Washington, D.C., September 21, 2000—The
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.
AGRO-INDUSTRY PROJECT IN CAMEROON
IFC will invest $162,000 in Banagri Sarl, Cameroon to develop a palm tree
plantation and establish a modern palm oil extraction mill in Njombe-Penja,
80 kilometers north of Douala, in one of the most developed palm tree plantation
zones of the country. The company owns 350 hectares of fertile land suitable
for palm tree growing and is acquiring an additional 150 hectares in a
nonforested area where several major plantations are located. Total project
cost is estimated at $325,000.
Banagri Sarl is owned by Mr. Roger Fernand Tchokogue and his family. Mr.
Tchokogue is from a Cameroonian agricultural family and is a chartered
By financing the project, IFC will provide long-term resources not currently
available to agribusiness. The project will help reduce rural migration
to cities and contribute to employment generation—one of the principal
factors inhibiting rural development. IFC's support of this sector and
the company will also encourage other potential investors in agribusiness.
ROAD MAINTENANCE SERVICES IN GUINEA
IFC will invest $500,000 in a Guinean company, MATP (Société Africaine
de Matériaux et Travaux Publics), to provide road maintenance services
for donor-funded projects. The company will purchase civil works equipment
and build a workshop and offices in Conakry, Guinea, at a total project
cost of about $1.26 million.
MATP is majority owned by Mr. Cherif Diallo, a Guinean metallurgical engineer
with long experience in the supervision of civil works in Africa. Minority
shareholders include private French and Guinean investors.
Besides improving road maintenance capabilities in Guinea, the project
will help strengthen the local private sector and have a strong demonstration
effect for other local entrepreneurs. It will increase accessibility to
the rural areas and facilitate the transport of food products from the
villages to the cities.
GRAIN STORAGE PLANT IN KENYA
IFC will invest $2.5 million in Lesiolo Grain Handlers Limited (LGHL) to
establish a $6.6 million grain-handling and storage plant located close
to the major grain-growing areas in Kenya. LGHL will provide cleaning,
drying, and storage services for maize, wheat, and barley producers within
Kenya as well as provide handling and storage for grain imported into Kenya
by local millers and for grain in transit to Uganda. As the first independent
provider of grain-handling facilities in Kenya, LGHL will fill a gap in
Frank Tundo, a Kenyan citizen with more than 25 years of experience in
large-scale farming ventures in Kenya, will own 50 percent of the company.
He has a diploma in agriculture and agricultural engineering from the Royal
College of Agriculture in Cirencester, UK. His son, Carl Tundo, who will
own the balance of the shares, has a degree in environmental engineering
from Silsoe Agricultural College, Cranfield University, UK.
The project will make grain-handling and storage facilities available to
small farmers who have no alternative access to grain-cleaning and drying
equipment and have, in many cases, been reduced to drying their grain on
the roadside or forced to sell their produce as animal feed at heavily
BUILDING CONSTRUCTION IN MALI
IFC will invest $124,000 in Fibromat-Mali Sarl, located in Djicoroni in
Bamako, Mali. The company, which manufactures facing stones and cement
materials for the building construction sector in Mali, will relocate its
plant, expand production capacity, and import new equipment from Italy
and the UK. The total project cost is estimated at $250,000.
Mrs. Sanogo Fatoumata Keita, a Malian national, is the founder, principal
shareholder, and managing director of the company. She is an accountant
by training and holds a degree from ESICA, a Malian management and accounting
By helping a small company grow into a semi-industrial unit, the project
will assist in strengthening the country's weak industrial sector. It will
also promote a woman with demonstrated business ability and leadership
who serves as a role model in Mali and the region for other women entrepreneurs.
TOURISM PROJECT IN SENEGAL
IFC will invest $1 million in Royal Saly SA to build a two-star seaside
resort at a total cost of $3.62 million in North Saly, one of the most
attractive tourist areas of Senegal about 80 kilometers from Dakar. The
Royal Saly Hotel will be developed on a 2.8-hectare plot and will include
130 rooms, a restaurant, bar, conference room, boutiques, fitness room,
mini-club, swimming pool, and tennis court.
Royal Saly is sponsored by Senegal Hotels, a hotel operator with seven
beach hotels in the country's two main tourist zones, the Casamance and
South Saly. Senegal Hotels is majority owned by Mamadou Racine Sy, chairman
of Senegal Tours and Senegal Travel Services. Bolloré Investissements and
Look Voyages, both French companies, are the other shareholders in Royal
Tourism is Senegal's second major source of income—in 1999, the sector
generated revenues of about $160 million equivalent—and the project will
help support the tourist infrastructure. Royal Saly is expected to generate
tax revenues of about $2 million and create 127 new jobs for local employees.
TOURISM PROJECT IN ZIMBABWE
IFC will invest $300,000 in Universal Investments (Pvt) Limited of Zimbabwe.
The $810,000 project will rehabilitate and refurbish two hotels, one in
Harare and the other in Marondera. Both hotels are two-star. The former
Kamfinsa Hotel now renamed Charleston is located in the Harare suburb of
Greendale about 10 kilometers from the city center. Greendale is an attractive
suburb with two small hotels serving the budget tourist as well as the
local market. The Marondera Hotel is 70 kilometers from Harare in the center
of Marondera town, along the Harare-Mutare road.
The sponsor of the project is Universal Investment Pvt. Ltd., which is
equally owned by a married couple, Paul Matamisa and Pedia Moyo. Both sponsors
have extensive knowledge of the hospitality industry in Zimbabwe with a
combined experience of 45 years in the business and a track record of success.
The project will help diversify the country's tourism sector—a key foreign
exchange earner. It will create employment in the building and service
sectors when the hotels are operational. It will also stimulate the growth
of small but vital centers such as Marondera and help decentralize development.
RESTRUCTURING OF MEDICAL CENTER IN THAILAND
IFC will help its client Bumrungrad Medical Center Limited (BMC), a leading
private hospital in Bangkok, undertake the financial restructuring that
many Asian companies need following the Asian financial crisis.
IFC invested in BMC in 1994 to construct a new private general hospital.
Since its establishment in January 1997, BMC has raised the standards of
health care services in Bangkok and enhanced local management skills by
engaging experienced foreign specialists to work in major management positions
and transferring knowledge and know-how to local staff. BMC was hit by
the Thai baht devaluation in 1997 and ensuing Asian economic crisis and
has suffered financial difficulty since 1998.
IFC played a significant role in arranging the restructuring package by
working closely with BMC's sponsors and the IFC B-loan participating banks
to seek equal burden sharing. The restructuring package will include an
extension of the grace period and maturity for IFC loans, conversion of
subordinated debt into equity, and repayment of all arrears. IFC will also
provide a US$/baht hedging facility to reduce foreign exchange risk for
BMC. The restructuring will improve BMC's financial position to better
withstand possible future downturns and help secure its leadership position
based on high-quality health care service and state-of-the-art facilities.
The transaction will have an important demonstration effect for other Thai
corporations and contribute to business confidence in Thailand, especially
on the part of foreign investors.
This project was assisted by a grant from the government of Japan, through
its trust fund with IFC, which undertook a study on the overall state of
the private health care industry in Thailand.
For more information on any of these transactions, please contact one of
the following people:
Ludi Joseph, (202) 473-7700, email@example.com
AFRICA & ASIA
Jannette Esguerra, (202) 458-5204, firstname.lastname@example.org
MIDDLE EAST & LATIN AMERICA
Brigid Janssen, (202) 458-4698, email@example.com
Lynn Véronneau, (202) 473-6005, firstname.lastname@example.org
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