WASHINGTON, D.C., June 3 -- The International
Finance Corporation (IFC) has signed financing agreements for a long-term
loan of US$82.4 million for Caribbean Ispat Ltd., an integrated steel plant
in Trinidad and Tobago.
Caribbean Ispat Ltd., which produces wire rods, will use the financing
to modernize its facilities and conduct an environmental upgrade to bring
the plant into compliance with World Bank environmental standards.
"Since 1994, IFC has worked closely with Caribbean Ispat in identifying
the best approaches to optimize the performance of each phase of steel
production and to improve the environmental, health, and safety aspects
of the mill's facilities," said Helmut Paul, IFC's Director of the
Latin America Department. "The modernization program supported by
IFC's financing is expected to enable Caribbean Ispat to produce internationally
competitive products with lower cash production costs and higher yields."
IFC has arranged a financing package consisting of a loan of US$27.4 million
for its own account and a syndicated loan of US$55 million for the account
of international commercial banks, including P.T. Bank Rakyat Indonesia,
Berliner Bank, Banque Nationale de Paris, and Bank of Nova Scotia. Enterprise
Development Ltd., a project finance company in Trinidad associated with
IFC, arranged a US$50 million loan from banks and institutional investors
in Trinidad and Tobago to help meet part of the purchase price of other
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing