Washington, D.C., May 5, 2000 –
Following is a package of brief announcements about IFC transactions signed
in the past month for investments that will support private sector enterprises
in the developing world. Packaged deals is a monthly digest of new IFC
investments that have not been announced in our regular press releases.
More information is available by contacting the Media Relations team listed
at the end.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.
As part of its efforts to help Asian companies recover from economic crisis,
IFC has worked closely with PT. South Pacific Viscose (SPV), the leading
producer of viscose staple fiber (rayon) in Asia, to restructure the company's
debt. The financial restructuring will increase SPV's capital base and
extend its loan maturities to optimize cash flow so that the company can
maintain its position as a key supplier to the Asian textile industry.
SPV supplies about 5 percent of total world demand for viscose staple fiber.
The restructuring of companies, such as SPV, that supply the industries
which are key foreign exchange earners, is essential to supporting the
recovery of the Indonesian economy. This is IFC's fourth restructuring
in Indonesia. IFC also helped PT. Hotel Santika Nusajaya, PT. Semen Andalas
and PT. Rimba Partikel Indonesia to undertake financial restructurings.
Lenzing AG of Austria is SPV's largest shareholder and provides management,
marketing and technical assistance. Creditors include Deutsche Bank AG
(Singapore), Deutsche Bank AG (Jakarta), the Hongkong and Shanghai Banking
Corporation Limited (Singapore), HSBC Limited (Jakarta), Bank Austria Creditanstalt
AG, Deutsche Investitions-und Entwicklungsgesellschaft (DEG), and IFC.
BRAZIL: CERAMIC TILE COMPANY
IFC will loan US$16 million to Portobello S.A., a mid-sized family-owned
company that manufactures ceramic tiles in Tijucas, Santa Catarina State,
so that it can produce more high-quality tiles at low cost to consumers.
The $40.5 million project will expand operations by building a new porcelain
tile plant as well as a new mineral processing unit that is being developed
in a joint venture with Minerali Industriali, the market leader for mineral
processing in Italy. A new mortar and grout plant will also be established
in São Paulo as a joint venture with Custom Building Products, a US-based
company. The Portobello Shop franchise will be expanded with an additional
86 stores. As part of the project, the entrepreneurs who will own and manage
the chain of Portobello shops will be trained and partly financed by the
company. Portobello has introduced a new professional certification in
Brazil by extending the curriculum of its school of ceramics to train tile-setting
specialists. The company will provide its graduates with financing for
their small business needs and give them the opportunity to work as subcontractors
for the Portobello shops. Portobello belongs to the Portobello Group, a
Brazilian multi-sector group managed by the Cesar Gomes family.
For more information on any of these transactions, please contact one of
the following people:
Ludwina Joseph, (202) 473-7700, firstname.lastname@example.org
AFRICA & ASIA
Jannette Esguerra, (202) 458-5204, email@example.com
MIDDLE EAST & LATIN AMERICA
Brigid Janssen, (202) 458-4698, firstname.lastname@example.org
Lana Moriarty, (202) 473-6005, email@example.com
GENERAL PRESS INFO