Washington, D.C., June 23, 2003—The
International Finance Corporation, the private sector arm of the World
Bank Group, has signed a $50 million loan agreement with Tata Engineering
and Locomotive Company Limited to support its ongoing investment program
and new product development initiatives.
TELCO is a flagship company of the Tata group, one of India’s largest
and oldest business groups. The company is among the world’s top
ten commercial vehicle manufacturers as well as a domestic market leader
for over 50 years. Since 1997 TELCO has been in the passenger car
business. Its highest selling car now commands a market share of
15 percent in the domestic passenger car segment.
According to Mr. Praveen Kadle, Executive Director of TELCO, “This investment
is an endorsement of TELCO’s plans and objectives and we look forward
to a long-term partnership with IFC.”
Mr. Dimitris Tsitsiragos, IFC director for South Asia responded, “TELCO
has had a remarkable turnaround and has demonstrated its engineering expertise
by successfully developing and marketing world class passenger vehicles.
IFC is glad to be supporting TELCO’s growth plans and to be associated
with one of the most progressive business groups in India.”
The mission of IFC is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people's
lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY02, IFC has committed more than $34 billion of its own
funds and arranged $21 billion in syndications for 2,825 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY02 was
$15.1 billion for its own account and $6.5 billion held for participants
in loan syndications.