Press Releases
print

India—IFC Finances Larsen & Toubro’s Overseas Growth Plans


In Washington, DC:
L. Joseph

Phone: +202 473 7700 - Fax: +202 974 4384

Email:  
ljoseph@ifc.org


Mumbai, June 17, 2003—The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will provide a loan of $50 million to Larsen & Toubro, one of India’s largest engineering and construction companies. The loan will facilitate L&T’s ongoing plans to expand its business in overseas markets, particularly in Africa, Southeast Asia, and the Middle East.

“This financing will establish a strong relationship between L&T and IFC and lead to long-term cooperation in a range of projects in different sectors, including infrastructure and oil and gas,” said Mr. Dimitris Tsitsiragos, IFC’s director for South Asia.  Commenting on the larger impact of the loan, he added, “L&T’s expansion plans will promote south-south cooperation and support regional economic development.”

"This loan is a first step toward developing a long-term partnership with IFC, which is a means to achieving our goal of becoming an Indian multinational,” said Mr. Y. M. Deosthalee, chief financial officer of L&T.


Established in 1938, L&T is engaged in engineering, procurement, and construction for large infrastructure, industrial, and utilities projects; manufacturing of cement; and the manufacturing of electrical and electronics equipment. L&T is a market leader in India. Its strength lies in its multidimensional engineering capability, which enables it to execute complex engineering projects competitively. The company’s expansion and diversification in related areas have enabled it to grow steadily over many years.


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.