INTERNATIONAL Z P { FINANCE fF0 1 CORPORATION A Member of The World Bank Group ANNUAL REPORT 1970 -~~~~~~~o -mm, I A~~~~~~~~~~~~~~~~~k A41,~~~~~ :y~~~~~~~~~~~~~~~~~~,=~~~~~~~~~~~ L-s[-7 Production of Fiat designed automobiles at Zavodi Crvena Zastava. IFC, together with the World Bank, helped finance a program to double the Yugoslav company's output. International Finance Corporation OFFICE OF THE PRESIDENT 1818 H Street, N.W. Washington, D.C. 20433 September 21, 1970 Dear Mr. Chairman: The Annual Report of the International Finance Corpor- ation for the period July 1, 1969 to June 30, 1970 is sub- mitted herewith to the Board of Governors by the Board of Directors in accordance with Section 8 of the By-Laws of the Corporation. The Report describes the activities of IFC during the fiscal year, summarizes its position as of June 30, 1970 and includes a description of commitments made during the year. Appendices to the Report include financial state- ments and data on each of IFC's commitments. Sincerely, Robert S. McNamara Chairman Board of Governors International Finance Corporation "The purpose of the Corporation is to further eco- nomic development by encouraging the growth of productive private enterprise in member coun- tries, particularly in the less developed areas, thus supplementing the activities of the International Bank for Reconstruction and Development. ... In carrying out this purpose, the Corporation shall: i. in association with private investors, assist in financing the establishment, improvement and expansion of productive private enterprises which would contribute to the development of its member countries by making investments, without guarantee of repayment by the member government concerned, in cases where suffi- cient private capital is not available on reason- able terms; ii. seek to bring together investment opportuni- ties, domestic and foreign private capital, and experienced management; and iii.seek to stimulate, and to help create conditions conducive to, the flow of private capital, do- mestic and foreign, into productive investment in member countries. "The Corporation shall be guided in all its deci- sions by the provisions of this Article." Article One Articles of Agreement International Finance Corporation Contents Page I. The Year's Activities ......... .. . . . .. . . . .. . . . .. . . . 3 What Kinds of Investment, Where, and With What Effects ............................ 4 What Kinds of Investment, Where .............. 4 Financial Institutions for Development .... ...... 6 With What Effects ......................... 8 Associated Investors ........ . . . . . . . . . . . . . . . . . . 10 Sales of Investments ........ . . . . . . . . . . . . . . . . . . 13 Borrowings ................................ . 13 II. Basic Policies ............ .. .. .. .. .. .. .. . .. .. .. . 14 III. The Year's Financial Record ............ .. .. .. .. .. . . 15 IV. Administration and Membership .......... . . . .. . . .. . . 16 Membership and Subscribed Capital ....... . . . . . . . . 16 V. The Year's Investments ........... ................ 18 Appendices ................................... 31 _EL M~~~~~~~~~~~~~~~~~~~~ Branding cattle with dye at Industria Ganadera Colombiana, S.A., a commercial cattle raising venture in Colombia. Ten-year Summary-Fiscal Years 1961-1970 (in thousands of United States dollars) 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Gross commitments, by years $6,159 $21,340 $18,050 $20,801 $25,643 $35,346 $49,024 $50,420 $92,865 $111,848 Gross commitments, cumulative 51,181' 72,521 90,571 111,372 137,015 172,361 221,385 271,805 364,670 476,518 Total project costs, cumulative2 230,476' 373,930 529,832 768,091 927,489 1,062,114 1,397,891 1,631,956 2,116,443 2,609,189 Portfolio held by Corporation at end of tiscal year3 Total 35,400 53,444 59,369 67,302 73,583 95,733 133,787 160,828 199,389 279,167 Loans 35,400 48,352 46,137 45,994 49,602 60,758 84,063 105,236 126,927 180,725 Equity - 5,092 13,232 21,308 23,981 34,975 49,724 55,592 72,462 98,442 Sales4 2,885 1,247 9,550 10,079 13,207 9,767 7,326 18,569 44,868 18,989 Disbursements 10,379 11,876 15,915 15,584 16,263 21,841 25,424 33,087 33,405 85,270 Gross income 4,378 4,600 5,476 5,371 5,733 7,418 9,225 10,132 11,980 15,388 Net income plus net capital gains or losses 2,784 2,705 3,698 3,244 2,894 5,227 6,334 6,234 7,679 10,196 Reserve against losses, cumulative 10,6005 13,305 17,003 20,247 23,141 28,368 34,702 40,936 48,615 58,811 Member countries 59 63 73 78 78 81 83 86 91 94 I Includes commitments made from 1956 through 1960. 4 Includes acquisitions by other investors of securities covered by standby and underwriting 2 Total new investment, by IFC and others, in assisted enterprises. commitments and other dispositions of loans and equity investments. 3 Includes commitments which have been signed but on which funds may not be withdrawn until 5 Includes allocations to Reserve against Losses from 1956 through 1960. certain legal formalities have been completed and other conditions fulfilled. As of June 30, 1970 this figure was $70.2 million. 2 $3,000 I. The Year's Activities 2,500 - During the year, the International Finance Cor- poration continued to expand the volume and scope of its activities. Highlights of the year's activities were: * IFC made investments in enterprises in less developed countries amounting to $111.8 million in the twelve months ended June 30, 1970. This 2,000 _ was $19.0 million, or approximately 20 per cent, higher than a year previously. * Others invested $381 million in these businesses. (See graph to right.) These ventures thus provided a total of $493 million of new investment. * There were 29 commitments, 21 of them of $1 million or more, to 28 enterprises in 19 countries in Africa, Asia and the Middle East, Europe and Latin America and one to a regional investment institution. * IFC broke new ground in Fiscal 1970 by helping organize and finance a channel for investment by , 1,500 private enterprise in Yugoslav companies, the International Investment Corporation for Yugo- slavia (IICY), and by a loan to increase the resources of a privately owned, regional institution: ADELA Investment Company, S.A. * Commitments made in Fiscal 1970 raised IFC's total investments to $476.5 million in 153 businesses in 43 countries. Others have invested $2,132.7 mil- lion in these ventures, making a total of $2,609.2 million. (See graph to left.) 1,000 * IFC's net income rose by more than a fifth to $9.2 million. Over the years, the return on invest- ments in IFC's portfolio at June 30, 1970 has aver- aged 9.08 per cent, per annum. $600 500 500 400 -' (0 300 Total New Investment in IFC-Assisted Enterprises | 200 ° IFC's Commitments to these Enterprises 100 _ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~11 ;in100 IFC's Subscribed Capital Fiscal Years 1957/70 Fiscal 1970 What Kinds of Investment, Where, and With What Effects . What Kinds of Investment, Where Nineteen of IFC's investments in Fiscal 1970 were in manufacturing, five in development finance insti- tutions, two in mining, two in tourism and one in a telephone company. Some $80.0 million, or 72 per cent, of its $111.8 million total commitments during the year helped finance manufacturing enterprises. Taken together wi th investments of some $13.5 million in financial institutions operating at the local, national or regional level and using their funds chiefly for industrializa- Y ~~~tion projects, and $12.4 million committed to min- ing projeCts, this means that approximately 95 per cent of the funds committed by the Corpora- tion in Fiscal 1970 was directed towards industrial development. Of the $493 million committed jointly by IFC and others in Fiscal -1970, some $219 million went to establish 13 new enterprises. Approximately $274 million was for the expansion of 15 existing enterprises, including replenishment of the foreign exchange resources of three development finance institutions. The Corporation's manufacturing investments in Fiscal 1970 included enterprises in the following fields: Paper and paper products Textiles and fibers Automobiles Polyethylene Glass Aluminum Ceramics Fertilizer Cement In all, IFC made investments in 19 countries in Fiscal 1970. It made its first investments in Ceylon, the Loading sulphur at Societe Industrielle d'Engrais au S6n6gal, West Africa's first fertilizer producer. IFC Commitments by Types of Business and by Areas Fiscal 1957 Through Fiscal 1970 Per Cent of Total 0 3 6 9 12 15 Manufacturing Paper & Paper Products .................. I Fertilizers ................................ Iron & Steel ....... I I Cement & Other Construction Materials. . .I Textiles & Fibers ......................... Machinery ......................... ..... I Food & Food Processing ................ Chemicals & Petrochemical Products .. .. I I I Other Manufacturing ..................... Other T o urism ................................. Utilities, Printing & Publishing .............I.----.......I M ining .............................. ... Development Banks ...................... L I I I I I I . ! I I 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 Millions of U.S. Dollars Africa i Asia & Middle East Europe & Other Latin America & Caribbean IFC Commitments by Years and by Areas Fiscal 1957 Through Fiscal 1970 1957-61 1962-66 1967 1968 1969 1970 50 100 150 200 250 300 350 400 450 500 25 75 125 175 225 275 325 375 425 475 Africa Asia & Middle East Europe Latin America & Caribbean & Other Republic of China, the Democratic Republic of the Financial Institutions for Development Congo and Yugoslavia. Its other investments were made in: By the end of Fiscal 1970 IFC had invested $42.5 Brazil Korea million in 24 development finance companies and Chile Malaysia other financial institutions operating in 19 countries Colombia Mexico and regionally in Latin America. Ethiopia Nigeria Greece Philippines They are: Honduras Tunisia COLOMBIA MOROCCO India Turkey Corporaci6n Financiera Banque Nationale pour Kenya Colombiana in Bogota le D6veloppement IFC continued in Fiscal 1970 to emphasize the Corporaci6n Financiera Economique (BNDE) Nacional in Medellfn NIEA identification and promotion of projects. This included Corporaci6n Financiera NIGERIA assistance In the organization and financing of East de Caldas in Manizales Development Bankl Africa's first large-scale paper industry, Panafrican Corporaci6n Financiera Ltd. (NIDB) Paper Mills (E.A.) Limited and the International del Norte in Barranquilla PAKISTAN Investment Corporation for Yugoslavia. During the Corporaci6n Financiera Pakistan Industrial Credit year work continued on setting up a cement plant DEMOCRATIC REPUBLIC and Investment Corpora- in Indonesia, and the Corporation made a second OF THE CONGO tion, Ltd. (PICIC) investment of $37,500 in a pilot company, Com- Societ6 Congolaise de PHILIPPINES panfa Pino Celulosa de Centro America, S.A. (Copino), Financement du D6vel- Private Development which is seeking to develop a large pulp and paper oppement (Socofide) Corporation of the which is seeking to evelop a large pulpECUADOR Philippines (PDCP) industry to utilize the resources of Honduras' Olancho COFIEC. Ecuatoriana de SPAIN forest preserve. Desarrollo S.A. Compania Banco del Desarrollo Financiera Econ6mico Espanol, FINLAND S.A. (Bandesco) Total New Investment in Enterprises Assisted by IFC, Teollistamisrahasto Oy- THAILAND Industrialization Fund of THILndusraiac and in Those that Became Operative by End of Fiscal 1970, Finland, Ltd. (IFF) Industria Finance by Areas GREECE (IFCT) National Investment Fiscal 1957 Through Fiscal 1970 Bank for Industrial TUNISIA $1,200 Development, S.A. Societe Nationale (NIBID) d'Investissement (SNI) _ 1,100 IVORY COAST TURKEY Banque Ivoirienne de Turkiye Sinai Kalkinma D6veloppement Indus- Bankasi, A.S. (TSKB) _ 1,000 triel, S.A. (BIDI) VENEZUELA KOREA C.A. Venezolana de _ 900 Korea Development Desarrollo (Sociedad Finance Corporation Financiera) (Cavendes) . - ~~~~~~~~(KDFC) _ 800(KDFC YUGOSLAVIA .4 ~~~~~~~~~LIBERIA ;2 ?. s Liberian Bank for International Investment - 700 - Industrial Development Corporation for : D and Investment (LBIDI) Yugoslavia (IICY) i~ > , MALAYSIA REGIONAL- - 600 2 Malaysian Industrial LATIN AMERICA Development Finance ADELA Investment - 500 Berhad (MIDF) Company, S.A. - 400 During the year IFC helped establish two develop- ment finance institutions and helped replenish the 300 ~capital of three others. Its investments in these five institutions came to $13.5 million. - 200 One of the new institutions IFC helped set up during the year, the International Investment Corpora- - 100 tion for Yugoslavia (IICY), is a pioneering venture that has exceptionally broad financial support. [ICY I 0 was established to organize joint ventures between Africa Europe Asia & Latin America foreign private and Yugoslav enterprises, including & Other Middle East & Caribbean arranging the financing of those projects as neces- Dark Bars: Total New Investment in Enterprises Assisted by IFC Light Bars: Total New Investment in Enterprises that became Operative by June 30, 1970 Production at plants assisted by development finance companies the World Bank Group has helped finance: -Making fluorescent tubes in a company assisted by the Korea Development Finance Corporation (KDFC). L 7-~ -Moroccan fabrics being inventoried at a company which Banque Nationale pour le Developpement Economique (BNDE), of Morocco, helped finance. -Grain storage and shipment at a Venezuelan company assisted by C. A. Venezolana de Desarrollo (Sociedad Financiera). -Hard plastic pipes produced by a construction materials firm assisted by the Turkish development finance company, Turkiye Sinai Kalkinma Bankasi, A.S. (TSKB). =Ir !t t , >* +; > r vt; >- GS=W w ' -, sary. Fifteen Yugoslav banks supplied $3 million of to ADELA Investment Company, S.A., which provides IICY's $12 million share capital and IFC $2 million. capital, entrepreneurial and technical help to private Thirty-nine banks in Western Europe, the United enterprises in Latin America. States and Japan supplied the remainder. IFC joined other investors in increasing the capital The other new investment institution IFC helped stock of two development banks: Societe Nationale finance during the year, Soci6t6 Congolaise de d'lnvestissement (SNI), of Tunisia, to which IFC Financement du Developpement, (Socofide), ex- committed $628,572 for new equity, and Corporaci6n tended the Corporation's activities to the Demo- Financiera de Caldas, of Colombia, where IFC took cratic Republic of the Congo, a new member of up $112,182 of a new stock offering. IFC. Socofide also has a wide financial base. The In addition to cooperating with and supporting Congo Government and local investors subscribed local development finance companies, IFC collab- 55 per cent of Socofide's $4 million capital stock, orated with the following multinational institutions IFC subscribed $750,000, or approximately 19 per in providing capital for investment in developing cent. The remaining 26 per cent was subscribed by countries during Fiscal Year 1970: 13 financial institutions in Belgium, France, Germany, Italy, Japan and the United States. The International ADELA Investment East African Development Development Association, a member of the World African Development Bank Private Investment Bank Group, extended a $5 million credit to Socofide. Banco Centroamericano de Company for Asia In supplying additional capital to established Integraci6n Econ6mica (PICA) S.A. investment companies, IFC made its first commit- These institutions provided equity or loans to ment to a privately financed international institu- projects, helped underwrite a public share issue, tion operating regionally. This was a $10 million loan and bought portions of IFC investments. With What Effects IFC investment activities in 1970 provided support leading aluminum makers and an earner of foreign for the efforts of its developing member countries exchange for the Greek economy. to expand the capacity of their private sector to pro- -Poliolefinas, S.A. Industria e Comercio will make duce goods and services, to create new employ- polyethylene from raw material manufactured by a ment opportunities for their growing populations, Brazilian petrochemicals firm, Petroquimica Uniao, to strengthen their foreign trade position and to S.A., which IFC helped finance last year. This is the build new financial institutions. first of several expected projects, downstream from Investments in which IFC was associated during Petroquimica, intended to give Brazil a balanced the year helped in the following ways: petrochemicals industry, making use of Brazilian -They are expected to provide over 19,000 new products. jobs in the enterprises financed. One of IFC's important objectives is to encourage -They are expected to add some $53 million in private investment in developing member countries new export capacity and to reduce needs for imports through the mobilization of local capital and the by approximately $167 million. broadening of local ownership of industrial enter- -The Paper Industries Corporation of the Philip- prises. Several of the Corporation's investments con- pines (PICOP), which is an addition to an existing tributed to these objectives through public share lumber operation, will give Southeast Asia an inte- offerings supported by local underwriting: grated forest products industry. -Financing for the Paper Industries Corporation -A project for expanding the output of Aluminium of the Philippines included a public offering of 60 de Grece, Societe Anonyme Industrielle et Com- per cent of the new equity. The public sale of PICOP merciale, will also help lower unit production costs shares was underwritten, with the help of IFC, by a and make the company more competitive interna- group of Philippine institutions headed by Bancom tionally, strengthening its position as one of Europe's Development Corporation. 8 Commitments Fiscal 1970 Loan Equity Total Brazil Poliolefinas, S.A. Industria e Comercio (polyethylene) .$ 5,500,000 $2,877,100 $ 8,377,100 Ceylon Pearl Textile Mills, Ltd. (textiles) ....... . . . . . . . . . . . . . . . . . 2,500,000 750,000 3,250,000 Chile Minera Sagasca, S.A. (copper mining and leaching) ... . ........ 10,450,000 450,000 10,900,000 China Asia Cement Corporation (cement) ...... . . . . . . . . . . . . . . . 3,000,000 1,218,750 4,218,750 Oriental Chemical Fiber Corporation (synthetic fibers) ..... . . . . 3,000,000 - 3,000,000 Colombia Corporacion Financiera de Caldas (development financing) .... . . - 112,182 112,182 Enka de Colombia, S.A. (synthetic fibers) ...... . . . . . . . . . . . . 1,000,000 741,159 1,741,159 Enka de Colombia, S.A. (synthetic fibers) ...... . . . . . . . . . . . . - 16,806 16,806 Pro-Hoteles, S.A. (tourism) ....... . . . . . . . . . . . . . . . . . . . . 800,000 245,425 1,045,425 Promotora de Hoteles de Turismo Medellifn, S.A. (tourism) .... . . . 227,000 111,421 338,421 Congo, Democratic Republic of Societe Congolaise de Financement du Developpement (development financing) ....... . . . . . . . . . . . . . . . . . . . . - 752,758 752,758 Ethiopia Cotton Company of Ethiopia, S.C. (textiles) ..... . . . . . . . . . . . 450,000 168,000 618,000 Greece Aluminium de Gr&ce Societe Anonyme Industrielle et Commerciale (aluminum) ....... . . . . . . . . . . . . . . . . . . . . 3,500,000 5,100,000 8,600,000 Honduras Companfa Pino Celulosa de Centro America, S.A. (pulp, paper and lumber) . .... .................. .... . - 37,500 37,500 India Zuari Agro Chemicals, Limited (fertilizers) ...... . . . . . . . . . . . 3,000,000 - 3,000,000 Kenya Panafrican Paper Mills (E.A.) Limited (pulp and paper) ..... . . . . 10,580,000 4,071,799 14,651,799 Korea Atlas Paper Company, Limited (paper) ...... . . . . . . . . . . . . . . 4,500,000 500,000 5,000,000 Malaysia India-Malaysia Textiles, Berhad (textiles) ...... . . . . . . . . . . . . 1,250,000 249,900 1,499,900 Mexico Minera del Norte, S.A. (iron ore mining) ...... . . . . . . . . . . . . 1,500,000 - 1,500,000 Nigeria Arewa Textiles, Limited (textiles) ....... . . . . . . . . . . . . . . . . - 3,878 3,878 Philippines Mariwasa Manufacturing, Incorporated (ceramic tiles) ..... . . . . . 769,000 326,450 1,095,450 Paper Industries Corporation of the Philippines (pulp and paper) (including a $1,396,648 standby commitment) ....... . . . . . . . . . . . . . . . . . . . . - 2,214,284 2,214,284 Philippine Long Distance Telephone Company (telephone service) 4,500,000 - 4,500,000 Tunisia Societe Nationale d'lnvestissement (development financing) ....... . . . . . . . . . . . . . . . . . . . . - 628,572 628,572 Turkey Anadolu Cam Sanayii, A.S. (container and flat glass) ..... . . . . . . 10,000,000 1,583,330 11,583,330 Viking Kagit ve Seluloz, A.S. (pulp and paper) ..... . . . . . . . . . . 2,500,000 667,334 3,167,334 Yugoslavia International Investment Corporation for Yugoslavia (development financing) ....... . . . . . . . . . . . . . . . . . . . . - 2,000,000 2,000,000 Zavodi Crvena Zastava/Fiat S.p.A. (automobiles) ..... . . . . . . . . - 8,000,000 8,000,000 Regional Latin America ADELA Investment Company, S.A. (development financing) .... . 10,000,000 - 10,000,000 TOTALS . .... ... ..................... ...... .... $79,026,000 $32,826,648 $111,852,648 9 -Approximately 20 per cent of the equity of the Associated Indian fertilizer producer Zuari Agro Chemicals, Limited, was sold to the public through an Indian Investors underwriting syndicate. -Financing of India-Malaysia Textiles, Berhad, in Other investors in enterprises assisted by IFC in West Malaysia, included provision for sale to the Fiscal 1970 included 33 business firms and 100 finan- Malaysian public of a part of the new equity through cial institutions. Of these, 63 were in developing an underwriting by the Malaysian Industrial Devel- countries. They put up $203 million of the $493 mil- opment Finance Berhad, and the privately financed lion total financing. There were 37 investors from international investment company, Private Invest- industrialized countries, who committed $178 mil- ment Company for Asia (PICA) S.A. lion. Other members of the World Bank Group-the -Approximately 20 per cent of the equity of Pro- World Bank and the International Development Asso- Hoteles, S.A., formed to build a hotel in Cali, Colom- ciation-were among those associated with IFC in its bia, was committed to public sale, underwritten by Fiscal 1970 investments, supplying $15 million loan two privately owned Colombian development banks, capital to two projects. Corporaci6n Financiera Colombiana and Corpora- Some $146 million, or 30 per cent, of the new invest- ci6n Financiera del Valle. ment in projects assisted by IFC was equity, $281 mil- -Over a thousand glass retailers in Turkey and a lion, or 57 per cent, was debt, and $66 million, or 13 consortium of 27 local corporate and individual per cent, was derived from cash generation. sponsors put up a major part of the equity of the Sources in the developing countries provided $77 Turkish glass making firm, Anadolu Cam Sanayii, million, or approximately 52 per cent of the equity, A.S. (ACS). sources from industrialized countries provided $36 million, or 25 per cent of the equity, and IFC $33 mil- lion, or 23 per cent. Businesses and financial institutions in capital export- ing countries provided $142 million of the loan capi- tal, IFC provided $79 million, and lenders in the develop- ing countries supplied $60 million. The new Jamaica Pegasus convention and tourist hotel designed to help the country realize Business firms associated with IFC in its invest- its high potential for earning from travel. ments in Fiscal 1970 included: Aerov(as Nacionales de Fiat S.p.A., Italy Colombia (Avianca), Fuji Spinning Company, Colombia Japan Algemene Kunstzijde Unie Generalexport, Yugoslavia N.V. Group (AKU)-now Glaverbel, S.A., Belgium AKZO N.V.-the A.Y.S. Gnanam and Netherlands associates, Ceylon . ~~~~~~~~~Asia Cement Corporation, Republic of China Y.Z. Hsu and associates, / ~~~~~~~~~~~~~~~~Republic of China / ~~~~~~~~~Birla Cotton Spinning and Hyundai Group, Korea Weaving Mills, Ltd., India Intercontinental Hotels Corporation, United States Compagnie Pechiney, S.A., International Paper France Company, United States Continental Copper & Steel Karteks Ticaret ye Sanayii, Industries, Inc., United A.S., Turkey States ~~~Mitsui and Company, Corporaci6n del Cobre, Limited, Japan Chile ~~~~National Distillers and De Forenede Papirfabrikker, Chemical Corporation, Denmark United States Dowa Mining Company Orient Paper Mills, Limited, , Limited, Japan India Otomobilcilik ve Ticaret, Standard Fruit Company, SOURCES of IFC FUNDS A.S., Turkey United States Petrobras Qufmica, S.A.- Ugine Kuhlmann, France Fiscal 1957 Through Fiscal 1970 Petroquisa, Brazil Unipar-Uniao de Indclstrias Petroqufmicas, S.A., Brazil San Miguel Corporation, United Fruit Company, Philippines United States Subscribed Capital $107 Financial institutions which made independent Unused Borrowing investments in IFC assisted projects in Fiscal Year Authority 1970 included: Sales of \ $228 1970 included: C~~~~~~~~ommitmeInts ADELA Investment Corporaci6n Financiera to Others Company, S.A., Nacional, Colombia Luxembourg African Development Bank Development Finance Arrendadora Banamex, S.A Company of Kenya de C.V., Mexico Limited Development Finance Repayment Borrowings Banca Commerciale Italiana Corporation of Ceylon & Profits from World Bank Group, Italy East African Development $90 $200 Banca Nazionale del Lavoro, Bank Italy Export-import Bank of the Banco Bozzano Simonsen de United States Investimento, Brazil Banco Centroamericano de Hellenic Industrial Integraci6n Econ6mica Development Bank, Banco Nacional de Fomento, Greece Honduras House of Investments, Inc., Millions of U.S. Dollars Bancom Development Philippines Corporation, Philippines The Industrial Bank of Bank of America, New York, Japan, Limited United States The Industrialization Fund Organizing Committee for Private Investment Company Bank of Ceylon for Developing Countries, the Pan American Games, for Asia (PICA) S.A. Bank of Communications, Denmark C I . Republic of China Instituto de Fomento Colomba Privredna banka u Beogradu, The Bank of Tokyo, Ltd., Industrial, Colombia Philadelphia International Yugoslavia Japan lnvestbanco, Brazil Investment Corporation, Sinai Yatirim ve Kredi Banque de Bruxelles, SA., Jugoslavenska investiciona United States Bankasi A.O., Turkey Belgium n, Yugoslave nPhilippine American Life Societe Francaise pour le Banque Francaise du banka, Yugoslavia Insurance Company, Developpement de Commerce Exterieur, Kreditanstalt fuer Philippines l'Aluminium en Grece, France Wiederaufbau, Germany Private Development S.A., France Banque Lambert, Belgium Corporation of the Societe Generale de Loeb, Rhoades & Co., Philippines Belgique, Belgium Caisse Centrale de United States Cooperation Economique, The Long-Term Credit Bank Ten of the above institutions also invested in the France of Japan, Limited, Japan International Investment Corporation for Yugoslavia CCP Securities Corporation, Majlis Amanah Ra'ayat, (IICY). They and 13 additional Yugoslav and 31 foreign Philippines Malaysia institutions that also sponsored [ICY are listed on China Development Malaysian Industrial Page 29. Corporation, Republic Development Finance of China Berhad, Malaysia Commercial Bank of Manufacturers Hanover Ethiopia Trust Company, United Commerzbank AG, Germany States Corporaci6n Financiera Morgan Guaranty Colombiana, Colombia International Banking Corporaci6n Financiera de Corporation, United States Caldas, Colombia Corporacion Financiera del National Bank of the Valle, Colombia Congo 11 Some of the wide variety of containers for Pakistan business manufactured by Packages, Ltd. Processing baby chicks at Protinal, C.A., Venezuelan producer of livestock feeds and other inputs for improvement of Venezuelan agriculture. ~~~~~~~~~~Lrcsiniayciksa rtnl C.A.,Veneuelanprodcer o livstoc fees ad oherinutsforimpoveen X'4~ ~ ~ ~~~~~~~ofVnzea arclue Ij' - 7 Sales of C.A. Venezolana de Ingenieros Civiles Asociados, Desarrollo (Sociedad S.A., Mexico Investments Financiera) (Cavendes), The Long-Term Credit Bank Cementos B(o-B(o S.A., of Japan, Limited The Corporation increases the resources available Chile Manufacturers Hanover to it for investment by selling to others portions of COFIEC. Ecuatoriana de Trust Company, United its invstment. Such ales my be mae at te time Desarrollo S.A. Companfa States its investments. Such sales may be made at the time Financiera, Ecuador The Mitsui Bank, Limited, of IFC's investment or later. Credit Chimique, France lapan Sales continued to be substantial in Fiscal 1970 Deutsch-Sudamerikanische Natonal and Grindl despite worldwide tightness in money markets, and Bank AG, Germany Bank, Limited, Great amounted to $19.0 million. This brought cumulative Euramfin Holdings, Societe Britain net sales, including the acquisition by others of $27.5 Financiere S.A., National and Grindlays million of securities covered by standby and under- Luxembourg Finance and Development writing commitments, to $142.5 million, a sum greater First National City Bank, Corporation, Limited, Great Britain than IFC's subscribed capital of $107 million. These United States The Northern Trust sales have been a major factor in enabling the Corpo- First Pennsylvania Overseas International Banking ration to make total investments amounting to well Development Company, Corporation, United States over fourtimes itssubscribe capital.Limited, the Bahamas over four times its subscribed capital. Franklin International Cor- Private Investment Company Several institutions invested more than once in IFC poration, United States for Asia (PICA) S.A. commitments during Fiscal 1970. Purchasers included: Girard International Productos de Concreto, S.A. Arab African Bank, United The Bank of East Asia, Investment Corporation, shareholders, Costa Rica Arab Republic Limited, Hong Kong United States Shanghai Commercial Bank, Atlantic Bank of New York, Banque Francaise du Hellenic Industrial Ltd., Hong Kong United States Commerce Exterieur, Development Bank Societe Financiere France The Hong Kong and Europeenne-S.F.E., France Bamerical International Barclays Bank D.C.O., Shanghai Banking Societe Generale de Financial Corporation, Great Britain Corporation Hong Kong Banque, Belgium United States Barclays Overseas Bank of America, New York, Development Corporation The Industrial Bank of Vantage 10-90 Fund, United United States Limited, Great Britain Japan, Limited States Borrowings In Fiscal 1970 an earlier World Bank loan of $100 million to IFC was consolidated into a new loan of $200 million. IFC's Articles permit it to borrow up to four times its unimpaired subscribed capital and sur- plus so long as the Corporation is indebted to the Bank. This left IFC at the end of the fiscal year with $228 million of unused borrowing authority. 13 IL. Basic Policies In Fiscal 1970, a revised edition of the Corporation's It will also continue to attach importance to ensur- operating policies was issued, in English, French, ing that capable experienced management is avail- German, Italian, Portuguese, Spanish and in summary able, that market prospects have been carefully in Japanese. Some of its chief points are summarized reviewed, that the financial plan is realistic and that below: the technical aspects of the project have been thor- The purpose of IFC is to further economic devel- oughly explored. opment by encouraging the growth of productive The typical IFC investment will continue to be a private enterprise in developing member countries. share subscription plus a long-term loan. However, While it seeks to do this by various means, one of IFC has made, and where appropriate will make, its principal activities is promoting and stimulating straight loans, i.e., investments without an equity the flow of private capital, both foreign and domes- feature. tic, into productive investments in developing countries. IFC intends to increase its efforts in the area of The emphasis upon profitability as an essential cri- project identification and promotion. It is making terion for an IFC investment remains of first impor- staff available for substantially more work in the tance because IFC wants partners in the enterprises field to define promising projects, organize technical in which it invests, wants to revolve its funds by sell- and managerial support for them and bring them to ing participations in its investments, and, above all, a stage where suitable financing can be arranged. wants to encourage the growth of sound productive To assist in these efforts, IFC has appointed a Special private enterprise. Representative in Europe in addition to its Special However, economic benefit to the country con- Representative in the Far East. cerned is equally essential. Consequently, stress is The Corporation will give increasing attention to laid upon the need to find and assist promising busi- the building of institutions which are likely to make ness ventures that are likely to contribute to the an important contribution to economic develop- neonomi venturel t areof the country. ment. Supplementing the Bank's work of lending to economic development othcunr.development finance companies, IFC will continue IFC will be flexible in its operating policies, being to assist the growing number and kinds of invest- prepared within the limits of its investment criteria ment companies operating at the local, national or to do whatever needs to be done to get a sound regional level. Some of these companies are owned enterprise moving. Thus IFC will invest in any type and controlled locally while others have been spon- of sound and productive private enterprise provided sored by financial institutions and interests abroad. IFC's presence serves a constructive purpose. IFC's All are eligible for IFC support if they need it, are emphasis upon private enterprise does not, of itself, well managed,contributetodevelopmentand follow preclude assistance to ventures in which a govern- policies generally consistent with those of IFC. The ment has a minority interest. Corporation will maintain close working relation- The Corporation will consider a project of any size, ships with these organizations. but will continue to limit investment for its own In an endeavor to create broader-based capital account to approximately $20 million. Emphasis is markets in developing countries, the Corporation laid upon referring investments below $1 million to will also help establish and support institutions local or regional investment institutions. Here also, designed to mobilize domestic savings and improve however, flexibility is the rule, and these limits can the security and liquidity of investments. be set aside when appropriate. In recognition of the fact that a vigorous industrial In accordance with past policy, IFC will not replace sector can contribute significantly to a country's private capital, nor will it be a majority shareholder overall development, IFC will be prepared, upon in any enterprise. It will continue to insist upon local request of member countries, to give advice and participation and will invest only where the host counsel to its member governments on policies that government does not object, and where arrange- will further the development and growth of private ments can be made for the repatriation of funds. investment. 14 / { ' e r- ; T~~~~~~~~ /1 ~ ~ ~ 7 g m __ = t l * ~~~~ ~ ~ ~~~~, _ w m Construction workers raising the Dawood Hercules Chemicals Limited fertilizer plant in Pakistan. Ill. The Year's Financial Record Commitments by IFC in Fiscal 1970 of $111.8 mil- available for commitment, in addition to unused lion brought cumulative gross commitments by the authority to borrow some $228 million. Corporation since it began business in 1956 to $476.5 IFC Resources and Commitments million. Cumulative net commitments-taking into Fiscal 1957 Through Fiscal 1970 account cancellations, terminations and write-offs- (Millions of US Dollars) increased during the year from $348.5 million to Capital subscriptions ................ $107.0 $453.0 million. World Bank loan ................... 200.0 At the close of the fiscal year, the Corporation held Reserve against losses ....... ........ 58.8 a portfolio of $279.2 million, consisting of loans Repayments ............. ......... 31.4 aggregating $180.7 million and equity investments Sales' ........................... 142.5 of $98.5 million. A year earlier, the portfolio stood Total resources .............. $539.7 at $199.4 million, consisting of $126.9 million in loans Commitments ..................... $476.5 and $72.5 million in equity. Less-Cancellations and write-offs ...... 23.5 453.0 Disbursements rose substantially, from $33.4 mil- Uncommitted resources at June 30, 1970. . $ 86.72 1 Includes acquisitions by others of $27 5 million of securities coeered by IFC lion in Fiscal 1969 to $85.3 million in Fiscal 1970. This standby and underwriting commitments. reflected the sharp rise of commitments in recent 2Consists partly of proceeds of the World Bank loan (which can be used only tor loans) and partiy ot subscribed capital and accumulated earnings (which years, and brought cumulative disbursements to can be either ioaned or invested in equities). $291.7 million. As the following table shows, the Corporation IFC's gross income in Fiscal 1970 was $15.4 million, ended the year with resources of $86.7 million still consisting of $7.4 million of interest and other charges 15 on loans, $6.8 million of dividends and $1.2 million Adb O de of other income. Expenses were $6.2 million. Net * m InIstratIon operating income was thus $9.2 million, 23 per cent higher than the previous year's net income of and Membership $7.5 million. Net profits of $1.0 million on sales of investments raised net income and profits to $10.2 million as William S. Gaud was appointed Executive Vice against $7.7 million the year before. The $1.0 million President of IFC on October 1, 1969. He succeeded of profits on sales resulted from 17 transactions on Martin M. Rosen, who had been Executive Vice Pres- which profits of $1.1 million were realized and a loss ident of the Corporation since October 20, 1961. of $101,708 was incurred on the sale of IFC's hold- Ladislaus von Hoffmann was appointed Vice Presi- ings in Aevol Industrial Company of Organic Fer- dent, effective July 1, 1970, succeeding James S. Raj. tilizers, S.A. in Greece. During the year, the Department of Investments- At the end of Fiscal 1970 the Corporation's cumula- Africa, Asia and Middle East was reorganized into tive net income and profits totaled $58.8 million, all two new departments, a Department of Investments of which has been transferred to the Corporation's -Africa and Middle East, of which Albert Adomakoh reserve against losses. was appointed Director, and a Department of Invest- Through the end of Fiscal 1970, the average annual ments-Asia, of which Ronald Jones was appointed return on equity investments held by the Corporation Director. over their present life was 9.80 per cent, and the Two other new posts were created and filled. similar return on loans was 8.60 per cent. This resulted Moeen A. Qureshi was appointed Economic Adviser in an average annual return of 9.08 per cent, com- to IFC. Alfred E. Davidson was appointed Special pared to 8.45 per cent at the end of Fiscal 1969. Representative of IFC in Europe. These returns reflect dividends, interest and other IFC's international advisory panel met with the charges, profits and losses on sales of portions of Corporation's officers and management in Washing- investments, and miscellaneous charges and credits. ton in October 1969, to discuss IFC activities and policies. The panel members are: Dr. Hermann J. IFC's profits on sales of investments and other trans- Abs, Chairman of the Supervisory Board of the actions smice its inception in 1956 have amounted to Deutsche Bank, A.G., Frankfurt; Viscount Harcourt, $o5.1 millon. Losses-icluding losses of $553,334 due Managing Director, Morgan Grenfell & Company, to a currency devaluation-have amounted to $1.6 Limited, London; Dr. Raffaele Mattioli, Chairman, million or three-tenths of one per cent of net Banca Commerciale Italiana, Milan; Andre Meyer, commitments. Senior Partner, Lazard Freres & Company, New York; Two commitments were cancelled in full during and Baron Guy de Rothschild, Partner, de Rothschild the year. One was a $6.23 million commitment to Freres, Paris. Karnaphuli Paper Mills, Limited, in Pakistan, made At the end of Fiscal 1970, IFC had a staff of 131 in Fiscal 1969. The other, made in the current fiscal including nationals of 27 countries. Of these, 75 year, was a commitment of $338,421 to Promotora were professionals. de Hoteles de Turismo Medellin, S.A., in Medellin, Colombia. Four other small, partial cancellations of unused commitments totaled $764,714. This brought cumulative cancellations and write-offs since 1956 Membership and to $23.5 million. Two other investments were repaid or sold in full Subscribed Capital during the year, bringing the total number of invest- ments closed out to 39 in 19 countries, represent- Three countries became members of the Interna- ing $26.9 million disbursed. tional Finance Corporation in Fiscal 1970, raising At the close of the year D.L.R. Plasticos do Brazil, membership to 94. Swaziland joined the Corporation S.A. was in default of $200,000, as was the case at the on September 22,1969, with a subscription of $35,000. end of Fiscal 1969. Fertilizantes Sinteticos, S.A., of The Democratic Republic of the Congo became a Peru, while current on its primary debt, was in arrears member on April 15, 1970, with a subscription of on payments of $65,701 interest due on convertible $332,000. The Yemen Arab Republic joined on May subordinated debentures. Editorial Codex S.A., of 22, 1970, with a subscription of $47,000. These acces- Argentina had not paid interest and commitment sions raised total subscriptions to the Corporation's charges due amounting to $304,628. capital to $106,954,000. 16 -=~~L Loading at General Cement Company in Greece. Pu-~~~~~~~~~~~~~~~~- Workers set up a loom at Textiles Fabricato de -j F Nicaragua, S.A., which began production for `7 i FL\ use in Central America this year. :11~ Production at Malayawata Steel, Berhad, _ Malaysia's largest single industrial enterprise. / 17 _ -K-7 ~~~~~~~~~~~~~~~~~~~~~~~~~~~' '=I* . -N '-,*.$" _v* ~/ '; V. The Year's Investments BRAZIL CEYLON $8,377,100 in Poliolefinas, S.A. $3,250,000 in Pearl Textile Mills Ltd., Industria e Comercio, a $29.0 a $13.8 million integrated million polyethylene textile mill. enterprise. Pearl Textile Mills will have an annual capacity of This was a second investment by IFC to help estab- 13.4 million yards of cotton and polyester-cotton fabric. lish an integrated petrochemical products industry The mill will provide some 1,700 new jobs. It is in Brazil. Poliolefinaswill operatea low-density poly- expected to generate net foreign exchange savings ethylene plant located at Capuava, near Sao Paulo. of more than $1 million a year by meeting demand At full capacity, Poliolefinas is expected to make for textiles in Ceylon that currently exceeds domes- a substantial net foreign exchange contribution to the tic output. Brazilian economy. It is also expected to stimulate Mr. A.Y.S. Gnanam, a prominent Ceylonese indus- further investment in businesses converting poly- trialist, sponsored the company and, with a group ethylene into consumer goods. Polyethylene con- of associates, provided more than 60 per cent of the sumption has grown rapidly in Brazil during the past equity. few years. Presently about half of its consumption An additional 16 per cent of the equity is to be is supplied by imports. raised through a public stock offering in Ceylon, National Distillers and Chemical Corporation, of making the company three-quarters Ceylonese the United States, and two Brazilian companies were owned. The public offering will be underwritten by sponsors of Poliolefinas together with IFC. IFC last the sponsor and the Development Finance Corpo- year helped finance Petroqufmica Uniao, S.A., a ration of Ceylon. naphtha cracking and reforming project that will The Private Investment Company for Asia (PICA) supply ethylene as raw material to Poliolefinas. S.A. participated in IFC's commitment. Two Ceylonese The IFC commitment included equity, loan and financial institutions and a Japanese company also contingency provision. provided substantial financial support. Two United States institutions participated in IFC's Technical assistance is being provided by Bombay commitment: Bamerical International Financial Cor- Dyeing and Manufacturing Co., Limited, of Bombay, poration, a subsidiary of Bank of America, N.T. & S.A.; India. Gherzi Eastern, Limited, a company jointly and Manufacturers Hanover Trust Company. owned by Bombay Dyeing and Gherzi Textil Organi- The financial plan was as follows: sation, of Switzerland, will serve as consultant dur- (US$ million) ing construction. Share Capital National Distillers and Chemical Corporation .................. 32 The financial plan was as follows: Petrobr6s Quimica, S.A-Petroquisa. 3.2 (US$ million) Unipar-Uniao de Industrias Share Capital Petroquimicas, S.A . . ..................2.7 A.Y.S. Gnanam and associates .3.131 International Finance Corporation ... 2.3 11.4 Public share offering in Ceylon .0.819 International Finance Corporation . . . 0.750 Loan Capital Mitsui and Company, Limited .0.336 International Finance Corporation . .. 5.0 Development Finance Corporation of Investbanco, Banco de Investimento Ceylon ..................... 0.168 5.204 do Brasil and the Banco Bozzano Simonsen de Investimento ....... 3.9 Loan Capital Dutch and Japanese suppliers' credits . 3.7 Bank of Ceylon and the Bank of America, New York ....... 2.5 Development Finance Corporation Export-import Bank of the of Ceylon ................... 6.132 United States ........ ........ 2.5 17.6 International Finance Corporation .. . 2.500 8.632 TOTAL .29.0 TOTAL .13.836 (IFC's commitment also ncluded contingency commitments ot $1.1 million.) 18 ~~~~~ : _....S~i, 410l.. Production line at Celulosa Argentina, S.A. pulp and paper company. CHILE IFC is receiving 15 per cent of Sagasca's shares in $10,900,000 in Minera Sagasca, S.A., a consideration of its provision of loan capital. The ,,2.5 million copper mining Industrial Bank of Japan, Limited, and The Long-Term $32.5 mililon copper mining Credit Bank of Japan, Limited, participated in IFC's project. investment. The financial plan was as follows: The Corporation joined Chilean, Japanese and (UTs million) United States interests in financing Minera Sagasca, Share Capital a mining venture located east of the port of Iquique Continental Copper & Steel in northern Chile, to produce 24,000 metric tons a Industries, Inc ................. 1 500 year of fine copper equivalent in the form of copper Corporaci6n del Cobre ........... 1.000 2.500 cement concentrate. The project is expected to generate substantial for- Shareholders' Advances eign exchange earnings for Chile and contribute to Industries, Inc ................. 4.875 the economy of the Iquique region through higher Corporaci6n del Cobre ........... 1.625 employment, development of infrastructure and crea- International Finance Corporation ... 1.260 7.760 tion of ancillary business activities. Loans Sponsors of the company are Continental Copper Senior Loans: & Steel Industries, Inc., of New York, a manufacturer Dowa Mining Company, Limited 3.000 of metal and rubber products; Corporaci6n del Cobre, International Finance Corporation. 2.000 5.000 the Chilean Government copper agency; and IFC. IFC's Junior Loans: commitment consists of loan and overrun provision. Dowa Mining Company, Limited . . 7.000 Dowa Mining Company, Limited, of Japan, which International Finance Corporation. . 6.740 provided part of Sagasca's loan capital, will purchase Continental Copper & Steel half of the mine's output and, at Sagasca's option, Industries, Inc .2.625 up to all of the other half during the first six years Corporaci6n del Cobre .0.875 17.240 of operation. Dowa will purchase for itself and two TOTAL .32.500 other Japanese companies. (IFC's commitment also included contingency commitments of $900,000.) 19 CHINA, REPUBLIC OF $4,218,750 in Asia Cement Corporation $3,000,000 in Oriental Chemical Fiber for a $14.5 million expansion. Corporation, a new, $14.3 Expansion of Asia Cement, the second largest million polyester staple cement producer of Taiwan, will increase the com- fiber enterprise. pany's capacity from 900,000 to 1.7 million metric Oriental Chemical Fiber is being established by tons a year. The new capacity is needed to meet Asia Cement Corporation, in which IFC also invested growing domestic demand and maintain cement this year. Asia Cement is a member of the Far Eastern exports, one of the country's important foreign Textile Group of companies, controlled by Mr. Y. Z. exchange earners. Hsu and associates. Asia Cement is a member of the Far Eastern Tex- Oriental Chemical Fiber's annual output of 7,500 tile Group of companies, of Taipei. metric tons of polyester staple fiber will substitute Shanghai Commercial Bank Ltd., of Hong Kong, for synthetic fibers now imported and make China's participated in IFC's commitment. textile industry less dependent on such imports. The financial plan was as follows: The financial plan was as follows: (US$ million) (US$ million) Share Capital Share Capital International Finance Corporation ..... 1.22 Asia Cement Corporation ..... ...... 2.60 Asia Cement Corporation employees and Y. Z. Hsu and associates .1.55 4.15 shareholders ................... 0.12 1.34 Loan Capital Loan Capital Senior Debt: Suppliers' credits ........ ......... 6.13 Suppliers' credits ....... ......... 4.31 International Finance Corporation ..... 3.00 International Finance Corporation ... . 3.00 Deferred customs duties ........... 2.12 Deferred import duties ............ 1.45 Bank of Communications, Republic China Development Corporation . 0.56 9.32 of China.1.25 12.50 Subordinated Debt: Cash Generation .0.63 Asia Cement Corporation .......... 0.85 TOTAL .14.47 TOTAL ......................... 14.32 COLOMBIA $1,741,159 in Enka de Colombia, S.A., companies in which IFC has invested-Corporaci6n for a $10.2 million synthetic Financiera de Caldas, in Manizales, and Corpora- ci6n Financiera Nacional, in Medellmn-and Algemene fiber expansion program. Kunstzijde Unie N.V. Group (AKU) (now AKZO The investment, IFC's second in Enka, is to help N.V.) of the Netherlands. finance a 70 per cent increase in productive capacity. The financial plan was as follows: Enka is Colombia's largest and most diversified (U5$ million) synthetic fiber manufacturer and the nation's only Share Capital nylon tire yarn and nylon tire fabric producer. The Algemene Kunstzijde Unie company also makes nylon textile yarn and polyester N NV. Group (AKU) .1.559 textile yarn and staple. IFC's first investment in the Colombian shareholders . 0,846 enterprise was made in 1966 to help finance the International Finance Corporation.. 0.641 3.046 company's present facilities, now producing at capacity. Loan Capital IFC's current commitment included loan, equity Kreditanstalt fuer Wiederaufbau .. 2.000 and contingency provision. Societe Financiere Euro- International Finance Corporation . . . 1.000 peenne-S.F.E., of France, participated in IFC's Suppliers' credits. . 1.000 4.000 investment. Cash Generation 3.177 Partners in the project include five Colombian TOTAL . . .10.223 textile firms; two Colombian development finance (FC's commntment also included a contingency commitment of approximately $100,000.) 20 CONGO, DEMOCRATIC REPUBLIC OF $1,045,425 in Pro-Hoteles, S.A., a $4.1 $752,758 in Societe Congolaise de million hotel enterprise. Financement du Developpe- A broad group of Colombian investors, two United ment, a new $11.0 million States organizations and IFC provided the financing industrial financing institution. for a new first class business and tourist hotel in Cali. Over $1 million equivalent in equity is being sup- IC and the International Development Associa- plied by Colombian investors-one-third of this by a Ion and the milion invlopment for publicshare offering underwritten bytwo Colombian tion provided $5.75 million in loan and equity for developmentfinancecompaniesthatlFChasinvested a new private financing institution established to in: Corporaci6n Financiera Colombiana and Corpo- further industrial expansion in the Congo. raci6n Financiera del Valle. Societe Congolaise de Financement du Devel- The hotel will employ approximately 300 Colom- oppement (Socofide) is sponsored by Government, bians andl wis expeceloy eapprnxim$50 000 foreigno- commercial, industrial and financial organizations change annually. in the Congo and by the following 13 foreign finan- The hotel is scheduled for completion in time for cial Institutions: the Pan American Games, to be held in Cali in July 1971. It will help relieve the shortage of accommo- Belgium Banca Nazionale del Lavoro dation in the city and will be a link in a nationwide Banque de Bruxelles, S.A. chain of first class hotels being developed to en- Banque Lambert Japan courage tourism. Societe Gen&rale de The Bank of Tokyo, Ltd. The IFC commitment included loan, equity and France Industrial Bank of contingency provision. The bulk of the Colombian Banque Francaise du The Long-Term Credit Bank equity financing was provided by a Colombian in- Commerce Exterieur of Japan, Limited vestor group including two Government sponsored Caisse Centrale de institutions, the Organizing Committee for the Pan Cooperation Economique United States American Games and the Instituto de Fomento Indus- Germany Morgan Guaranty trial; the two private development finance com- Commerzbank, AG International Banking panies; a group of Cali businessmen and Colombian Italy Corporation panies; a group oCaibsnsmnndolban Banca Commerciale Italiana Philadelphia International corporations including Aerovfas Nacionales de Co- Croup Investment Corporation lombia (Avianca). Intercontinental Hotels Corporation, a Pan Ameri- can World Airways subsidiary, is the largest single Socofide will invest primarily in manufacturing shareholder with 22.6 per cent of the equity. Inter- and processing industries, but commercially ori- continental Hotels will assist in the construction of ented agriculture, forestry, fishing, transport and the hotel and will operate it. tourism projects are also eligible for assistance. Loans were provided by Colombian and U.S. Socofide may provide medium and long-term loans, institutions. make equity investments, underwrite securities and The financial plan was as follows: provide guarantees. (US$ million) Share Capital Colombian investor group ........... 0.75 Intercontinental Hotels Corporation. . .. 0.38 The financial plan was as follows: Public share offering in Colombia ..... 0.34 (US$ million) International Finance Corporation ..... 0.21 1.68 Share Capital Loan Capital Congolese commercial banks and private Instituto de Fomento Industrial, investors ...................... 1.20 Corporaci6n Financiera Colombiana, Foreign financial institutions ......... 1.05 Corporaci6n Financiera del Valle 0.82 International Finance Corporation. 0.75 International Finance Corporation ..... 0.80 Congolese Government . . . ....... 0.50 Organizing Committee for the Pan National Bank of the Congo .0.50 4.00 American Games ........ ........ 0.27 Loan Capital Corporaci6n Financiera Colombiana, International Development Association . . 5.00 Corporaci6n Financiera del Valle ... 0.25 Subordinated Congolese Government Export-Import Bank of the United States 0.25 2.39 advance ....................... 2.00 7.00 TOTAL .4.07 TOTAL........................ 11.00 21 ETHIOPIA a subsidiary of Girard Trust Bank of Philadelphia; $618,000 in Cotton Company of Credit Chimique, of France; and Atlantic Bank of $618,000 in Cotton Company of New York, a subsidiary of the National Bank of Greece. Ethiopia, S.C., for a $5.0 million Additional equity financing was provided by Alum- expansion of textile production. inium de Grece shareholders, including: Compagnie Pechiney, S.A., of France, the majority shareholder A second investment in Cotton Company of and a major world aluminum producer; Societe Fran- Ethiopia was made by IFC and Ethiopian and Japa- caise pour le Developpement de l'Aluminium en nese investors to help finance a new expansion of Grece, S.A., of France; the Hellenic Industrial Develop- the company, the largest integrated textile mill in ment Bank, of Greece; and Ugine Kuhlmann, of France. the country. IFC's earlier investment, in 1964, was The National Bank of Greece has an indirect interest part of a program to modernize the company's facil- through holdings in Societe Francaise pour le Develop- ities and double its then production. pement de I'Aluminium en Grece, S.A. The Arab African Bank of the United Arab Republic The financial plan was as follows: participated in IFC's commitment. (US$ million) The financial plan for the current project was as Share Capital follows: (US$ million) International Finance Corporation ..... 4.75 Existing shareholders ...... ........ 2.00 6.75 Share Capital International Finance Corporation . .. 0.168 Loan Capital Fuji Spinning Company .......... 0.056 0.224 Suppliers' credits .14.39 Hellenic Industrial Development Bank . 4.00 Loan Capital International Finance Corporation . 3.50 21.89 Suppliers' credits ....... ........ 1.649 International Finance Corporation . . 0.450 Cash Generation .71 Commercial Bank of Ethiopia ...... 0.400 2.499 TOTAL ..29.35 Cash Generation .2.306 (IFC's commitment also included a contingency commitment of $350,000.) TOTAL .5.029 INDIA $3,000,000 in Zuari Agro Chemicals, GREECE Limited, a $75.4 million $8,600,000 in a $29.4 million expansion fertilizer project. of Aluminium de Grece, A second investment was made by IFC during Fis- Societe Anonyme Industrielle cal 1970 in the Zuari Agro Chemicals fertilizer project, et Commerciale. raising its total commitment to $18.94 million. The Mitsui Bank, Limited, of Japan participated in IFC and French and Greek interests financed an the new IFC commitment. expansion of Aluminium de Grece, Greece's largest The plant is being built at Goa in southwest India industrial enterprise and only present producer of by Toyo Engineering Corporation, of Japan. Zuari alumina and aluminum. Agro Chemicals will have an ammonia capacity of The project is expected to lower unit production 220,000 metric tons a year which it will use to pro- costs and strengthen the company's position as one duce 340,000 metric tons of prilled urea. Sixty thou- of Europe's leading aluminum producers. Aluminium sand tons of the prilled urea will be used in manu- de Grece sells most of its production abroad and it facturing 150,000 metric tons of granulated compound is anticipated that the project will provide Greece fertilizer. with substantial foreign exchange earnings. The project was launched last year under the spon- The financing will be used to increase the com- sorship of United States Steel Corporation, Pitts- pany's alumina capacity from 250,000 to 475,000 burgh, and the Birla Group, one of the largest indus- metric tons and aluminum capacity from 78,000 to trial organizations in India. Additional financing was 90,000 metric tons a year, expand dock facilities, and supplied by a public share offering underwritten by provide additional permanent working capital. a consortium of Indian financial institutions and IFC's commitment consisted of a loan, equity, and private brokers which was heavily oversubscribed; contingency provision. European and United States the United States Agency for International Develop- financial institutions participated in the Corpora- ment; a group of United States institutional investors tion's investment-Euramfin Holdings Societe Finan- headed by the Bank of America, New York; Armour ciere, S.A., an affiliate of Istituto Mobiliare Italiano, and Company, Chicago; and First Chicago Inter- of Italy; Girard International Investment Corporation, national Corporation. 22 Road construction in Ethiopia. This kind of work, helped by the World Bank Group, prepares the way for buildup of the private industrial sector that IFC assists. }~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W ............''e gw. . ~~-' U-' 1; ''''' ,''; ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- 454 '77| ' i }>~* ' 1 Or ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ _ _ _ WI~~~4 KENYA the project. IFC correspondingly reduced its $14,651,799 in Panafrican Paper Mills commitment. Participating in IFC's commitment were National (E.A.) Limited, a $35.0 and Grindlays Finance and Development Corpora- million pulp and tion, Limited, Barclays Bank D.C.O. and its subsidiary paper mill. Barclays Overseas Development Corporation Limited, all of the United Kingdom; the First National City Panafrican Paper Mills will be East Africa's first Bank, of the United States; and the Arab African integrated pulp and paper producer. It will be located Bank, of the United Arab Republic. at Broderick Falls, in Western Kenya. Using local raw materials, it will produce, initially, The financial plan as amended was: some 45,000 tons of paper a year, primarily for domes- (US$ million) tic consumption. Substitution of local production Share Capital for imports is expected to result in substantial annual International Finance Corporation ..... 3.14 net foreign exchange savings. Orient Paper Mills, Limited ..... ..... 3.00 ane aforeign exchager Mills will employsome1300 East African Development Bank ....... 0.50 Panafrican Paper Mills will employ some 1,300 Government of Kenya of Kenya .............. 2.31 people. An additional 1,000 employees are expected Development Finance Company to be employed by the Forest Department of the of Kenya Limited .......... 0.29 9.24 Government of Kenya in replanting pulpwood trees and caring for immature trees. Income notes The mill is to utilize forest plantations about 90 y miles to the southeast of Broderick Falls during the Loan Capital early years of operation. New pulpwood plantations Senior Loan: are being established at Turbo some 30 miles from Suppliers' credits .......... ...... 8.98 are bing esitalished atsTurbo, so 3 mles from International Finance Corporation ... . 5.99 the mill site, with the assistance of a loan provided African Development Bank ......... 1.45* by the World Bank. East African Development Bank ...... 0.50 Sponsors of Panafrican Paper Mills are Orient Paper Development Finance Company Mills, Limited, an Indian company associated with of Kenya Limited .......... 0.29 17.21 the Birla Group, and the Government of Kenya. Convertible Loan: Financing was also provided by the African Devel- International Finance Corporation .. .. 3.14 opment Bank (AfDB) and the East African Develop- East African Development Bank ...... 0.50 ment Bank, which were investing in a project with Development Finance Company IFC for the first time, and the Development Finance of Kenya Limited ....... ........ 0.29 3.93 Company of Kenya Limited. Initially IFC's commit- TOTAL ..35.00 ment included AfDB's participation. After the close ment inclued AfDB'sparticipaton. Afterthe close (IFC's commitment aiso inciuded a contingency commitnment of $933.000.) of the fiscal year, AfDB agreed to invest directly in Amount initially inciuded in IFc's commitment. KOREA $5,000,000 in Atlas Paper Company, Limited, an $11 million integrated paper mill. The Atlas Paper Mill is designed to de-ink waste The financial plan was as follows: paper and process the resulting pulp to produce (us$ million) 37,000 metric tons a year of newsprint and writing Share Capital and printing paper. Hyundai Group ........... . .. . 3.0 The new company is sponsored by the Hyundai International Finance Corporation ..... 0.5 3.5 Group, which is active in construction, cement and Loan Capital building materials production, automobile, bus and Senior Debt: truck assembly, and trading and shipping operations. International Finance Corporation ... . 4.5 The Private Investment Company for Asia (PICA) Suppliers' credits ................ 1.9 6.4 S.A. participated in IFC's commitment. Honshu Paper Subordinated Debt: Manufacturing Company, Limited, of Japan, is pro- Hyundai Group ..1.1 viding engineering services and employee training. TOTAL ..11.0 24 _e m~~ - hS MALAYSIA offering underwritten by Malaysian Industrial Devel- $1,499,900 in India-Malaysia Textiles, opment Finance Berhad, and the Private Investment $1,499,90 .nia al i TCompany for Asia (PICA) S.A. Malaysian financial Berhad, a $5.9 million textile institutions provided loans. enterprise. The Corporation joined with Malaysian and Indian The financial plan included the following com- investors to establish India-Malaysia Textiles, a new mitments: venture in West Malaysia. The company will be one (US$ million) of the largest fabric manufacturers in Malaysia with Share Capital an integrated mill employing 900 and capable of Public share offering in Malaysia ...... 1.139 producing 7.3 million square yards of suiting, shirt- Birla Cotton Spinning and Weaving ing and dress material annually. Mills, Limited ................... 1.111 The project is sponsored by Birla Cotton Spinning Mailis Amanah Finat .............. 0.278 and Weaving Mills, Ltd., a textile firm in the Birla International Finance Corporation. 0.250 2.778 Group of companies in India. A substantial part of Loan Capital the equipment is being obtained from India, thereby International Finance Corporation ..... 1.250 benefiting that country as well. Malaysian Industrial Development Equity commitments were made by Birla, a Malay- Finance Berhad ................. 1.062 sian investment institution (Majlis Amanah Ra'ayat) Malaysian bank consortium and and IFC. The financial plan also provided for a share TOTAL. ................ .85.943 MEXICO Previously the Corporation participated in under- $1,500,000 in Minera del Norte, S.A., writing four Fundidora share issues, and in a com- $1,500,000 bined underwriting and private placement of con- a $4.6 million mining project. vertible debentures-helping the company raise An investment in a new iron ore mining project approximately $44 million equivalent in all. intended to assure an adequate ore supply for Mexico's largest privately owned steel company was The financial plan for the current assistance was made by the Corporation. as follows: The IFC commitment was to Minera del Norte, Loan Capital (US$ million) owned by Compania Fundidora de Fierro y Acero de International Finance Corporation ........ ..... 1.5 Monterrey, S.A., and four of its subsidiaries. Minera Lease Purchase Arrangements del Norte will supply iron ore to Fundidora, which Arrendadora Banamex, S.A. de C.V .............. 2.4 has increased steel ingot capacity from 300,000 metric tons annually in 1962 to about 850,000 metric tons Cash Generation ....................... 0.7 at present. ~~~~~~~~~~~~~TO TAL ........................ . . . . 4.6 at present. TOTAL.4.6 25 PHILIPPINES $1,095,450 in Mariwasa Manufacturing, $2,214,284 in Paper Industries Incorporated, for a $4.1 Corporation of the million expansion of Philippines, for a $68.6 ceramic tile output. million pulp and paper IFC and Philippine sources joined to provide most enterprise. of the financing needed to expand production of a Philippine and United States investors and IFC Philippine glazed ceramic floor and wall tile manu- joined to finance the addition of a pulp and paper facturer. mill to a Philippine lumber company-making it Mariwasa is a young, rapidly growing company Southeast Asia's first integrated forest products established by the Coseteng family and a number complex. of other Filipino businessmen. The project will ex- Most of the equity for Paper Industries Corpora- pand Mariwasa's capacity 75 per cent to 16.4 million tion of the Philippines (PICOP) is being provided square feet of glazed ceramic tile per year. by Philippine investors-60 per cent of it through a The increased output is expected to contribute to public share offering. the Philippines' foreign exchange earnings and help PICOP and its wholly-owned subsidiary, Bislig Bay reduce the country's dependence on traditional Lumber Company, Incorporated, are currently en- agricultural exports. gaged in logging, sawn lumber, plywood and veneer Part of the equity was supplied through a public operations in Surigao del Sur, on the southern island share offering. of Mindanao. The project will create some 1,200 new The Private Investment Company for Asia (PICA) jobs, add annual productive capacity of 150,500 metric S.A. participated in IFC's investment. tons of newsprint, linerboard and corrugating me- At the time of IFC's commitment the project's dium, and is expected to result in net foreign financial plan, later altered by an exchange rate exchange savings of $15 million a year by substitut- change, was as follows: ing local production for imports. (US$ million) Sponsors of the project are the Soriano Croup of Share Capital the Philippines, which made an equity investment Common Shares: through one of its companies, San Miguel Corpora- Coseteng family and associates ...... 0.342 tion; and the International Paper Company, a United Preferred Shares: States pulp and paper producer. International Finance Corporation ... . 0.512 IFC's investment included an equity commitment Private Development Corporation and a standby commitment. of the Philippines .............. 0.255 The public sale of shares was underwritten, with Philippine American Life Insurance t Company .................... 0.255 the help of IFC, by a group of Philippine institutions Public share offering in the Philippines 0.034 1.398 headed by Bancom Development Corporation and including the Private Development Corporation of Loan Capital the Philippines, CCP Securities Corporation, and Private Development Corporation of the Philippines ................ 1 300 House of Investments, Incorporated. The offering International Finance Corporation ..... 0.769 was successful and in order to accommodate a num- Philippine commercial banks . ........ 0.366 2.435 ber of small Philippine investors, IFC made part of its shares available to them. Cash Generation .0.220 Additional funds were provided by a United States IOTAL.4.053 bank, Japanese suppliers, and internal cash genera- (IFC's commitment was subsequently reduced by an exchange rate change to $1.1 tion. Approximately $7 million equivalent had already been spent on the project by PICOP. 26 The financial plan, subsequently altered by an TURKEY exchange rate change, was as follows: $11,583,330 in Anadolu Cam Sanayii, Share Capital (US$ million) A.S., a $33.4 million flat Public share offering in the Philippines 6.03 glass and glass container International Paper Company ......... 1.54 enterprise San Miguel Corporation ...... ...... 1.28 International Finance Corporation ..... 1.28 10.13 Over a thousand Turkish glass retailers and a con- Loan Capital sortium of Turkish investors provided the bulk of the Suppliers' credits ........ ......... 36.74 share capital for Anadolu Cam Sanayii (ACS), which Manufacturers Hanover Trust Company. 3.00 39.74 will build a glass plant near Mersin, on the southern Cash Generation .11.73 coast of Turkey. The plant will have an annual capacity Previous Investment ------7.00 of 53,000 metric tons of Pittsburgh-type flat glass, TOTAL. 68.60 50,000 metric tons of clear glass containers and 30,000 *___ metric tons of amber glass containers. (IFC's commitment, including a standby commitment of $2.18 million, totaled $3.46 million-subsequently reduced by an exchange rate change to $2.21 million.) The ACS project IS Intended to meet growing demand for glass in Turkey and export part of its pro- duction. It will employ over 1,100 workers and is $4,500,000 of an $11 million debenture expected to result in substantial foreign exchange issue for expansion of savings. Glaverbel, S.A., of Belgium, the world's largest pro- Philippine Long Distance ducer of drawn flat glass, is one of the sponsors of ACS. Telephone Company. Turkish investors are supplying 80 per cent of ACS's share capital, making it one of the most widely The Corporation helped finance a two-phase held enterprises in the country. The sponsors include expansion program designed to keep up with the the individual glass retailers and a consortium of 27 rapidly growing demand for telephone service in the Turkish corporate and individual sponsors. Philippines. IFC's commitment consists of loan, equity and con- IFC purchased $4.5 million of a Philippine Long tingency provision. Societe Generale de Banque, Bel- Distance Telephone Company (PLDT) $11 million gium's largest bank, is participating in a substantial debenture issue. The balance of the debenture issue, part of IFC's loan. which has detachable warrants to purchase common A bond issue in Turkey, a bank loan and deferred stock,was sold to institutional investors in the United customs duties completed the financing. States in a private placement arranged by Loeb, Verlica-Momignies, S.A., the largest Belgian pro- Rhoades & Co., of New York, and House of Invest- ducer of glass containers, will provide technical and ments, Incorporated, of the Philippines. operational assistance. PLDT accounts for 75 per cent of the telephones in the Philippines. It has expanded rapidly in recent years to meet the growing demand for telecom- munications facilities. The first phase of its expansion The financial plan was as follows: program, completed in 1967, increased the number (US$ million) of telephones serviced by PLDT from 111,000 to Share Capital 154,000, converted several manual exchanges to auto- Turkish sponsors .8.666 T. urkish glass retailers .2.000 matic switching, and substantially expanded long dis- glaverel, ............. 2.000 tance fcilitie. The econd pase wil increse the Glaverbel, S.A...........1.333 tance facilities. The second phase will increase the International Finance Corporation ... . 1.333 13.332 number of telephones to 405,000 by 1972. Loan Capital International Finance Corporation . . . 10.000 Turkish bond issue ............... 7.334 Deferred customs duties ........... 1.742 Bank loan .......... ..... 1.000 20.076 TOTAL . ........... 33.408 (IFC's commitment included a contingency commitment of $250,000) 27 YUGOSLAVIA $3,167,334 in Viking Kagit ve Seluloz, $2,000,000 in International Investment A.S., a $9.2 million paper Corporation for Yugoslavia, company. a $12.0 million investment IFC joined Turkish and Danish sponsors to establish company. a new Turkish paper manufacturing company. The mill is to have an annual capacity of 13,500 A pioneering type of investment company, which metric tons of quality wrapping paper and 5,000 tons assists private businesses to invest in joint industrial, of mechanical pulp. The project is expected to result agricultural and tourism and other ventures in Yugo- in netforeign exchange savings of approximately $1.6 slavia, was organized and sponsored by a group of million annually. 15 Yugoslav banks and IFC during the fiscal year. The IFC commitment consisted of equity, loan and Thirty-nine European, Japanese and United States contingency provision. financial institutions subscribed to the new com- Viking's sponsors in addition to IFC include two pany's shares. Turkish companies, Denmark's largest papercompany International Investment Corporation for Yugo- and a Danish institution for financing projects in slavia (IICY), capitalized at $12.0 million, was estab- developing countries. A Turkish industrial investment lished to bring together foreign private and Yugoslav and credit bank provided a loan. enterprises to facilitate Yugoslavia's access to modern The financial plan was as follows: technology and management methods. It will help to organize new enterprises, or expand existing ones, Share Capital (US$ million) including promotional and pilot operations; help Karteks Ticaret ve Sanayii, A.S., and identify and select projects; bring partners together; Otomobilcilik ve Ticaret, A.S ........ 1.507 and assist in financial planning and arrangements. De Forenede Papirfabrikker .......... 1.163 IICY will also invest its own capital and borrow Industrialization Fund for Developing funds to make loans to clients, provide advisory and Countries ..................... 1.033 consulting services, underwrite capital requirements, International Finance Corporation ..... 0.603 4.306 issue standbys and provide guarantees. Loan Capital The investment company can increase its oper- International Finance Corporation ..... 2.500 ating capital by borrowing and can revolve its funds Sinai Yatirim ve Kredi Bankasi A.O ... . 1.754 by selling participations in its own investments in Deferred customs duties ............ 0.687 4.941 the joint ventures it promotes. TOTAL ..9.247 IFC invested $2 million and the 15 Yugoslav finan- (IFCscommitmentalsoincludedacontingencycommitmentotapproximateiy$64,000.) cial institutions invested $3 million. Production at Cotton Company of Ethiopia. _ 1, Am - . . 1 The Yugoslav banks sponsoring IICY are: $8,000,000 in Zavodi Crvena Zastava/ Beogradska udruzena banka, Kreditna banka in hranilnica, Beograd Ljubljana Fiat S.p.A., for a $105.8 Investiciona banka, Sarajevo Kreditna banka, Sarajevo million expansion of Investiciona banka, Titograd Investiciono komercijalna Kreditna banka, Zagreb automobile production. banka, Split Kreditna banka, Zenica Jugoslavenska banka za Privredna banka u The World Bank and IFC committed $18 million spoljnu trgovinu, Beograd Beogradu, Beograd in loan and equity to a project to double produc- Jugoslavenska investiciona Privredna banka, Novi Sad tion of Yugoslavia's largest and only integrated auto- banka, Beograd Komercijalno investiciona Privredna banka, Zagreb mobile manufacturer. banka, Skopje Rijeka banka, Rijeka World Bank Group financing is part of a $105.8 million equivalent expansion to increase Zavodi Thirty-nine financial institutions in nine countries also Crvena Zastava (ZCZ) output from 96,000 to approx- became shareholders: imately 193,000 vehicles a year. The increased capa- city will create more than 8,000 additional jobs. Austria Japan In addition to the World Bank Group, financing Creditanstalt-Bankverein The Bank of Tokyo, Ltd. is being provided by Fiat S.p.A., of Italy; General- Osterreichische The Industrial Bank of export, a major Yugoslav importing and exporting Landerbank AG Japan, Limited c The Long-Term Credit Bank company; the Yugoslav investment bank, Jugosla- France of Japan, Limited venska investiciona banka (YIB); Yugoslav bank loans; Banque Francaise du Netherlands and suppliers' credits. Commerce Extdrieur Algemene Bank Nederland The World Bank provided a $10 million loan, made Banque Nationale de Paris N.V. through YIB. IFC is investing $8 million. The project Eureenne lIndustrielle Amsterdam-Rotterdam is a joint venture between Fiat and ZCZ, which has et Financiere Bank M &V e had cooperative arrangements with the Italian manu- Credit Lyonnais Nederlandsche Credietbank facturer for the last 15 years and produces vehicles SPcibas International N.V. of Fiat design under license. Nederlandsche Two United States financial institutions partici- Germany N V Slavenburg's Bank pated in IFC's commitment-Girard International Bank fuer Gemeinwirtschaft F. Van Lanschot Bankiers Investment Corporation, a subsidiary of Girard Trust Commerzbank AG Bank of Philadelphia, and Franklin International Deutsche Bank AG Switzerland Corporation, a subsidiary of Franklin National Bank, Dresdner Bank AG Swiss Bank Corporation ofeork. Westdeutsche Landesbank United Kingdom of New York. Girozentrale, for aUme ngo consortium of German Bank of London and The financial plan for the expansion of Zavodi Girozentralen South America, Limited Crvena Zastava was as follows: Barclays Bank, Limited Italy Lazard Brothers & Co., (uS$ million) Banca Commerciale Italiana Limited Equity Group United States Fiat S.p.A ........................ 12.0 Banca Nazionale del Lavoro Chase International Generalexport .................... 8.8 Banco di Napoli Investment Corporation International Finance Corporation ..... 8.0 Banco di Roma Girard International Jugoslavenska investiciona banka ...... 2.4 31.2 Credito Italiano Holding, S.A. Investment Corporation Efibanca, Ente Finanziaro Marine Midland Overseas Loan Capital Interbancario Corporation Suppliers' credits ...... ........... 12.5 Istituto Mobiliare Italiano Philadelphia International World Bank (through the Yugoslav Mediobanca Investment Corporation investment bank) ................ 10.0 Yugoslav bank loans ...... ......... 2.4 Jugoslavenska investiciona banka ...... 2.0 Privredna banka u Beogradu .... ..... 0.8 27.7 Cash Generation . . 46.9 TOTAL . .105.8 29 REGIONAL organizations have in the past joined in assisting bus- Latin America inesses in Latin America. The loan to ADELA was IFC's first commitment to $10,000,000 loan to ADELA Investment adevelopmentcompanyoperating on aregional scale. Company, S.A., for IFC's financial collaboration with regional invest- Company, S.A., for ment organizations such as ADELA is intended to expansion of ADELA's increase the amount of long-term capital available private enterprise for their investments, and, through their activities, investments in to make IFC funds available to a larger number and range of enterprises in developing countries than Latin America. would otherwise be possible. ADELA has offices in 11 Latin American countries. ADELA is an international privately financed com- Its operations have increased rapidly in the past few pany that gives financial, technical and promotional years. ADELA has approved long-term investments help to productive private enterprise in developing in more than 100 Latin American enterprises. nations in the Western Hemisphere. It is primarily an IFC's loan is intended to help ADELA continue investor and promoter of new enterprises. Its objec- expansion of its long-term investments in Latin tives and operations are similar to IFC's and the two American enterprises. IFC also made investments resulting from holdings acquired in previous years' commitments in the following countries: COLOMBIA NIGERIA * A $112,182 additional investment in Corporaci6n * A $3,878 investment in Arewa Textiles, Limited Financiera de Caldas, taking up IFC's share of a new in connection with the conversion into equity of stock offering to stockholders. debentures held by IFC. * The acceptance in share form of a $16,806 divi- dend from Enka de Colombia, S.A., augmenting TUNISIA the company's retained earnings to help finance * A second commitment, of $628,572, in Societe an expansion program. Nationale d'lnvestissement as IFC's pro rata sub- scription to a new offering planned for late in 1970 HONDURAS that will double the development finance com- * A second equity commitment of $37,500 in Com- pany's share capital and help it expand its invest- panfa Pino Celulosa de Centro America, S.A. as part ment program. of $500,000 in new financing to permit the com- pany to continue its studies and negotiations aimed at establishing a large-scale pulp, paper and lum- ber operation in the Honduras Olancho forest region. 30 Appendices Financial Statements Page A Balance Sheet ............................... .... . 32 B Statement of Income and Expenses .......... .. . .. . .. . .. . .. . 33 B Statement of Changes in Reserve Against Losses .................. . 33 C Statement of Operational Investments .......... . . .. . . .. . . .. . . 34 D Notes to Financial Statements ............ .. .. .. ... .. .. .. . 41 Opinion of Independent Auditor ......... . ............... . . 42 Other Appendices E Statement of Subscriptions to Capital Stock and Voting Power ........... . 43 F Governors and Alternates ................ ... ... ... ... .. . 44 G Directors and Alternates and Their Voting Power ....... . . . . . . . . . . . . 46 H Officers and Department Directors ..................... . Inside Cover 31 Balance Sheet Appendix A June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix D 1970 1969 Assets DUE FROM BANKS .......... .. . .. .. . .. . .. .. . .. . .. . $ 508,113 $ 715,967 INVESTMENTS Obligations of United States Government and its instrumentalities (At cost or amortized cost; face amount Nil-1970, $27,000,000-1969) ............................ . $ - 26,085,900 Time deposits maturing within six months-United States dollars ..... . . 10,000,000 4,000,000 Accrued interest .......... .. . .. .. . .. . .. .. . .. .. . . 51,587 484,279 10,051,587 30,570,179 EFFECTIVE LOANS AND EQUITY INVESTMENTS HELD BY CORPORATION (At cost) (See Appendix C) (Including undisbursed balance $41,997,309-1970, $33,500,575-1969) Loans ..................................... . $125,634,113 93,014,013 Equity .............. .. ... .. ... .. ... .. ... .. . 83,376,758 59,677,835 209,010,871 152,691,848 ACCRUED INCOME ON LOANS AND UNDERWRITING COMMITMENTS-Note B . . 2,581,654 1,571,340 RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ................................ . 182,500,000 100,000,000 RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS AND EQUITY INVESTMENTS AGREED TO BE SOLD-Note B (Including undisbursed balance $7,058,576-1970, $22,996,218-1969) ......... . . .. . . . .. . . . .. . . . .. . 10,747,249 26,783,146 OTHER ASSETS ........... .. .. .. .. . . ............ . 271,193 176,723 TOTAL ............. .. .. ... ............... . $415,670,667 $312,509,203 Liabilities, Reserve and Capital LIABILITIES Accounts payable and other liabilities ....... . . . . . . . . . . . . . . $ 849,446 $ 822,453 Undisbursed balance of effective loans and equity investment agreements (See Appendix C) Held by Corporation ............................ . $ 41,997,309 33,500,575 Agreed to be sold ......... .. . .. . . .. . .. . .. . . .. . . 7,058,576 22,996,218 49,055,885 56,496,793 Loan from International Bank for Reconstruction and Development Unwithdrawn ........... .. .. .. . .. .. .. .. . .. .. . $182,500,000 100,000,000 Withdrawn and outstanding ........ . . . . . . . . . . . . . . . . . 17,500,000 _ 200,000,000 100,000,000 RESERVE AGAINST LOSSES (See Appendix B)-Note C ... ........... . 58,811,336 48,614,957 CAPITAL Capital stock Authorized 110,000 shares of $1,000 par value each Subscribed 106,954 shares-1970, 106,540-1969 ...... . . . . . . . 106,954,000 106,540,000 Payment on account of pending subscription ...... . . . . . . . . . . - 35,000 TOTAL ............... ... ... ... ... ... ... .. . $415,670,667 $312,509,203 32 Statement of Income and Expenses Appendix B For the Fiscal Years Ended June 30, 1970 and June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D July 1-June 30 1969/70 1968/69 Income Income from obligations of United States Government and its instrumentalities and time deposits ....... . . . . . . . . . . . . . . . . . . . . . $ 1,228,935 $ 1,864,865 Income from loans, equity investments and standby and underwriting commitments: Fixed interest .......................................... . 6,243,652 4,780,733 Additional interest ........... . .. . .. . .. . .. . .. .. . .. . .. . .. . . . 120,772 370,641 Commitment charges .......... .. . .. . .. . . .. . .. .. . . .. . .. . .. . . 671,668 410,212 Dividends ............................................ . 6,776,549 4,394,139 Commissions ............ .. .. .. .. . .. .. .. .. .. .. .. .. .. .. . . 335,686 154,287 Other income ............................................ . 11,110 5,394 GROSS INCOME .......... .. .. . .. . .. . .. . .. . .. .. . .. . .. . . . $15,388,372 $11,980,271 Expenses Administrative expenses: Personal services ........... .. . .. .. . .. .. . .. .. .. . .. .. . .. . . . $ 3,068,813 $ 2,408,904 Contributions to staff benefits ......... . . . . . . . . . . . . . .. . . . . . . . . . . 480,994 369,664 Fees and compensation ..................................... . 256,078 120,669 Representation ........... .. .. .. . .. .. . .. .. .. .. . .. .. .. . .. . 40,845 42,313 Travel .............................................. . 712,424 619,441 Supplies and material .......... . . .. . .. . . .. . . .. . . .. . .. . . . .. . 34,250 33,335 Office occupancy ........... .. . .. .. . .. .. . .. .. .. . .. .. . .. .. . 342,334 222,591 Communication services ......... .. . . . .. . . . . .. . . .. . . . .. . . . .. . 134,834 124,242 Furniture and equipment .......... . . . .. . . .. . . . .. . .. . . . .. . . .. . 131,000 79,770 Books and library services ......... . .. . . . . .. . . . . .. . . . . .. . . . . . . 31,000 37,238 Printing ............................................. . 97,334 61,555 Insurance ............................................ . 19,000 17,532 Other expenses ........... .. .. .. . .. .. . .. .. .. .. . .. .. .. . .. . 11,382 7,562 Total administrative expenses ........ . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,360,288 $ 4,144,816 Charges on borrowings ........... . .. . .. . .. . .. . .. .. . .. . .. . .. . . . 840,002 375,000 GROSS EXPENSES .......... .. . .. . .. . .. . . .. .. . . .. . .. . .. . . $ 6,200,290 $ 4,519,816 Net Income-Allocated to Reserve Against Losses-Note C ...... . . . . . . . . . . . . . . . . $ 9,188,082 $ 7,460,455 Statement of Changes in Reserve Against Losses For the Fiscal Years Ended June 30, 1970 and June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D July 1-June 30 1969/70 1968/69 Balance Beginning of Period ......... . . . . . . . .. . . . . . . . .. . . . . . . . . $48,614,957 $40,936,366 Additions and Deductions Net income-Note C ........... .. . .. .. . .. .. . .. .. .. . .. . .. .. . . . 9,188,082 7,460,455 Net gains on sales and other dispositions of loans and equity investments ..... . . . . . . . . 1,008,297 229,296 Net other losses ............ .. .. .. .. . .. .. .. .. .. .. .. .. .. .. . . - (11,160) Balance End of Period .......... .. . .. . .. . . .. . .. .. . .. . . .. . .. . . $58,811,336 $48,614,957 33 Statement of Operational Investments Appendix C June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Principal Original repayments Investmenfts held by the Corporation commitments to the Loans and Cancellations, Fiscal years net of Corporation equity sold terminations Total loans COUNTRY in which exchange and or agreed to and and equity and Obligor Type of business commitments were made adjustments (I) redemptions be sold (2) (3) write-offs Loans Equity (at cost) Argentina Acindar Industria Argentina de Aceros, S.A ........ . Steel products 1960 $ 3,660,000 $ 2,525,000 $ 725,000 $ - $ 410,000 $ - $ 410,000 *Papelera Rio Parana, S.A .P.u.l. . . P uip and paper 1960 3,000,000 - - 3,000,000 - - Fibrica Argentina de Engranajes, S.A.I.C . ...... . Automotive transmissions 1961 1,500,000 - 275,000 - 1,225,000 - 1,225,000 and gears VPasa, Petroquimica Argentina, S.A.I.C ........... . Petrochemicals 1962 3,050,000 - 305,000 2,745,000 - - Celulosa Argentina, S.A ... . .... .. . ...... Pulp and paper 1965 2,500,000 820,000 250,000 - 1,430,000 - 1,430,000 Daimine Siderca, S.A .......... . Steel products 1969 3,000,000 - 2,250,000 - 750,000 - 750,000 Editorial Codex Sociedad Anonima ............ . Printing and publishing 1969 7,000.000 - 2,883,000 - 2,517,000 1,600,000 4,117,000 TOTAL 23,710,000 3,345,000 6,688,000 5,745,000 6,332,000 1,600,000 7,932,000 Australia *Duncan's Holdings, Ltd ................. . Lumber and mill products 1958 660,000 660,000 - - - - - *Rubbertex (Australia) Proprietary, Ltd.(4) ..... . . . . . Rubber products 1959, 1960 315,000 42,750 272,250 TOTAL 975,000 702,750 272,250 - - - - Brazil *Siemens do Brasil Cia. de Eletricidade . . Electrical equipment 1957 2,000,000 140,000 860,000 1,000,000 "Olinkraft, S.A. Celulose e Papel ....... . . . . . . . Pulp and paper 1958 1,200,000 - 957,000 243,000 - - D.L.R. Plasticos do Brasil, S.A . ......... . Automotive parts 1958 450,000 250,000 - - 200,000 - 200,000 *Willys.Overland do Brasil, S.A. Ind6stria e Comercio . . Motor vehicles 1958 2,450,000 2,450,000 - - - - *Companhia Mineira de Cimento Portland, S.A . ..... . Cement 1959 1,200,000 - 1,200,000 - Champion Celulose, S.A . .......... . Pulp 1959 4,000,000 825,000 3,175,000 - - - Acos Villares, S.A.(4) ............. . Steel 1966, 1968 4,959,026 728,000 - - 3,272,000 959,026 4,231,026 Papel e Celulose Catarinense, S.A.Q4) .... ...... . . Pulp and paper 1966, 1969 7,191,881 11,250 2,093,150 75,023 1,879,600 3,132,858 5,012,458 Ultrafertil, S.A.-lnd6stria e Comercio de Fertilizantes . . . Fertilizers 1967 10,658,000 - 314,727 858 7,397,000 2,945,415 10,342,415 Petroquimica Uniao, S.A . ................ . Petrochemicals 1969 8,380,000 - 2,363,000 - 3,875,000 2,142,000 6,017,000 Poliolefinas, S.A. Industria e Comercio . ......... . Petrochemicals 1970 8,377,100(5) - 1,075,000 - 5,160,000 2,142,100 7,302,100 TOTAL 50,866,007 4,404,250 12,037,877 1,318,881 21,783,600 11,321,399 33,104,999 Ceylon Pearl Textile Mills, Ltd .................. . Textiles 1970 3,250,000(5) - 1,300,000 - 1,500,000 450,000 1,950,000 Chile Empresa Minera de Mantos Blancos, S.A.(4) ..... . . . Copper mining and smelting 1958, 1959, 1966 4,337,500 867,339 2,232,661 - - 1,237,500 1,237,500 Fideos y Alimentos Carozzi, S.A.(4l ...... . ...... Food products 1959, 1965 1,653,846 1,399,560 - - 100,440 153,846 254,286 Cementos Bio-Bio, S.A) ....... . . . . . . . . . . Cement 1960, 1961, 1965 1,300,000 960,000 100,000 - 240,000 - 240,000 Compahia Manufacturera de Papeles y Cartones, S.A. . . . Pulp and paper 1963 3,000,000 1,439,000 900,000 - 661,000 - 661,000 Minera Sagasca, S.A ................... . Copper mining and leaching 1970 10,900,000 - 200,000 - 10,250,000 450,000 10,700,000 TOTAL 21,191,346 4,665,899 3,432,661 - 11,251,440 1,841,346 13,092,786 China Asia Cement Corporation ....... . . . . . . . . . . Cement 1970 4,218,750(5) - 100,000 - 2,900,000 1,218,750 4,118,750 Oriental Chemical Fiber Corporation ...... . . . . . . Polyester fiber production 1970 3,000,000(5) - - - 3,000,000 - 3,000,000 TOTAL 7,218,750 - 100,000 - 5,900,000 1,218,750 7,118,750 Colombia *Laminas del Caribe, Ltda ................. . Fibreboard 1959 500,000 500,000 - - - - - Industrias Alimenticias Noel, S.A.(4) ..... . . . . . . . Food products 1960, 1965 2,052,065 1,094,660 427,436 - 480,320 49,649 529,969 *Envases Colombianos, S.A ................ . Metal cans 1961 700,000 203,571 96,429 400,000 - - - Morfeo-Productos Para el Hogar, S.A.(4) ..... . . . . . Home furniture 1961, 1968 175,950 84,000 9,627 - - 82,323 82,323 *Electromanufacturas, S.A ................ . Electrical equipment 1961 500,000 - 210,375 289,625 - - - Corporaci6n Financiera Colombiana14) ........... . Development financing 1962 2,023,730 - - 514 - 2,023,216 2,023,216 Corporaci6n Financiera Nacional(4) ...... . . . . . . . Development financing 1962, 1963 2,042,000 - 843,807 34 - 1,198,159 1,198,159 Companfa Colombiana de Tejidos, S.A.M4 ..... . . . . . Textiles 1963, 1967, 1968, 1969 2,126,415 253,598 1,809,155 - - 63,662 63,662 Corporacidn Financiera de Caldas(4) ..... . . . . . . . Development financing 1964 701,403 - - - - 701,403 701,403 1970 112,182(5N - - - - 112,182 112,182 Forjas de Colombia, S.A.(M) ...... . . . . . . . . . . Steel forging 1964, 1968 1,267,502 - 175,561 423 - 1,091,518 1,091,518 *Almacenes Generales de Dep6sito Santa F6, SA. "Almaviva" Warehousing 1966 1,000,000 623,400 376,600 - - - - Industria Ganadera Colombiana, S.A. ..... . . . . . . Livestock 1966 1,580,542 242,800 - 42,800 714,400 580,542 1,294,942 Enka de Colombia, S.A.M ....... . . . . . . . . . . Textiles 1967, 1970 2,681,953 - 140,000 - 860,000 1,681,953 2,541,953 Compafita de Desarrollo de Hoteles y Turismo, Ltda.-Hoturismo ...... . . . . . . . . . Tourism 1969 5,935 - - - - 5,935 5,935 Corporaci6n Financiera del Norte ...... . . . . . . . Development financing 1969 431,282 - - - - 431,282 431,282 Corporaci6n Financiera del Valle ............. . Development financing 1969 431,282 - - - - 431,282 431,282 *Promotora de Hoteles de Turismo Medellin, S.A ...... . Tourism 1970 338,421 - - 338,421 - - - Pro-Hoteles, S.A ..................... . Tourism 1970 1,045,425(5) - - - 800,000 245,425 1,045,425 TOTAL 19,716,087 3,002,029 4,088,990 1,071,817 2,854,720 8,698,531 11,553,251 Congo, Democratic Republic of Societe Congolaise de Financement du Developpement . . . Development financing 1970 752,758 - - - - 752,758 752,758 Costa Rica Productos de Concreto, S.A.M1' .C..... . . . . . . . . . Goncrete products 1963, 1966 589,552 185,500 313,219 - 90,833 - 90,833 Ecuador La Internacional, S.A .................. . Textiles 1966 1,963,309 135,500 758,229 - 872,500 197,080 1,069,580 Ecuatoriana de Desarrollo, S.A. (Compafnia Financiera) . . . Development financing 1969 251,371 - - - - 251,371 251,371 TOTAL 2,214,680 135,500 758,229 - 872,500 448,451 1,320,951 El Salvador *Industrias Textiles, S.A .................. . Textiles 1959 140,000 140,000 - - - - - Hoteles de Centro America Sociedad Anonima .... . Tourism 1969 933,400(5 -) - - 600,000 333,400 933,400 TOTAL 1,073,400 140,000 - - 600,000 333,400 933,400 Ethiopia Cotton Company of Ethiopia, S.C.M ..... . . . . . . . Textiles 1965 2,507,557 7,000 1,031,487 - 705,000 764,070 1,469,070 1970 618,000(5) - 281,000 - 225,000 112,000 337,000 Ethiopian Pulp and Paper, S.C .............. . Pulp and paper 1966 1,908,501 - 699,695 - - 1,208,806 1,208,806 H.V.A.-Metahara, S.C ............... . Sugar 1968 9,044,698 - 1,720,340 - 4,870,000 2,454,358 7,324,358 TOTAL 14,078,756 7,000 3,732,522 - 5,800,000 4,539,234 10,339,234 Finland *Oy Kutomotuote Ab, Tricol Oy, Toli Oy ..... . . . . . . Textiles 1960 156,000 48,000 108,000 - - - - *Rauma-Repola Oy ..................... . Pulp, lumber, machinery 1961 1,875,000 585,000 1,290,000 - - - - and shipbuilding Teollistamisrahasto Oy-Industrialization Fund of Finland, Ltd .................... . Development financing 1964 317,288 - 158,009 - - 159,279 159,279 Huhtamaki-yhtyma Oy ....... . . . . . . . . . .. . Pharmaceuticals 1965 799,357 104,000 624,514 - - 70,843 70,843 TOTAL 3,147,645 737,000 2,180,523 - - 230,122 230,122 1.11 -Indicates investn7ents which have been fully cancelled, terminated, wrItten off, sold. redeemed or repaid. (continued) Statement of Operational Investments (continued) Appendix C June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Principal Original repayments Investments held by the Corporation commitments to the Loans and Cancellations, Fiscal years net ot Corporation equity soad terminations Total loans COUNTRY in which exchange and or agreed to and and equity and Obligor Type of business commitments were made adjustments (t) redemptions be sold (2) (3) write-offs Loans Equity (at cost) Greece tAevol Industrial Company of Organic Fertilizers, S.A ..... . Fertilizers 1962 $ 600,000 $ 120,000 $ 480,000 $ - $ - $ - $ - "Titan" Cement Company, S.A.(4) ...... . . . . . . . . Cement 1965, 1966 1,525,920 - 975,836 - 275,000 275,084 550,084 National Investment Bank for Industrial Development, S.A. . . Development financing 1966 719,082 - - - - 719,082 719,082 General Cement Company, S.A ............... . Cement 1966 3,500,000 - 1,400,000 - 2,100,000 - 2,100,000 Aluminium de Grece, Soci6te Anonyme Industrielle et Commerciale ........ . . . . . .. . . . . . . Aluminum production 1970 8,600,000 - 1,481,250 - 2,612,500 4,506,250 7,118,750 TOTAL 14,945,002 120,000 4,337,086 - 4,987,500 5,500,416 10,487,916 Guatemala *Industria Harinera Guatemalteca, S.A ............ . Flour milling 1959 200,000 66,000 134,000 - - - - Honduras Empresa de Curtidos Centro Americana, S.A.(4) .... . . . . Leather tanning 1964, 1966 377,500 77,550 100,750 - 132,450 66,750 199,200 Companita Pino Celulosa de Centro America, S.A.14t .... . . Pulp and paper 1969, 1970 75,000 - - - - 75,000 75,000 TOTAL 452,500 77,550 100,750 - 132,450 141,750 274,200 India *Republic Forge Company, Ltd ................ . Steel forging plant 1959 1,500,000 - - 1,500,000 - - - tKirloskar Oil Engines, Ltd ................. . Diesel engines 1959 850,000 - - 850,000 - - - Assam Sillimanite, Ltd ................... . Refractory bricks 1960 1,365,000 580,000 - 478,724 306,276 - 306,276 K.S.B. Pumps, Ltd ..................... . Pumps, compressors 1961 210,000 189,000 - - 21,000 - 21,000 and valves Precision Bearings India, Ltd.(4) ...... . . . . . . . . . Bearings 1963, 1966 1,030,197 26,200 260,000 - 365,050 378,947 743,997 Fort Gloster Industries, Ltd ................. . Transmission cables 1964 1,211,047 355,250 151,380 - 355,250 349,167 704,417 Mahindra Ugine Steel Company, Ltd ............ . Steel products 1964 3,296,607 330,000 142,339 124,166 1,870,275 829,827 2,700,102 Lakshmi Machine Works, Ltd ................ . Textile machinery 1964 1,312,434 214,080 141,743 - 642,240 314,371 956,611 Jayshree Chemicals, Ltd .................. . Chemicals 1967 1,154,816 210,000 - 228,912 611,088 104,816 715,904 Indian Explosives, Ltd ................... . Fertilizers 1967 11,462,437 - 1,194,673 3,010,000 4,661,600 2,596,164 7,257,764 Zuari Agro Chemicals, Ltd.(4) ................ Fertilizers 1969 15,940,000(5) - 950,000 - 11,250,000 3,740,000 14,990,000 1970 3,000,000(5) - 3,000,000 - - - - TOTAL 42,332,538 1,904,530 5,840,135 6,191,802 20,082,779 8,313,292 28,396,071 Iran *Sherkate Sahami Kahkashan ................ Ceramic tiles 1959 300,000 300,000 - - - - - Sherkate Sahami Navard va Luleh Ahwaz ..... . . . . . Steel products 1969 3,874,880 - 1,324,134 - 1,835,000 715,746 2,550,746 TOTAL 4,174,880 300,000 1,324,134 - 1,835,000 715,746 2,550,746 Italy *Magrini Meridionale, S.p.A ................. . Electrical equipment 1960 960,000 - 960,000 - - - - Ivory Coast Banque Ivoirienne de Developpement Industriel, S.A ..... . Development financing 1965 204,081 - - - - 204,081 204,081 Jamaica *Jamaica Pre-Mix, Ltd .................... . Pre-mixed concrete 1961 224,000 224,000 - - - - Pegasus Hotels of Jamaica, Ltd ............... . Tourism 1969 2,913,000 - 954,499 - 1,280,000 678,501 1,958,501 TOTAL 3,137,000 224,000 954,499 - 1,280,000 678,501 1,958,501 Kenya Kenya Hotel Properties, Ltd ................ . Tourism 1967 3,073,186 - 962,180 - 1,550,000 561,006 2,111,006 Panafrican Paper Mills (E.A.), Ltd ... . .......... Pulp and paper 1970 14,651,799(5) - 3,204,000 - 7,856,000 3,591,799 11,447,799 TOTAL 17,724,985 - 4,166,180 - 9,406,000 4,152,805 13,558,805 Korea Korea Development Finance Corporation ..... . . . . . . Development financing 1968 702,043 - - - - 702,043 702,043 Honam Silk Industry Company ...... . . . . . . . . . Textiles . 1969 1,707,500(') - - - 1,400,000 307,500 1,707,500 Atlas Paper Company, Ltd ................. . Pulp and paper 1970 5,000,000(5) - 1,500,000 - 3,150,000 350,000 3,500000 TOTAL 7,409,543 - 1,500,000 - 4,550,000 1,359,543 5,909,543 Liberia Liberian Bank for Industrial Development and Investment . . Development financing 1966 250,000 - 1,510 - - 248,490 248,490 Malaysia Malaysian Industrial Development Finance, Berhad .... . . Development financing 1964 1,307,500 - 490,000 - - 817,500 817,500 Tasek Cement, Berhad ......... . . . . . . . . . . Cement 1966 1,559,381 134,375 787,506 - 637,500 - 637,500 Malayawata Steel, Berhad(4) ....... . . . . . . . . . . Steel 1968, 1969 3,693,489 - 1,236,002 - 1,251,000 1,206,487 2,457,487 IndiaMalaysia Textiles, Berhad ...... . . . . . . . . . Textiles 1970 1,499,900(5) - - - 1,250,000 249,900 1,499,900 TOTAL 8,060,270 134,375 2,513,508 - 3,138,500 2,273,887 5,412,387 Mauritania Societe Miniere de Mauritanie ........ . Copper mining and treatment 1968 20,006,515 - 9,558,343 - 9,724,263 723,909 10,448,172 Mexico *Industrias Perfect Circle, S.A.04) .... . . . . . . . . . . Industrial equipment 1958, 1959 800,000 600,000 - 200,000 - - *Bristol de Mexico, S.A ................... . Aircraft engine overhaul 1958 520,000 520,000 - - *Acero Solar, S.A ...................... . Twist drills 1961 280,000 - 280,000 - - - - Compafiia Fundidora de Fierro y Acero de Monterrey, S.A.(4) . Steel 1962, 1965, 1966, 1968 23,741,411 - 20,698,607 324,321 1,298,800 1,419,683 2,718,483 Tubos de Acero de Mexico, S.A. ....... . . . . . . . Seamless steel pipes 1963 1,000,000 29,000 909,000 - 62,000 - 62,000 *Quimica del Rey, S.A .................... . Sodium sulphate 1963 750,000 73,998 676,002 - - - - Industria del Hierro, S.A.(4) ....... . . . . . . . . . . Construction equipment 1964,1966 1,961,569 - 880,704 - - 1,080,865 1,080,865 Minera del Norte, S.A ................... . Iron ore mining 1970 1,500,000 - - - 1,500,000 - 1,500,000 TOTAL 30,552,980 1,222,998 23,444,313 524,321 2,860,800 2,500,548 5,361,348 Morocco Banque Nationale pour le Developpement Economique . . . . Development financing 1963 1,495,774 510,687 - - - 985,087 985,087 Compaifa Industrial del Lukus, S.A ............. . Food processing and canning 1966 1,388,486 - 420,000 - 470,000 498,486 968,486 TOTAL 2,884,260 510,687 420,000 - 470,000 1,483,573 1,953,573 Nicaragua Textiles Fabricato de Nicaragua, S.A. ............ Textiles 1968 2,071,428 - 928,571 - 500,000 642,857 1,142,857 Nigeria Nigerian Industrial Development Bank, Ltd ......... . Development financing 1964 1,400,000 - 484 - - 1,399,516 1,399,516 Arewa Textiles, Ltd.(4) ....... . . . . . . . . . . . . . Textiles 1964, 1967, 1970 1,574,909 1,680 728,036 250,000 48,480 534,570 583,050 12,143 (6) TOTAL 2,974,909 1,680 728,520 262,143 48,480 1,934,086 1,982,566 Pakistan *Steel Corporation of Pakistan, Ltd ............. . Rolled steel products 1958 630,000 630,000 - - *Adamjee Industries, Ltd .................. . Cotton textiles 1959 750,000 749,705 - 295 - - - Ismail Cement Industries, Ltd.(4) . ..... . . . . . . . . Cement 1962, 1965 5,668,408 1,259,976 489,079 153,609 3,348,416 417,328 3,765,744 Pakistan Industrial Credit and Investment Corporation, Ltd.(4) ....... . . . . .. . .. .. . . Development financing 1963,1969 486,246 - 36,846 - - 449,400 449,400 Crescent Jute Products, Ltd ................. . Textiles 1965 1,950,000 487,200 121,800 13,621 1,327,379 - 1,327,379 Packages, Ltd ....................... . Paper products 1965 3,151,662 - 1,323,718 - 1,223,000 604,944 1,827,944 Pakistan Paper Corporation, Ltd. ...... . . . . . . . . Paper 1967 5,219,088 1,000 327,457 - 2,871,543 2,019,088 4,890,631 Dawood Hercules Chemicals, Ltd .............. . Fertilizers 1969 3,923,255 - - - 1,000,000 2,923,255 3,923,255 *Karnaphuli Paper Mills, Ltd ................ . Pulp and paper 1969 6,230,001 - - 6,230,001 - - - TOTAL 28,008,660 3,127,881 2,298,900 6,397,526 9,770,338 6,414,015 16,184,353 *Indicates investments which have been fully cancelled, terminated, written off, sold, redeemed or repaid. (continued) Statement of Operational Investments (continued) Appendix C June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Principal Original repayments Investments held by the Corporation commitments to the Loans and Cancellationsn Fiscal years net On Corporation equity sDId terminations Total loans COUNTRY in which exchange and or agreed to and and eouity and Obligor Type of business commitments were made adjustments (t) redemptions be sold (2) (3) write-otfs Loans Equity (at cost) Peru *Industrias Reunidas, S.A .................. . Home appliances 1960 $ 250,000 $ 250,000 $ - $ - $ - $ - *Luren, S.A. and Ladrillos Calcareos, S.A ........... . Bricks 1960 280,000 280,000 *Durisol del Peru, S.A .................... . Building materials 1960 300,000 - - 300,000(l) Fertilizantes Sinteticos, S.A.(0) ...... . . . . . . . . . . Fertilizers 1960, 1962 4,083,290 1,503,250 2,264,000 - 316,040 - 316,040 Cemento Andino, SAt.t ..... . . . . . . . . . . . . . Cement 1962, 1968 2,461,500 1,221,125 110,000 - 1,040,375 90,000 1,130,375 Compahia de Cemento Pacasmayo, S.A.(4) ..... . . . . . Cement 1964, 1967 1,605,151 48,600 1,357,200 - 29,351 170,000 199,351 TOTAL 8,979,941 3,302,975 3,731,200 300,000 1,385,766 260,000 1,645,766 Philippines *Private Development Corporation of the Philippines .... . Development financing 1963 4,359,063 - 4,359,063 - - - - Manila Electric Company. .......... . . Electric power 1967 8,000,000 70,750 2,397,000 - 5,532,250 - 5,532,250 Meralco Securities Corporation ...... . . . . . . . . . Electric power 1967 4,000,000 - 360,977 - - 3,639,023 3,639,023 Philippine Long Distance Telephone Company .... . . . . Utilities 1970 4,500,000 - - - 4,500,000 - 4,500,000 Mariwasa Manufacturing, Inc ................ . Floor and wall tiles 1970 1,095,450 - 547,726 - 384,500 163,224 547,724 Paper Industries Corporation of the Philippines .... . . . Pulp and paper 1970 2,214,284 - 1,396,648 410,778 - 406,858 406,858 TOTAL 24,168,797 70,750 9,061,414 410,778 10,416,750 4,209,105 14,625,855 Senegal Societe Industrielle d'Engrais au Senegal .......... Fertilizer 1967 3,459,766 - 755,000 - 1,695,000 1,009,766 2,704,766 Spain FAbrica Espatola Magnetos, S.A.(4) ............. . Automotive electrical 1962, 1965, 1967 3,362,288 397,000 1,921,789 - 468,000 575,499 1,043,499 equipment Banco del Desarrollo Econ6mico Espahol, S.A.(4) .. . .. .. Development financing 1963, 1965 585,351 - - - - 585,351 585,351 TOTAL 3,947,639 397,000 1,921,789 - 468,000 1,160,850 1,628,850 Sudan Khartoum Spinning and Weaving Company, Ltd ....... . Textiles 1964 688,893 85,900 225,846 12,110(6) 92,400 272,637 365,037 Tanzania *Kilombero Sugar Company, Ltd.(4) ............. Sugar 1960, 1964 4,657,485 149,040 3,914,400 292,560 - - - 301,485(6) Thailand *Concrete Products and Aggregate Company, Ltd ....... . Concrete products 1959 300,000 - 300,000 - - Industrial Finance Corporation of Thailand ..... . . . . . Development financing 1964 193,108 - - - - 193,108 193,108 Siam Cement Group Companies ...... . . . . . . . . . Cement 1969 22,081,569 - 14,874,089 - 4,830,000 2,377,480 7,207,480 TOTAL 22,574,677 - 15,174,089 - 4,830,000 2,570,588 7,400,588 Tunisia NPK-Engrais, SA.T .................... . Fertilizers 1963 3,500,000 526,400 1,157,173 11,498 656,000 1,148,929 1,804,929 Societe Nationale d'investissement(4) ..... . . . . . . . Development financing 1966 575,926 - - - - 575,926 575,926 1970 628,572 (5) - - - - 628,572 628,572 Compagnie Financiere et Touristique, S.A .......... . Tourism financing 1969 9,904,944 - 1,109,290 - 6,890,710 1,904,944 8,795,654 TOTAL 14,609,442 526,400 2,266,463 11,498 7,546,710 4,258,371 11,805,081 Turkey Turkiye Sinai Kalkinma Bankasi, A.S..4) .... . . . . . . Development financing 1964, 1967, 1969 1,671,389 366,828 - - 1,304,561 1,304,561 Sentetik Iplik Fabrikalari, A.S.0) ...... . . . . . . . . . Textiles 1966, 1969 3,297,222 225,000 - - 2,175,000 897,222 3,072,222 Viking Kagit ve Seluloz, A.S. ...... . . . . . . . . . . Pulp, paper and paper products 1970 3,167,334 - - - 2,500,000 667,334 3,167,334 Anadolu Cam Sanayii, A.S ................. . Glass and glass products 1970 11,583,330'5) - 4,000,000 - 6,000,000 1,583,330 7,583,330 TOTAL 19,719,275 225,000 4,366,828 - 10,675,000 4,452,447 15,127,447 Uganda Mulco Textiles, Ltd. .................... Textiles 1965 3,508,436 511,691 1,292,200 70,000 935,520 471,429 1,406,949 227,596 (6) Venezuela *Sider6rgica Venezolana "Sivensa", S.A.M ..... . . . Steel products 1960, 1964 3,140,529 1,087,500 2,053,029 - - - - *Diablitos Venezolanos, C.A ................. . Food products 1961 500,000 - 176,000 324,000 - - - C.A. Venezolana de Desarrollo (Sociedad Financiera)(4) . . . Development financing 1964, 1968 8,836,183 19,612 1,306,350 - 6,285,388 1,224,833 7,510,221 Dominguez y Cia.-Caracas, S.A. ...... . . . . . . . . Tin cans 1966 514,541 - 84,341 - - 430,200 430,200 Protinal, C.A ..... ................. Animal feed 1969 2,079,178 - 1,455,802 - 623,376 - 623,376 TOTAL 15,070,431 1,107,112 5,075,522 324,000 6,908,764 1,655,033 8,563,797 Yugoslavia International Investment Corporation for Yugoslavia .... . Development financing 1970 2,000,000 - - - - 2,000,000 2,000,000 Zavodi Crvena Zastava/Fiat S.p.A .............. . Automobile manufacturer 1970 8,000,000 - 600,000 - - 7,400,000 7,400,000 TOTAL 10,000,000 - 600,000 - - 9,400,000 9,400,000 Regional Investment Latin America ADELA Investment Company, S.A. ............ Development financing 1970 10,000,000(5) - - - 10,000,000 - 10,000,000 GRAND TOTAL $476,518,314 $31,390,497 $142,499,471 $23,461,517 $180,725,113 $98,441,716 $279,166,829 Less: INVESTMENTS NOT EFFECTIVE 85,565,958 - 15,410,000 - 55,091,000 15,064,958 70,155,958 TOTAL EFFECTIVE INVESTMENTS $390,952,356 $31,390,497 $127,089,471 $23,461,517 $125,634,113 $83,376,758 $209,010,871(a) 'Indicates investments which have been fully cancelled, terminated, written oh, sold, redeemed or repaid. Notes: SUMMARY (1) Includes standby and underwriting commitments. Effective investments held by the Corporation .$209,010,871 (2) Includes acquisitions by other investors of securities covered by standby and Investments not effective (Including $15,410,000 underwriting commitments of $27,542,886. agreed to be sold) .85,565,958 (3) Amounts sold represent respective book values and any profits or losses on these Principal repayments to the Corporation and redemptions . . . 31,390,497 sales have been entered directly to the reserve against losses. To date such Effective loans and equity investments sold or agreed profits have totalled $4,953,273 and losses $438,161 resulting in net profits to be sold .127,089,471 of $4,515,112. Cancellations and terminations .22,608,183 (4) The Corporation has made more than one commitment to this company. Write-offs .853,334 (5) Commitment has been signed but does not become effective (i.e. funds may not Gross commitments made ................... $476,518,314 be withdrawn) until certain legal formalities have been completed and other conditions fulfilled. (6) Write-off-Currency devaluation $553,334. (7) Write-off-Investment $300,000. (8) Includes undisbursed balance of $41,997,309. (continued) Statement of Operational Investments (continued) Appendix C June 30, 1970 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Summary of Currencies in Which Effective Loans and Equity Investments Held by the Corporation are Denominated Loans aod equity Rates of exchange investments for amounts (1) Currency Disbursed Undisbursed Disbursed Undisbursed Argentine pesos ........ . . . .. . . . . . . . $ 1,600,000 $ - 3.500 - Brazilian cruzeiros ........ . ........ . . 7,888,261 1,291,038 3.250 4.530 CFA francs ......... ............ . 1,737,756 200,000 247.446 277.710 Chilean escudos ........ . . ........ . . 153,846 450,000 2.340 - Colombian pesos ................... . 7,655,945 684,979 12.606 18.470 Congo zaires ..................... . 377,758 375,000 0.496 0.500 Ecuadoran sucres ........ . ........ . . 448,451 - 21.296 - Ethiopian dollars ................... . 3,999,234 428,000 2.481 2.500 Finnish markkaa ........ . .......... . 230,122 - 3.216 - Greek drachmas . . . . . . . . . . . . . . . . . . . . 994,166 - 31.483 - Honduran lempiras .................. . 123,000 18,750 2.000 2.000 Indian rupees ........ . ........... . 4,573,292 - 6.705 Iranian rials ......... . ........... . 636,538 79,208 75.408 75.750 Jamaican dollars ................... . 282,751 395,750 0.833 0.833 Kenya shillings ........ . .......... . 561,006 - 7.156 - Korean won ......... . ........... . 702,043 - 274.200 - Malaysian dollars ........ . ....... . . . 2,023,987 - 3.064 - Mexican pesos .................... . 2,500,548 - 12.490 - Moroccan dirhams ........ . ........ . . 1,383,573 100,000 5.016 5.060 Nicaraguan cordobas ................. . 642,857 - 7.000 - Nigerian pounds ................... . 1,934,086 - 0.357 - Pakistan rupees ........ . ......... . . 4,954,514 1,459,501 4.737 4.762 Philippine pesos ................... . 3,986,252 222,853 4.101 6.170 Pounds sterling ........ . ......... . . 1,017,600(2) - 0.417 - Spanish pesetas ........ . .......... . 1,160,850 - 60.591 - Sudanese pounds ........ . ........ . . 272,637 - 0.348 - Thai baht ......... . ............ . 2,570,588 - 20.863 - Tunisian dinars ........ . ......... . . 2,677,418 952,381 0.481 0.525 Turkish liras ..................... . 2,746,228 122,889 9.000 9.000 Uganda shillings ........ . .......... . 471,429 - 7.148 - United States dollars ....... ....... . . . 105,051,793(3) 35,216,960(3) - Venezuelan bolivares ................. . 1,655,033 - 4.485 TOTALS ....... . . . . . . . . . . $167,013,562 $41,997,309 Loans ... $125,634,113 $ 95,467,153 $30,166,960 Equity ... 83,376,758 71,546,409 11,830,349 TOTALS ... $209,010,871 $167,013,562 $41,997,309 ft) Represents currency unit per United States dollar. Undisbursed balances have been translated into United States dollars at the par values as specified in the "Schedule of Par Values," published by the International Monetary Fund, or in the case of Colombia and the Philippines at the rates shown. Non-effective investments have also been translated into United States dollars at the par values with the exception of Ceylon rupees and Korean won where the respective rates of 9.227 and 280.000 to 1 United States dollar have been used. (2) Represents loans. (3)Includes loans disbursed of $94,449,553 and undisbursed of $30,166,960. 40 Notes to Financial Statements Appendix D June 30, 1970 Note A Note C The undisbursed and disbursed balances of investment commitments made Pursuant to action of the Directors, the net income of the Corporation has in currencies other than United States dollars and held by the Corporation been allocated to a reserve against losses and the future net income of have been translated into United States dollars at the exchange rates as the Corporation will, until further action by the Directors or the Board of shown in the table appearing in Appendix C. Governors, be allocated to this reserve. Accrued interest, commitment charges and other income receivable in cur- Consequent upon default in payment, the Corporation has obtained a final rencies other than United States dollars, have been translated into United judgment in Brazil for principal and interest owing to it by D.L.R. Plasticos States dollars at the approximate market rates of exchange. do Brasil, S.A. The prospects for recovery are uncertain. Fertilizantes Sinteticos, S.A. is in arrears in payment of $65,701 interest No representation is made that any currency held by the Corporation is due on convertible subordinated debentures of which $14,000 is for the convertible into any other currency at any rate or rates. account of participants. Note B Editorial Codex Sociedad An6nima has not paid interest and commitment The amount of accrued income on loans and underwriting commitments charges of $304,628 due on May 1, 1970 of which $107,587 is for the includes $171,705 which is not receivable by the Corporation within account of participants. one year. The amount receivable from purchasers on account of effective loans and General equity investments agreed to be sold includes $3,240,168 in respect of The operational investments are represented by both loans and equity. In sales made on an instalment basis. Of this amount $416,160 is receivable addition, in certain investments, the Corporation has the right to acquire by the Corporation within one year. shares and/or participate in the profits of the enterprise. 41 Opinion of Financial Statements Independent Auditor Covered by the Foregoing Opinion 1707 L Street, N.W. Washington, D.C. 20036 July 22, 1970 To International Finance Corporation Washington, D.C. In our opinion, the accompanying financial statements (Appendix A through Balance Sheet ..................... .. . Appendix A Appendix D) present fairly, in terms of United States currency, the financial Statement of Income and Expenses .Appendix B position of International Finance Corporation at June 30, 1970, and the results of its operations for the year then ended, in conformity with gen- Statement of Changes in Reserve Against Losses ...... . Appendix B erally accepted accounting principles applied on a basis consistent with Statement of Operational Investments ....... . . . . . Appendix C that of the preceding year. Our examination of these statements was made Notes to Financial Statements .......... . .... . Appendix D in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing pro- cedures as we considered necessary in the circumstances. PRICE WATERHOUSE & CO. 42 V~~~~~ F F Qr3°> =7 =; X °- M M =n C' M : M m m = C- C- C' C- C' Cn c- W' W W W D DI. r D. t. tF _F ^ Er-co - E, - =0020000z000 0000 0000-1- 0 :00-' . r ST.= 03 . . . . . . . . . . . . . . =.. 0). . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . , . . . . ~~_> C-.) cs _ _ _ 9_.0 - . . . . . . . . . . . . . . . .)C ...). . .-.N. .) 00(0. . ..) . . . . . ... .. . .OC .0 .) .a).0 .0 0. .) -.). .a 0 0 . .a .) .0().- .) 0 .) .r . r .. . co~~~a CO .0) 0 o r 1.0 or -o i0 -. -n N)0 )0 0N )COC) a)N 0 0 N)- 00 00 00 o) o0 CO cn r) N) co r 0o . wo 3 3 c*_ . . . . . . . . .. . a) N) -~~~~~ 4 (-0-00- - 41 W ) - N )> Or s O_ CO N ) 00 _ > C . Co _. - . Co Cr S) ) Ca) . . _ . 00 .. 00 00 0 00 a. 00 _ . .. _O. . . . . . . . . . . . . . . . . . . - .) - . . 92 0. o o o. . . 0. . a . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . .. . 0 0 . . . . . . . . . . . a . . . . . . . . . . . . . . . . . ... . . . .0 . . .r . . .a . . . . . . . . . . . . . . . . . . ... .. 0.. 0 C ) * -M - - - O ' * O - 1- -- ° - - ° - - - - - - - - W W l- Co X^ l-0 s0 N) .0) an V O _ r _J lD O _J l- O l) C.) .- = -. . . Er M C - a) N 00 a) r A a) o Cnr 000 C°r Cra)N) a) a) 0 CO - . 00 _ Cr Cr N) CO 0a) 0 00 N a) 3m Governors and Alternates June 30, 1970 Member Governor Alternate Afghanistan .......... . . Mohammed Aman Argentina ............ . Carlos Moyano Llerena ......... . . Egidio lannelia Australia ............ . L. H. E. Bury .............. . Sir Roland Wilson Austria ............. . Hannes Androsch ............ . Walter Neudorfer Belgium ............ . Baron Snoy et d'Oppuers ......... . Baron Ansiaux Bolivia ............. . Oscar Vega Ldpez ............ . Luis Ovando Candia Brazil .............. . Antonio Delfim Netto .......... . . Ernane Galveas Burma ............. . Kyaw Nyein ............... . Chit Moung Canada ............. . Edgar John Benson ........... . Maurice F. Strong Ceylon ............. . N. M. Perera .............. . Murugeysen Rajendra Chile .............. . Carlos Massad Abud .......... . . Jorge Marshall Silva China .............. . K. T. Li .................. Chao-kuei Ma Colombia ............ . Abd6n Espinosa Valderrama ....... . Jorge Mejia Palacio Congo, Democratic Republic of . . L. Namwisi ............... . Cyrille Adoula Costa Rica ........... . Omar Dengo 0 .............. . Alvaro Vargas E. Cyprus ............. . A. C. Patsalides ..... . ....... A. C. Afxentiou Denmark ............ . Otto Muller ............... . Karl Otto Bredahl Dominican Republic ...... . Diogenes H, Fernandez ......... . . Luis M. Guerrero Gomez Ecuador ............. . Luis G6mez-lzquierdo ........... . Carlos Mantilla-Ortega El Salvador ........... . Edgardo Suarez C ............ . Armando Interiano Ethiopia ............ . Mammo Tadesse ............ . Wolde Mariam G rma Finland ............. . Mauno Koivisto ............. . Jussi Linnamo France ............. . Ministre des Finances ......... . . Bernard Clappier Germany ............ . Karl Schiller .............. . Alex Mdller Ghana ............. . Joseph Henry Mensah .F........ . . E. N. Omaboe Greece ............. . Emmanuel Fthenakis .......... . . Achilles Cominos Guatemala ........... . Emilio A. Peralta P ........... . Jose Luis Bouscayrol Guyana ............. . P. A. Reid ............... . H. 0. E. Barker Haiti .............. . Clovis Desinor ............. . Antonio Andre Honduras ............ . Manuel Acosta Bonilla ... ...... Ricardo Ziniiga Augustinus Iceland ............. . Gylfi Gislason .............. . Magnos Jonsson India .............. . Y. B. Chavan(') .I............ . 1. G. Patel Indonesia ............ . Ali Wardhana .............. . Djoeana Koesoemohardja Iran .............. . Jamshid Amouzegar ........... . Jahangir Amuzegar Iraq .............. . Amin Abdul Karim Kalamchi ....... . Sa'adi Ibrahim Ireland ............. . George Colley .............. . C. H. Murray Israel .............. . David Horowitz ............. . Avraham Agmon Italy .............. . Guido Carli ............... . Paolo Baffi Ivory Coast .......... . . Konan Bedie .............. . Mohamed Diawara Jamaica ............. . Edward Seaga .0............ . G. Arthur Brown Japan .............. . Takeo Fukuda .............. . Tadashi Sasaki Jordan ............. . Sami Judah ............... . Adel Shamayleh Kenya ............. . Mwai Kibaki .............. . John Njoroge Michuki Korea ............. . Duck Woo Nam ............. . Sung Whan Kim Kuwait ............. . Abdul Rahman Salim AlIAteeqi ..... . Abdlatif Y. Al-Hamad Lebanon ......... .. Khalil Salem .Farid Solh Liberia. ........ J. Milton Weeks .Cyril Bright Libya ......... M. H. Arrabeie .K. M. Sherlala Luxembourg ......... Pierre Werner .Albert Dondelinger Malagasy Republic ....... . Ralison Rakotovao .Raymond Randriamandranto Malawi ......... Aleke K. Banda .K. J. Barnes Malaysia. . ........ Tan Siew Sint) .Mohamed Sharif bin Abdul Samad Mauritania ......... Mamadou Tour .Mamadou Cissoko 44 Appendix F Member Governor Alternate Mauritius ............ Veerasamy Ringadoo ...... . . . . . . Ramaswamy Pyndiah Mexico ............ Antonio Ortiz Mena ....... . . . Jose Hernandez Delgado Morocco ........... Abdelkrim Lazraq ........ . . . M'Hamed Bargach(tt Nepal ........... Bhekh Bahadur Thapa .......... . Puskar Nath Pant Netherlands .......... . H. J. Witteveen ........ . . . . . . J. H. 0. graaf van den Bosch New Zealand .......... . H. G. Lang ......... . .. . . .. . C. F. Sproule Nicaragua ........... Guillermo Sevilla-Sacasa ......... . Joan Jose Martinez L. Nigeria ........... 0. Awolowo ......... .. . .. . . . Abdul Aziz Atta Norway ............ Otto Grieg Tidemand ...... . . . . . . Christian Brinch Pakistan ........... Nawab Mozaffar Ali Khan Qizilbash .... . Ghulam Ishaq Khan Panama . .......... Gabriel Castro S.(" .......... . Nicolas Ardito Barletta Paraguay. .......... Cesar Romeo Acosta ....... . . . . . Augusto Colman Peru ........... Francisco Morales Bermudez C....... . Luis Barua Castaneda Philippines ........... Cesar Virata ......... . . . .. . . Roberto S. Benedicto Portugal ............ Joao Augusto Dias Rosas ...... . . . . Luis M. Teixeira Pinto Saudi Arabia. .... Ahmed Zaki Saad Senegal ........... Adama Diallo .............. Hamet Diop Sierra Leone ........... M. S. Forna .............. Elkanah Laurence Coker Singapore ........... Goh Keng Swee .............. Hon Sui Sen Somalia ........... Ibrahim Megag Samater ......... . Omar Ahmed Ornar South Africa ........... Nicolaas Diederichs ........... . Theunis Willem de Jongh Spain. .......... Alberto Monreal Luque .......... . Mariano Navarro Rubio Sudan ........... Abdel Karim Mirghani ....... . . .. Gharieballa Mohamed Hamid Swaziland ........... J. R. Masson .............. James Nxumalo Sweden ........... G. E. String .............. Krister Wickman Syrian Arab Republic ...... . Nour Allah Nour Allah .......... . Ammar Jammal Tanzania ........... P. Bomani .............. Cleopa D. Msuya Thailand ........... Serm Vinicchayakul ........... . Bisudhi Nimmanahaeminda Togo ........... Jean Tevi. ............. Boukari Djobo Tunisia ........... Chedly Ayari .............. Ali Zouaoui Turkey ........... Mesut Erez .............. Kemal Canturk Uganda ........... Laurence Kalule-Settala .F......... . E. B. Wakhweya United Arab Republic ...... . Hassan Abbas Zaki ........... . Hamed Abdel Latif El Sayeh United Kingdom ... .... . Sir Leslie O'Brien ..............Sir Douglas Allen United States ........... David M. Kennedy ........... . Nathaniel Samuels Uruguay.. . Armando R. Malet Venezuela ........... Rafael Alfonzo Ravard ........... . Carlos Emmanuelli Llamozas Viet-Nam ........... ............ . Nguy§n Van Dong Yemen Arab Republic ...... . Abdul Karim Al-Arashyttt .......... Mohamed Said Alattar(tt Yugoslavia ........... Janko Smole ......... . . . .. . . Ksente Bogoev Zambia .......... . E. H. K. Mudenda .F...... . . . . . E. G. Kasonde (1) Appointment effective after June 30, 1970. 45 Directors and Alternates Appendix G and Their Voting Power June 30, 1970 Director Alternate Casting votes of Total votes APPOINTED Robert E. Wieczorowski . ...... . Emmett J. Rice .......... . United States ........................... . 35,418 Derek J. Mitchell . . ......... M. P. J. Lynch .......... . United Kingdom ......... .. . .. . . .. . .. . . .. . 14,650 Georges Plescoff . ........ Jean P. Carribre .... . ...... France.. .. 6,065 S. R. Sen. ......... M. R. Shroff ......... India.. .. 4,681 Wilhelm Hanemann .......... Jorg Jaeckel ......... Germany.. .. 3,905 ELECTED Reignson C. Chen . ........ C. L. Chow. ........ China, Korea, Viet-Nam. . ... 5,209 (China) (China) Patrick M. Reid(') .......... A. Roy MacMillan ......... Canada, Guyana, Ireland, Jamaica. . . . . 5,169 (Canada) (Canada) S. Osman Ali.. ..... Abdol Ali Jahanshahi ....... . Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, Saudi Arabia, (Pakistan) (Iran) Syrian Arab Republic, United Arab Republic .5,022 J. 0. Stone ............. A. W. Young .......... . Australia, New Zealand, South Africa ...... . . . . . . . . . . 4,996 (Australia) (New Zealand) Seitaro Hattori . .......... . H. Jinadasa Samarakkody ..... . Burma, Ceylon, Japan, Nepal, Singapore, Thailand ........ . 4,972 (Japan) (Ceylon) Giorgio Rota . . ........ Juan Moro ........... . Greece, Italy, Portugal, Spain ....... . . . . . . . . . . . . . 4,822 (Italy) (Spain) Pieter Lieftinck .. ......... Vladimir Ceric .......... . Cyprus, Israel, Netherlands, Yugoslavia ...... . . . . . . . . . 4,770 (Netherlands) (Yugoslavia) Andre van Campenhout ....... . Friedrich T. Krieger ........ . Austria, Belgium, Luxembourg, Turkey ...... . . . . . . . . . 4,633 (Belgium) (Austria) Christopher Kahangi ......... Donatien Bihute ........ Ethiopia, Kenya, Liberia, Malawi, Nigeria, Sierra Leone, (Tanzania) (Burundi) Sudan, Tanzania, Uganda, Zambia .4,109 Erik L. Karlsson . ......... . Erik Hauge ........... . Denmark, Finland, Iceland, Norway, Sweden ..... . . . . . . . 4,097 (Sweden) (Denmark) Abderrahman Tazi ......... . Mohammed Younos Rafik ..... . Afghanistan, Ghana, Indonesia, Libya, Malaysia, Morocco ..... . 3,715 (Morocco) (Afghanistan) Luis Machado .. ... . Arnoldo Ramirez-Eva ....... . Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Mexico, (Cuba) (Nicaragua) Nicaragua, Panama, Peru, Venezuela .3,629 Angel R. Caram . .......... . Abelardo Brugada S ........ . Argentina, Bolivia, Chile, Paraguay, Uruguay ........... . 3,549 (Argentina) (Paraguay) Mohamed Nassim Kochman .... . Michel Bako ..... . Congo (Democratic Republic of), Ivory Coast, Malagasy (Mauritania) (Chad) Republic, Mauritania, Mauritius, Senegal, Somalia, Togo .3,054 Virgilio Barco .......... Oscar Alviar-Ramirez ....... . Brazil, Colombia, Dominican Republic, Ecuador, Philippines . . . 3,024 (Colombia) (Colombia) In addition to the Directors and Alternates shown in the foregoing list, the following also served as Director after June 30, 1969: Director End of period of service E. W. Maude .......... ....... . October 21, 1969 (United Kingdom) Covey T. Oliver ... ....... November 3, 1969 (United States) Ernst vom Hofe . ......... January 31, 1970 (Germany) S. Jagannathan. . ........ June 15, 1970 (India) Hideo Suzuki ... ....... June 15, 1970 (Japan) Note: Swaziland (285 votes), Tanisia (383 votes) and Yemen Arab Republic (297 Votes) not formally represented by a Director. (l)To be succeeded by Claude Isbister (Canada), effectioe August 1, 1970. 46 Officers and Department Directors Appendix H President ................................ . *Robert S. McNamara Executive Vice President ............ .. .. .. .. .. .. . William S. Gaud Vice President .................... .... .... . . Ladislaus von Hoffmann General Counsel .................... .... ..... . R. B. J. Richards Treasurer ............................. . . . . *Eugene H. Rotberg Controller ................................ . *Francis R. Poore Secretary ................................ . *M. M. Mendels Director, Programming and Budgeting Department .*..... . . . . . . . *John H. Adler Director of Investments, Africa and Middle East ...... . . . . . . . . Albert Adomakoh(1) Director of Information and Public Affairs ....... . . . . . . . . . . *William Clark Special Representative in Europe ......... . . .. . . .. . . . . Alfred E. Davidson Director, Engineering Department ..... . . . H. Geoffrey Hilton Director of Investments, Asia ..................... Ronald K. Jones Director, European Office ..................... *Arthur Karasz Director of Marketing.. .................... Henry Koch Accounting Adviser.. .................. E. Waldo Mauritz Special Representative in the Far East .................. . Naokado Nishihara Director of Investments, Latin America, Europe and Australasia ..... . . Neil J. Paterson Economic Adviser ................. .... .... ... . Moeen A. Qureshi Director of Administration ............ .. .. .. .. .. .. . *Hugh B. Ripman *These officers and department heads hold the same positions in the International Bank for Reconstruction and Development. (1)Effective August 1, 1970. International Finance Corporation Headquarters / 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Telephone: EXecutive 3-6360 European Office / 66 Ave. d'1ena, Paris 16e, France. Telephone: 553-2510 Cable Address / CORINTFIN