - - 6.0 6.0 Ismailia Misr Poultry Company, S.A.E. Food and Agribusiness 1979, '83 7.6 - - 1.6 1.6 Meleiha Oil Development and Exploration Mining and Extractioni 1987, '88, '93 4t.7 - - 30.8 30.8 Project of Fuel Minerals Misr Compressor Manufacturing Company, Manufacturing 1992 11.0 - 8.0 3.0 11.0 (Mcmc) S.A.E. Misr Financial Investment Company Financial Services 1985 0.5 - - 0.1 0.1 Pioneer Egypt Edible Oil Company S.A.E. Food and Agribusiness 1992 1.2 - + + Serena Beach Hotel S.A.E. Hotels and Tourismii 1992 8.7 7.5 1.2 8.7 52.8 81.1 133.8 Jordan Al Keena Hygienic Paper Mill Co. Ltd. Timber, Pulp and Paper 1995 8.0 - 8.0 - 8.0 Al Hikma Investmenit Company Ltd. Chemicals and 1987, '91, '93, 9.9 - 5.0 2.7 7.7 Petrochemicals '95 Indo-Jordan Chemicals Company Limited Fertilizers and 1995 30.0 - 30.0 - 30.0 Agricultural Chemliicals 43.0 2.7 45.7 Kazakhstan ABN-AMRO Bank Kazakhstan Finanicial Services 1994 2.0 - - 2.0 2.0 - 2.0 2.0 Kyrgyz Republic Kumtor Gold Company Mining and Extraction 1995 40.0 - 40.0 - 40.0 of Metals and Other Ores 40.0 - 40.0 138 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Central Asia, the Middle East and North Africa Original In-estments held for IFC. com.-tnments0 oclisding undisbursed balances Fiscal yea,s ,mlli,ons of U S doiiors) (nuiltions of U 5 doloars) ,n woolh comm,ns ents Total Totol EqoS's Total loans Counbty; region or other orea, and obtigor Sector wer made IFC Syndications Loans lot cost) cnd equ,ty Lebanon Bank of Beirut and the Arab Countries, S.A.L. Financial Services 1993 6.0 3.0 6.0 - 6.0 Banque Audi, S.A.L. Financial Services 1993 6.0 3.0 6.0 - 6.0 Banque du Liban et d'Outre Mer S.A.L. Financial Services 1993 6.0 3.0 6.0 - 6.0 Banque Libanaise pour le Commerce S.A.L. Financial Services 1994 6.0 3.0 6.0 - 6.0 Banque Libano-Francaise S.A.L. Financial Services 1994 6.0 6.0 6.0 - 6.0 Byblos Bank, S.A.L. Financial Services 1993 6.0 3.0 6.0 - 6.0 Cimenterie Nationale, S.A.L. Cement and 1995 20.0 30.0 20.0 - 20.0 Construction Materials Fransabank S.A.L. Financial Services 1993, '94 12.0 9.0 12.0 - 12.0 Lebanese Leasing Company S.A.L. Financial Services 1995 7.5 7.5 7.5 - 7.5 Societ6 Gen6rale Libano-Europ&enne de Financial Services 1994 6.0 6.0 6.0 - 6.0 Banque S.A.L. Uiniceramic S.A.L. Cemenit and 1993 4.0 2.0 3.6 - 3.6 Construction Materials 85.1 - 85.1 Morocco Banque Commerciale du Maroc, S.A. (BCM) Financial Services 1992 12.0 21.0 10.4 - 10.4 Banque Marocaine du Commerce Exterieur Financial Services 1992 12.0 21.0 10.4 - 0.4S S.A. (BMCE) Banque Nationale pour le Developpement Financial Services 1963, '78, '84, 46.9 40.0 15.7 - 15.7 Economique '86 Ciments du Maroc Cement and 1992, '94 25.2 8.7 26.0 - 26.0 Construction Materials Compagnie Maritime Maroco-Norvegienne Infrastructure 1989 4.3 2.0 0.9 - 0.9 (COMARIT) Cr6dit du Maroc, S.A. (CDM) Financial Services 1992 8.0 14.0 6.9 - 6.9 Credit Immobilier et Hotelier Financial Services 1987, '90 67.5 78.4 58.4 - 58.4 Cerame Afrique Industries Cement and 1991 5.4 - 4.1 - 4.1 Construction Materials Euratlas Capital-D6veloppement Financial Services 1995 4.0 - - 4.0 4.0 Financiere Euratlas Financial Services 1995 0.1 - - 0.1 0.1 Internationale de Financement et de Financial Services 1993 3.9 - - 3.3 3.3 Participation Settat Filature (SETAFIL) Textiles 1988, '93 4.7 - 3.6 1.2 4.8 Societe ENNASR de P&he Food and Agribusiness 1991 2.5 - 1.9 - 1.9 Societe Marocaine d'lnterm6diation Financiere Financial Services 1994 0.5 - - 0.5 0.5 Socict6 Miniere du Bou-Gaffer "SOMIFER" Mining and Extraction 1980 15.3 - - 2.3 2.3 of Metals and Other Ores 138.4 11.5 149.9 Oman Oman ORIX Leasing Company SAOG Financial Services 1993 5.5 - 5.0 0.5 5.5 United Power Corporation Infrastructure 1995 19.0 57.0 15.0 4.0 19.0 20.0 4.5 24.5 INTERNATIONAL FINANCE CORPORATION 139 Investment Portfolio As of June 30, 1995 Origincl in-estmewts held for IFC. corrmitnents including urdisbursed balances Fiscal yeors (nIliofs cl US. dollars) 'reilfions of U.S. doilars) j, nvhich coninlmeets Total Total Equity Total lons Conety region or other area and obligor Sector were made IFC Syridications Loan's (a! cost) and equity Pakistan AES Lalpir Limited Infrastructure 1995 49.6 - 40.0 9.6 49.6 Atlas Lease Limited Financial Services 1994 10.0 2.29 10.0 - 10.0 Bear Stearns lahangir Siddiqui Linited Financial Services 1993 0.8 - - 0.8 0.8 BRR Capital Modaraba Financial Services 1994 10.0 - 10.0 - 10.( BSJS-AIM Asset Managemlenit Company (BAICO) Financial Services 1995 0.3 - - 0.3 0.3 Central Depository Company of Pakistanl Limited Financial Services 1993 0.2 - 0.2 0.2 Crescent Greenwood Ltd. Textiles 1994 19.2 10.0 16.1 3.1 19.2 D.G. Khan Cemenit Company Limited Cemenit and 1995 40.0 40.0 35.0 5.0 40.0 Construction Materials Equity International (Private) Limited Financial Services 1992 0.2 - - 0.2 0.2 Equity International Modaraba, Limited Financial Services 1992 0.8 - - 0.8 0.8 Exon Clhenmical Pakistan Limiiited Fertilizers and 1991,'95 46.1 5.0 35.2 9.3 44.5 Agricultural Chemicals Fauii Cement Ltd. Cemenit and 1994 29.0 20.0 24.0 5.0 29.0 Conistruction Materials First International Investmenit Bank Limiited Financial Services 1990, '92 1.5 - - 1.5 1.5 First Leasing Corporation Limited Financial Services 1994 5.0 - 5.0 - 5.0 General Tyre and Rubber Companiy of Motor Vehicles and 1995 20.4 - 17.7 2.7 20.4 Pakistan Limited, The Componenits Hala Spinning Limited Textiles 1989 3.9 - 5.2 - 5.2 Hoechst Pakistan Limited Chemicals and 1994 - - 1.9 - 1.9 Petrochemicals Internationial Housing Finanlce Limited Finanicial Services 1992, '95 9.1 - 8.2 0.9 9.1 Kohinoor Energy Limited Infrastructure 1995 31.3 36.6 25.0 6.3 31.3 Maple Leaf Cement Factory Limited Cement and 1994, '95 35.2 35.0 30.0 5.2 35.2 Construction Materials Mari Gas Company Limiited Mininig and Extraction 1986, '92 25.5 6.7 17.3 - 17.3 of Fuel Minerals Millat Tractors Limited Motor Vehicles and 1988 4.9 - 2.5 - 2.5 Components Moohib Textile MNills Limited Textiles 1994 2.5 - - 2.5 2.5 Muslinm Commiiercial Bank Limited Financial Services 1993 15.0 10.0 15.0 - 15.0 National Development Leasing Corporation Financial Services 1985, '94 12.9 3.3 12.5 - 1295 Limited Orix Leasing Pakistan Limited Finanicial Services 1994 12.5 3.3 12.5 - 12.5 Packages Lilited Thimber, Pulp and Paper 1965, '81, '82, 44.8 20.1 25.6 3.5 29.0 '87, '92, '94, '95 Pak-Suzulki Motor Company Limited Motor Vehicles and 1990 11.0 - 10.2 - 10.2 Components Pakistan Ciedit Rating Agency Finanicial Services 1994 0.2 - - 0.2 0.2 Pakistan Industrial Leasing Corporation Finanicial Services 1991, '94, '95 20.5 2.2 17.8 1.0 18.8 Limited Pakistan Petroleum Limiited Miningi and Extraction 1983, '85, '95 46.0 89.0 26.2 1.6 27.8 of Fuel Minerals 140 INTERNATIONAL FINANCE CORPORATiON Investment Portfolio: Asia Originle In-estments held for IFC coln-,remrnts0 including undisbursed balances Fiscoa years (minllons of U S oollars, (dillons of U S dollars) In 'lrich - - _ _ co ilmnentsin Total Tctat Equtiy Fatal loans Counnry region or other orea and obhigor Sector were made IFC Syndicotaons loans (l cost) and equlty Pakistan (continued) Pakistan Services Limited Hotels and Tourismii 1993 15.0 - 12.0 3.0 15.0 Premier Containier Terminal Lhimited In frastructure 1995 13.5 '2.0 12.0 1.5 13.5 Prudential Discount and Guarantee House Financial Services 1991 0.4 - - 0.4 0.4 Limited Regent Knitwear Limited Textiles 1994 16.1 4.8 16.6 - 16.6 Rupafil Limited Textiles 1993 17.0 - 19.5 0.3 19.9 Sarah Textiles Textiles 1993 7.5 - 6.0 1.5 7.5 468.9 66.3 535.3 Tunisia Adwya S.A. Chemicals and 1987. '91 2.7 - 0.9 - 0.9 Petrochemicals Banque de Developpement Econonmique Financial Services 1966, '70, '78 2.3 - - 1.0 1.0 de Tunisie Banque Nationale de Developpement Touristique Financial Services 1969 9.1 1.2 - 1.1 1.1 COMETE Engineering Industrial ancd 1987. '93 + - - + + Consumer Services Jdeal Sanitaire Cement and 1993 4.3 - 3.2 1.0 4.3 Construction Materials International Maghreb Merchant Bank Finanicial Services 1995 0.3 - - 0.3 0.3 (I.M. Bank) S.A. Societe Industrielle des Textiles (SITEX) Textiles 1986, '92 13.2 - 4.1 2.2 6.2 Societe des Industries Textiles Reunis, S.A. Textiles 1988 2. I - 1.1 1.1 Societe Miniere de Bougrine (SMB) Mining and Extraction 1992. '94 17.1 - 14.0 3.1 17.1 of Metals and Other Ores Soci6t6 Monastirienlne Internationiale des Textiles Textiles 1991 5.6 - 3.5 2.8 6.3 Societes d'Etudes et de D6veloppement Hotels and Tourismii 1973, '75 3.2 - - 0.6 0.6 de Sousse-Nord 25.7 13.2 38.9 Regional Emerging Middle East Fund Financial Services 1995 7.2 - - 7.2 7.2 Framlington Maghreb Fund Finanicial Services 1995 8.0 - - 8.0 8.0 Framlington Maghreb, S.A. Finanicial Services 1995 + - - + + - 15.2 15.2 Total for Central Asia, the Middle East and North Africa 883.9 196.6 1,080.5 INTERNATIONAL FINANCE CORPORATION 141 Investment Portfolio As of June 30, 1 995 Ct,g,nol Investments beld for IFC. coasnrrsrnientsn u-cluding arrdisb,rsed bala-ces FTaco years 'urilitoss of U.S doatas) (mihlions of U S. dolars/ ir whi,ch comrn,itr,n&,s Total Total Equire Trta loans Country regs ra oeth areo and obaiar Sector w.ere rade IFC Syndications Loans (a cost) and equiry Europe Bosnia-Herzegovina Sour Energoinvest Manufacturing 1985 15.2 - 10.8 - 10.8 Tvornica Kartona I Ambalaze Cazin Timber, Pulp and Paper 1977 10.8 7.4 4.8 - 4.8 15.6 - 15.6 Bulgaria EuroMerchant Balkan Fund SICAV Financial Services 1995 5.0 - - 5.0 5.0 - 5.0 5.0 Cyprus Dome Investments Limited Hotels and Tourism 1983 1.5 - - 0.3 0.3 Leptos Calypso Hotels Limited Hotels and Tourism 1991 8.4 - 8.0 - 8.0 8.0 0.3 8.2 Czech Republic Autokola Nova Hut a.s. Motor Vehicles and 1994 16.5 22.2 19.4 - 19.4 Components Beronit a.s. Cement and 1995 5.0 - 5.0 - 5.0 Construction Materials C.S. Cabot Spol. sr.o. Oil Refining 1993 20.3 - 19.7 - 19.7 Cementarny a Vapenky Mokra A.S. Cement and 1992 17.2 - - 17.6 17.6 Construction Materials Czech and Slovak Private Equity Fund L.P. Financial Services 1995 2.5 - - 2.5 2.5 EZA Sumperk a.s. Cement and 1994 5.8 - 5.8 - 5.8 Coonstruction Materials MaFra a.s. Manufacturing 1994 14.2 - 15.5 - 15.5 Vetropack Moravia Glass A.S. Manufacturing 1994 18.7 - 19.1 - 19.1 Zivnostenska Banka, a.s. Financial Services 1992 6.4 - - 5.4 5.4 84.6 25.5 110.1 Estonia Estonia Industrial Leasing Ltd. Financial Services 1995 0.3 - - 0.3 0.3 Kunda Nordic Cement A.S. Cement and 1994 10.0 - 6.0 4.0 10.0 Construction Materials Oy RUDUS Ab Cement and 1995 1.5 - - 1.5 1.5 Construction Materials 6.0 5.7 11.7 Hungary Agroferm Hungarian-Japanese Fermentation Food and Agribusiness 1987 11.3 - 7.7 2.7 10.4 Industry Ltd. Albadomu Malataterinelo Es Kereskedelmi BT Food and Agribusiness 1994 7.4 - 5.9 2.1 8.0 Budapest Bank Limited' Financial Services 1991 28.8 - 28.4 - 28.4 Csini Form Divataru Kft.*e Textiles 1993 - - 0.3 - 0.3 Dexter Mold Making Company Limited Manufacturing 1990 3.9 - - 1.0 1.0 142 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Europe Original Investments helci for IFC, commarments0 ncludmg undisbmrsed balances Fiscal yecrs (millions of O S dollors) (milihons of a S. dollars) In which commilmenis Total Total Equr>y Total loans Country, reqgon or other area and obligor Sect,r were mode IFC Syndications Loans (at cost) and equity Hungary (continued) Dunastyr Polisztirolgyarto Rt Chemicals and 1989 18.0 14.4 11.9 3.8 15.6 Petrochemicals Euroventures Hungary B.V. Financial Services 1992 2.8 - - 2.8 2.8 First Hungarian Investment Advisory Rt. Financial Services 1990 + - - + + First Hungary Fund Limited, The Financial Services 1990 7.5 - - 3.8 3.8 Hungarian Telecommlnications Investment Infrastructure 1994 28.5 - - 28.5 28.5 Company (InvestTel) Magyar Suzuki Corporation Motor Vehicles and 1991 38.7 - - 6.5 6.5 Components Mirelite Budapest Frozen Food Company, Inc. Food and Agribusiness t994 9.0 - 6.0 3.0 9.0 Papa Regional Telephone Company Rt. Infrastructure 1994 0.5 - - 0.5 0.5 Salgotarjan Glass Wool Limited Manufacturing 1988, '89, '92 5.5 - 1.5 2.0 3.5 Unicbank Rt. Financial Services 1987, '92 13.2 - 7.0 - 7.0 Westel 900 GSM Mobil TavkOzlesi RT Infrastructure 1995 39.0 - 35.0 4.0 39.0 Westel Radiotelefon KFT Infrastructure 1992 15.0 - 10.5 - 10.5 114.2 60.6 174.8 Latvia Tilts Communications A/S Infrastructure 1995 16.4 - 5.4 11.0 16.4 5.4 11.0 16.4 Poland Bona Sp. z o. o. Food and Agribusiness 1994 2.0 - 2.0 - 2.0 Chemagev, Limited Industrial and 1992 4.1 7.6 2.4 1.1 3.5 Consumer Services Coalbed Methane Mining and Extraction 1995 8.7 - - 8.7 8.7 of Fuel Minerals Export Development Bank' Financial Services 1990 20.4 - 13.6 - 13.6 Globi Polish Retailing Company Industrial and 1995 10.0 - - 10.0 10.0 Consumer Services Handlowy-Heller S.A. Financial Services 1994 0.6 - - 0.6 0.6 Huta LAV. Sp. z o.o. Mining and Extraction 1993 45.1 - 40.2 4.9 45.1 of Metals and Other Ores Intercell Spolka z o.o. Timber, Pulp and Paper 1995 18.0 - 11.0 7.0 18.0 International Bank in Poland (IBP) Financial Services 1991 3.2 - - 3.2 3.2 International Paper - Kwidzyn S.A. Timber, Pulp and Paper 1995 24.0 18.8 24.0 - 24.0 ITAL-POL Company Ltd.'* Manufacturing 1990 - - 0.1 - 0.1 Mariusz Malkiewicz*e Food and Agribusiness 1990 - - + - + "M.J.A." Partnership** Timber, Pulp and Paper 1990 - - 0.3 - 0.3 Nesky, Inc. Motor Vehicles and 1995 2.0 - 1.5 0.5 2.0 Components Philips Lighting Poland S.A. Manufacturing 1992 15.0 - 13.8 - 13.8 Pilkington Sandoglass SP. z o.o. Manufacturing 1993 44.7 27.2 39.6 8.3 47.9 Piotr Ostrowski Partnership in Wetlina Hotels and Tourism 1990 + - 0.2 - 0.2 Poland Investment Fund L.P. Financial Services 1995 2.3 - - 2.3 2.3 INTERNATIONAL FINANCE CORPORATION 143 Investment Portfolio As of June 30, 1995 Or,gtsal Investments held for IFC. comemitsnen,'0 incdir9 rndisbursed balonces Fiscol yeors millions of U.S dollars) (millions of U.S. dollars) in whilch commitments Total Toatl Eqgih Total loans Countsy, region or other area, and obligor Sector were made IFC Syndications Loans lot cost) and equiny Poland (continued) Przedsiebiorstwo Przemnyslu Miesnego W Food and Agribusiness 1994 5.5 - 4.5 1.0 5. Opolu Spolka AkcyIna Rotter Clothing Enterprises** Textiles 1990 - - + - + Rybka Ironworknn Mining and Extraction 1990 - - 0.2 - 0. of Metals and Other Ores Spolka Grasinu Textiles 1990 - - + - + Sprint R.P. Telekom SP. z o. o. Infrastructure 1995 32.0 45.0 25.0 7.0 32.0 Star Foods Limitedwn Food and Agribusiness 1994 - - 1.4 - 1.4 THF Hotel Orbis Bristol Limited Liabilitv Hotels and Tourism 1991 10.7 - 10.2 - 10.2 Company Waldeman Machelewski'* Food and Agribusiness 1990 - - 0.2 - 0.2 190.2 54.5 244.7 Portugal Al Hikma Farmaceutica (Portugal), Limitada Chemicals and 1991 2.0 - 1.4 - 1.4 Petrochemicals Banco Finantia S.A. Finanicial Services 1988, '90 191, 10.1 - - 1).1 10.1 '94 Banco Portugues de Investiimieinto Finanicial services 1982, '85, '87, 22.7 2.0 1.8 - 1.8 '88 '90, '91 Uniao Industrial Textil E Quimica, SA Chemicals and 1990 6.6 - 4.8 - 4.8 Petrochemicals 8.0 10.1 18.1 Romania Alcatel Network Systems Romania S.A. Infrastructure 1992 2.6 - 0.6 0.7 1.3 Romlease S.A. Financial Services 1995 0.5 - - 0.5 0.5 0.6 1.1 1.7 Russian Federation Framlington Russiani Investmenit Fund Financial Services 1994 8.0 - - 8.0 8.0 International Mloscow Bank Financial Services 1994 15.0 - 15.0 - 15.0 Nizhniv Newsprint Holdings Limited Timber, Pulp and Paper 1995 41.0 45.0 30.0 11.0 41.0 Polar Lights Company Mining and Extraction 1994 60.0 - 42.0 - 4 2.0 of Fuel Minerals Russia Registry Company Finanicial Services 1995 1.5 - - 1.5 1.5 Russian Telecommunications Development Infrastructure 1995 7.5 - - 7.5 7.5 Corporation Vasyugan Services Joint Enterprise Mining and Extraction 1995 9.0 - 9.0 - 9.0 of Fuel Minerals 96.0 28.0 124.0 Slovenia Delo Pre-1Press Modernization Manufacturinig 1991 3.9 - 2.3 - 2.3 ISKRA Manufacturing 1985, '89 23.5 10.6 3.8 - 3.8 LB Leasing Financial Services 1995 3.6 3.6 3.6 - 3.6 144 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Europe Original I-nestments held for IFC. commitments0 ncluding und,sb,r,sed balances Fiscal years (mlDlons of U S dollars) (millions of U S dollars; In \shch -- commitments Totol Total Equity Total loans CountrY. region or oaher area, and obi,gor Sector were made IFC Syndicahons Loans (of costl and equity Slovenia (continued) Ljubljanska Banka - Intermarket Factoring Finanicial Services 1995 0.2 - - 0.2 0.2 Salonit Anhovo Industrija Grad Materiala Cement and 1974, '90 10.1 7.5 4.8 - 4.8 Constructioni Materials Slovenian Development Capital Fund Limited Finanicial Services 1995 5.0 - - 5.0 5.0 Tovarna Avtomobilov in Motoriev Maribor/ Motor Vehicles and 1971, '87 36.0 0.9 9.7 - 9.7 Klockner Humboldt-Deutz, A. Components Tovarna Avtopnevmatike "Sava-Semperit" Motor Vehicles and 1972, '78, '88 25.4 1.3 3.6 - 3.6 Components LJNIAL - Tovarna Glinice in Aluminija Boris Mining and Extraction 1987 35.6 - 12.8 - 12.8 Kidric of Metals and Other Ores 40.7 5.2 45.9 Turkey Assan Demir ve Sac Sanayi A.S. Mining and Extraction 1994 15.4 - 16.4 - 16.4 of Metals and Other Ores Aytac Dis Ticaret Yatirih Sanavi A.S. Food and Agribusiness 1994 10.0 10.0 8.0 2.0 10.0 Borcelik Celik Sanavii Ticaret A.S. Mininlg and Extraction 1995 32.0 - 25.0 7.0 32.0 of Metals and OCther Ores Caveli Bakir Isletmeleri A.S. Mining and Extractioni 1993 30.0 45.0 30.0 - 30.0 of Metals and Other Ores CBS Holding A.S. Manufacturinig 1994, '95 15.0 - 10.0 3.0 13.0 Cerrahogullari T.A.S. Infrastructure 1994 8.8 - 7.7 - 7.7 Coats (Turkiye) Iplik Sanayii A.S. Textiles 1989 7.7 - 3.0 - 3.0 Demirbank T.A.S. Financial Services 1994 15.0 35.0 15.( - 15.0 Dusa Endustrivel Iplik Sanayi Chemicals and 1989 17.0 8.0 3.4 - 3.4 Petrochemicals Eczacibasi Ilac Sanavi ve Ticaret A.S.` Chemicals and 1990 - - 1.5 - 1.5 Petrochemicals Elbo Gaz Mamulleri ve Kontrol Cihazlari Manufacturing 1992 14.7 4.6 11.8 - 11.8 Sanayi ve Ticaret A.S. Elginkan Holding A.S. Manufacturing 1988, '93 30.9 - 20.1 - 20.1 F S P Turizm ve Yatirim A.S. Hotels and Tourism 1990 1 .2 - 14.5 - 14.5 Finansbank,A.S. Financial Services 1992 10.1) 20.6 10.0 - 10.0 Garanti Leasing A.S. Financial Services 1995 7.0 - 7.0 7.0 Global Securities A.S. Financial Services 1994, '95 1.3 - - 1.3 1.3 GuLneV Sanavi ve Ticaret Isletmereli A.S. Textiles 1987 16.5 - 6.1 - 6.1 Heller Factoring, A.S. Finanlcial Services 1992 0.5 - - 0.5 0.5 Is Genel Finansal Kiralama A.S. Financial Services 1988, '90, '93 4.9 - 4.0 0.9 4.9 Isko Testil Sanavi ve Ticaret A.S. Textiles 1989 33.2 - 14.2 - 14.2 Kepez Elektrik T.A.S. Infrastructure 1991 2().2 - 19.0 - 19.0 Kiris Otelcilik Ve Turizm A.S. Hotels and Tourism 1989,'90 13.0 - 17.7 - 17.7 Kirklareli Cam Sanavii A.S. Manufacturing 1981, '89 31.5 1.7 9.( 9.0 Koy-Tur Holding AS. Food and AgribUsiness 1991, '92 12.7 - 7.8 4.1 11.9 Kula Mensucat Fabrikasi A.S. Textiles 1991 19.4 - 20.8 - 20.8 MedYa Holding A.S. Timber, Pulp a1d Paper 1993 12.1 - 11.9 - 11.9 Mis Sut Sanayii, A.S. Food and Agribusiniess 1992' 15.0 - 8.0 5.0 13.0 NASCO Nasreddin Holding A.S. Textiles 1992 17.5 5.0 15.0 2.5 17.5 INTERNATIONAL FINANCE CORPORATION 145 Investment PortFolio As of June 30, 1 995 Original enves/ments held for IFC. comniitrents .rcl/dino sncisbhrsed bEalances F/.cl reor, (/hlaons oa LU.S dollrs) (millions o! U 5. do.1a5rs; in which c-m,inmenms Tolaa Total Equit Toaal loans Country, region or other area, and obligo; Sector were made IFC Svndicalions Loans lot cost) and equiry Turkey (conhnued) Pinar Entegre ET ve Yem Sanayii A.S. Food and Agribusiness 1984, '94 10.9 - 6.4 - 6.4 Pinar Sut Mamulleri Sanavii A.S. Food and Agribusiness 1994 7.5 - 6.9 - 6.9 Ram Dis Ticaret A.S. Financial Services 1989, '92 18.2 56.5 15.0 - 15.0 Sanko Santral Konfeksiyon Sanayii ve Ticaret A.S. Textiles 1989 6.4 - 6.1 - 6.1 Sariville Turistik Tesisler A.S. Hotels and Tourism 1989 4.8 - 1.8 2.2 4.0 Silkar Turizm Yatirim ve Isletmeleri A.S. Hotels and Tourism 1986, '90 19.3 9.8 10.8 4.9 15.7 Sise ve Cam Fabrikalari A.S. Manufacturinig 1993 10.8 10.0 7.7 - 7.7 Trakya Cam Sanayii A.S. Manufacturing 1979, '83, '84, 65.1 31.4 17.8 6.4 24.2 '89, '91 Turk Eklonomi Bankasi, A.S. Financial Services 1995 20.0 20.0 20.0 - 20.0 Turkive Garanti Bankasi A.S. Financial Services 1993 20.0 80.0 20.0 - 20.0 Turkive Sinai Kalkinma Bankasi, A.S. Financial Services 1964, '67, '69, 19.7 45.0 - 0.7 0.7 '72, '73, '75, '76, '80, '83,'92 Uluslarrasi Endustri ve Ticaret Bankasi A.S. Financial Services 1988, '91, '92 25.0 - 9.0 - 9.0 Yeditepe Beynelmilel Otelcilik Turizm ve Hotels and Tourism 1990, '94 29.6 27.5 25.0 4.0 29.0 Ticaret A.S. 463.4 44.5 507.9 Ukraine Ukraine Fund Financial Services 1994 2.0 - - 2.0 2.0 - 2.0 2.0 Yugoslavia (Serbia and Montenegro), Federal Republic of Institut Za Fizikalnu Medicinu I Industrial and 1982, '88 19.1 - 12.2 - 12.2 Rehabilitaciju - Dr. Simon Milosev Consumer Services Investiciona Banka Titograd-Udruzena Banka Hotels and Tourism 1980 21.0 - 2.0 - 2.0 Jugobanka - Udruzena Banka Beograd Financial Services 1986 25.4 10.4 8.0 - 8.0 Loan to Eight Banks for Small-Scale Enterprisesc Financial Services 1980 26.0 4.2 1.1 - 1.1 Radoje Dakic Manufacturing 1980 18.7 - 1.2 - 1.2 Vojvodjanska Banka-Udruzena Banka Financial Services 1987, '89 56.0 31.2 57.6 - 57.6 82.0 - 82.0 Regional Advent Central Europe Management L.P. Financial Services 1995 + - - + + Advent Private Equity Fund-Central Europe L.P. Financial Services 1995 10.0 - - 10.0 10.0 Alliance ScanEast Fund, L.P Financial Services 1994 4.0 - - 4.0 4.0 Central Europe Telecomm Investments, L.P. Finanicial Services 1994 10.0 - - 10.0 10.0 First NIS Regional Fund Financial Services 1995 15.0 - - 15.0 15.0 New Europe-East Investment Fund Financial Services 1993 10.0 - - 10.0 10.0 Pam Gas BV Infrastructure 1993, '94, '95 13.5 - - 13.5 13.5 Renlaissance Capital Financial Services 1994 5.0 - - 5.0 5.0 - 67.5 67.5 Total for Europe 1,114.6 321.2 1,435.8 146 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Latin America and the Caribbean Orngimoal Investments held for IFC. co-rnrilmens' Tncludine andisbirsed balances Fiscal years )rslians of U S dollars) (millions of U S dollars) In which cornrniments Total Total Eqgifry Total loans Country region or other area, and obligor Sector were wade lFC Syndications Loans ofa cost) and equ,ty Latin America and the Caribbean Argentina Aceitera General Deheza S.A. and Food and Agribusiness 1995 25.0 15.0 15.0 10.0 25.0 Aceitera Chabas S.A. Acindar Industria Argentina de Aceros, S.A. Mining and Extraction 1960, r95 27.9 20.7 25.0 - 25.0 of Metals and Other Ores Aguas Argentiiias Infrastructure 1995 45.0 134.5 38.0 7.0 45.0 Algodonera Santa Fe S.A.t Textiles 1990 - - 0.5 - 0.5 Alpargatas S.A.I.C. Textiles 1977, '84, 66.3 36.5 31.8 2.4 34.2 86, '88, '94 Alto Parana S.A. Timber, Pulp and Paper 1993 4.2 - - 19.5 19.5 Arcor S.A.I.C. Food and Agribusiness 1988 12.0 - 1.0 - 1.0 Argentine Equity Investmnents I Limited, The Financial Services 1994 4.0 - - 4.0 4.0 Astra - Comnpaniia Argentina de Petr6leo S.A. Mining and Extraction 1989, '92 50.0 43.0 24.8 - 24.8 of Fuel Minerals Banco de Credito Argentino S.A. Financial Services 1991 10.0 - 7.1 - 7.1 Banco Franc6s del Rio de la Plata S.A. Financial Services 1989 15.0 - 9.5 - 9.5 Banco General de Negocios S.A. Financial Services 1994 15.0 - 15.0 - 15.0 Banco Roberts S.A. Financial Services 1995 20.0( - 20.0 - 20.0 Banco Rio de la Plata, S.A. Financial Services 1988, '92 50.0 - 30.2 - 30.2 Bolland & Cia, S.A." Hotels and Tourism 1989, '93 - - 0.4 - 0.4 Bridas S.A.P.I.C. Mining and Extraction 1993 50.0 60.0 35.0 15.0 50.0 of Fuel Minerals Bunge y Born S.A. Food and Agribusiness 1988, '93 63.0 57.5 13.8 - 13.8 Cadipsa S.A. Mininlg and Extraction 1993 20.0 13.0 15.0 5.0 20.0 of Fuel Minerals Capri S.A.I.C.I*' Food and Agribusiness 1993 - - 0.9 - 0.9 Carboclor Industrias Quimica S.A.I.C.-* Chemicals and 1989 - - 0.1 - 0.1 Petrochemicals Cattorini Hnos. S.A.'* Manufacturing 1986 - - 0.1 - 0.1 Cencosud, S.A.'* Industrial and 1989 - - 0.3 - 0.3 Consumer Services Cerveceria y Malteria Quilmes S.A. Food and Agribusiness 1994 15.0 15.0 15.0 - 15.0 Ceramica Pilar S.A.C.I.** Manufacturing 1986 - - 0.1 - 0.1 Colortex S.A.** Textiles 1988 - - 0.3 - 0.3 Comesi S.A.I.C.** Manufacturing 1989 - - 0.7 - 0.7 Compania Elaboradora de Food and Agribusiness 1995 15.0 6.0 15.0 - 15.0 Productos Alimenticios S.A. Compania General de Combustibles S.A. Mining and Extraction 1994 40.0 40.0 25.0 15.0 40.0 of Fuel Minerals Compania Americana de Supermercados S.A. Industrial and 1995 28.(0 - 28.0 - 28.0 Consumer Services Compafnia Sudamericana BTB S.A."* Manufacturing 1986 - - 0.1 - 0.1 Corporaci6n de Inversiones v Privatisacidn S.A. Financial Services 1990 0.1 - - 0.1 0.1 Corporaci6n General de Alimentos Food and Agribusiness 1988 - - 0.1 - 0.1 Noroeste, S.A.` INTERNATIONAL FINANCE CORPORATION 147 Investment Portfolio As of June 30, 1995 Original lmestnments held for IFC, commitments including undisbursed balances Fiscal yenas (millions of U.S. dollars) Imiljions of U.S. dollars) in which - commitments Total Total Equity Total lons Counstry, region or other area, and obligor Sector were made IFC Syndications Loans (at cost) and equity Argentina (continued) Cia Industrial Lanera S.A. (Cilsa) -o Textiles 1988 - - 0.1 - 0.1 Diario La Nueva Provincia S.R.L. ` Timber, Pulp and Paper 1986 - - 0.1 - 0.1 Enipresa Distribuidora Norte Sociedad Infrastructure 1994 45.0 128.0 45.0 - 45.0 An6nirna Emprigas S.A." Infrastructure 1993 - - 0.9 - 0.9 Ferroexpreso Pampeano, S.A.C. Infrastructure 1993 13.0 20.0 12.5 - 12.5 FerruLIm S.A.*' Cement and 1994 - - 1.5 - 1.5 Constructioni Materials Finca Flichman, S.A."' Food and Agribusiness 1988, '89 - - 0.4 - 0.4 Fracchia Hnos. S.A. Infrastructure 1989 - - 0.4 - 0.4 Frigorifico Rioplatense S.A.I.C.I.F. Food and Agribusiness 1992 13.0 6.0 9.3 1.0 10.3 Frigorifico Toba, S.A." Food and Agribusiness 1990 - - 0.2 - 0.2 Guilford Argentina S.A.-0 Textiles 1991 - - 0.4 - 0.4 Industrias Quirniicas Lauril S.A.`k Chemiiicals and 1989 - - 0.2 - 0.2 Petrochemicals Inta S.A.- Textiles 1989 - - 0.7 - 0.7 Interpack, S.A." Timber, Pulp and Paper 1993 - 1.3 - 1.3 Juan Minetti S.A. Cement and 1978, '81, '86, 37.8 67.5 6.1 0.7 6.8 Construction Materials '87,'93. '94 Jugos de] SLIr, S.A." Food and Agribusiness 1992 - - 0.3 - 0.3 Kleppe S.A. and El Caldero S.A. Food and Agribusiniess 1995 6.0 - 6.0 - 6.0 La Buenos Aires New York Life Seguros de Vida S.A. Finanicial Services 1995 2.9 - - 2.9 2.9 La BueLnos Aires S.A. Retiro Financial Services 1995 1.2 - - 1.2 1.2 La Industrial Alimenticia S.A.-n Food and Agribusiness 1993 - - 0.7 - 0.7 Longvie Parana, S.A." Manurfacturing 1993 - - 0.9 - 0.9 M.A. Soprano S.A."* Timber, Pulp and Paper 1989 - - 0.1 - 0.1 Malteria Pampa, S.A. Food and Agribusilless 1993 12.10 12.0 12 .( - 12.0 Masisa-Argentina, S.A. Tilmber, Pulp and Paper 1994 11.10 - 11.( - 11.0 Mastellone Hermanos S.A. Food and Agribusiness 1995 40.0 35.0 40.0 - 4(0.0 Maxima S.A. AFJP Financial Services 1995 14.2 - - 14.2 14.2 MBA Sociedad de Bolsa S.A. Financial Services 1992 0.2 - - 0.2 0.2 Mendoza Refrescos, S.A."0 Food and Agribusiness 1993 - - 0.9 - 0.9 Molinos Rio de la Plata S.A. Food and Agribusiness 1993, '94 2.3 - - 7.8 7.8 Nahuelsat S.A. Infrastructure 1995 35.0 - 30.0 5.0 35.0 Nuevo Central Argentino S.A. Infrastructure 1993 13.0 15.0 9.4 3.0 12.4 Oleaginosa Oeste, S.A. Food and Agribusiness 1992 20.0 15.0 18.9 - 18.9 Paiafina del Plata, S.A."0 Chemicals and 1989 - - 1.1 - 1.1 Petrochemicals Pastoril Santiaguenia S.A.`t Food and Agribusiness 1989 - - 0.3 - 0.3 Petroken Petroquimica Ensenada S.A. Chemiiicals and 199(1, '95 40.0 11.0) 33.3 - 33.3 Petrochem icals Petrolera Argentina San Jorge S.A. Mininlg and Extractioni 1992, '93 42.0 35.0 13.8 27.0 40.8 of Fuel Minierals Petroquimica Cuvo S.A.I.C. Chemicals and 1984 21.2 19.8 3.5 - 3.5 Petrochemicals 148 INTERNATIONAL FINANCE CORPORATION Investment Portfolio: Latin America and the Caribbean Original Investments he/d for IFC cnmmirnientsn iiiclsding undisbursed balances fis.a1 years (rnillans of U S dollars) (millions of U S dollars) en which commitmenls Total Total Eqnirs Total locms Country region or other area, and obhgr Seclor were made IFC Syndictoions Loons (oa costl and equily Argentina (conlinued) Piedra Grande"* Mining and Extraction 1986 - - + - + of Metals and Other Ores Polisur, S.M. Chemicals and 1992 7.0 - - 7.0 7.0 Petrochemicals Productos Pulpa Moldeada, S.A.I.C.- Timber, Pulp and Paper 1988 - - 0.3 - 0.3 Roberts Argentina Investment Capital Fund Financial Services 1995 20.0 - 20.0 20.0 Roberts Argentina Investment Fund Manager Finanicial Services 1995 0.2 - - 0.2 0.2 Roberts Participaciones S.A. Financial Services 1986