WASHINGTON, D.C., April 28, 1999 – The
International Finance Corporation signed agreements to invest US$10 million
in the Industrial Promotion and Development Company (IPDC), Bangladesh's
first private sector development finance institution.
The project will alleviate the acute need for long-term finance for domestic
private sector companies including small and medium-sized enterprises.
IFC will also provide advice on IPDC's capital structure. In addition,
IFC will provide training assistance to help IPDC improve its internal
and institutional capabilities in portfolio management, credit appraisals,
and risk management. This assistance is made possible through a trust fund
grant from the Netherlands Minister for Development Cooperation.
IFC Manager Mr. Hany Assaad said that, by extending its role beyond financing,
IFC is helping IPDC to strengthen its capital base, refocus its activities,
and develop into a more diversified financial institution.
IPDC was established in 1982 by the Aga Khan Fund for Economic Development,
the Commonwealth Development Corporation, the German Development Company
(DEG), the government of Bangladesh, and IFC. IPDC has become a pre-eminent
financial institution providing a range of financial products including
long-term debt and equity financing, leasing and working capital loans.
IFC, part of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets, and providing technical assistance and
advice to governments and businesses.