Washington DC., May 25, 2005 —
The International Finance Corporation (IFC), the private sector arm
of the World Bank Group, signed today a $1.4 million loan to help Kyrgyz
firm Altyn Ajydar renovate its corrugated cardboard packaging operations
and double its output. The expansion helps meet a growing demand for packaging
in the region and comes with a noticeable environmental benefit as the
company will begin recycling waste paper from its production of cardboard.
The expansion will also allow Altyn Ajydar to become the Kyrgyz Republic’s
first domestic manufacturer of plastic packaging.
IFC’s investment in a leading Kyrgyz producer is timely, as it helps encourage
much-needed private domestic and foreign direct investment. Through
this project, IFC will also support the country’s manufacturing and agribusiness
industries, as these sectors require quality packaging materials.
Altyn Ajydar is an existing IFC client with a positive track record in
operations and a commitment to sound environmental and social policies.
In 1999, the company received its first IFC financing to upgrade
its packaging and printing plant. Company sales have since increased
fivefold, capturing 70 percent of the domestic market and 7 percent of
the market in Kazakhstan. Over the years, the company has acquired
a reputation for providing quality products with flexible payment terms
for its customers.
“We are pleased with the progress that Altyn Ajydar has made,” said IFC’s
Director for Global Manufacturing and Services, Dimitris Tsitsiragos. “This
investment underlines the importance and continuing commitment that IFC
attaches to supporting private sector development in economies that want
to modernize and grow quickly.”
“Our investment fits well with the country’s economic reform agenda,
which includes sustainable growth of the private sector and a larger degree
of economic transparency,” said IFC’s Director for Southern Europe and
Central Asia, Khosrow Zamani.
The mission of IFC (www.ifc.org)
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 FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.