Washington, D.C., May 5, 2004—The International
Finance Corporation, the private sector arm of the World Bank Group, has
signed an agreement to provide a 20.0 million Euro loan to Drujba A.D.
in Bulgaria. Drujba is a subsidiary of the largest glass container manufacturer
in the Balkans, Yioula S.A..
IFC’s loan helps Drujba finance a 47.0 million Euro investment program
which includes the construction of a furnace with an output of 130,000
metric tonnes per year, the installation of six production lines, and the
establishment of a small mold manufacturing facility. In addition, Drujba
will refurbish two warehouses for storage of finished goods and refinance
a portion of its short-term debt.
Khosrow Zamani, IFC’s director for Southern Europe and Central Asia said,
“This project is an example of IFC’s commitment to Bulgarian companies
that are increasing efficiency and striving to set high standards in environmental,
social, and governance practices. Our investment demonstrates the success
of Bulgaria’s privatization and modernization efforts and shows that the
country is an attractive location for foreign direct investment.”
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 FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.