INTERNATIONAL FINANCE CORPORATION- ANNUAL REPORT 1987
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INTERNATIONAL FINANCE CORPORATION ANNUAL REPORT 1987 Table of Contents Aims and Objectives
Aims and Objectives ii The International Finance Corporation is a multilateral development Highlights of the Year I institution established to promote productive private investment that will Letter to the Board of contribute to the economic growth of its developing member countries. Governors 2 The Corporation, an affiliateof the World Bank, was established in 1956. Board of Directors and Senior IFC's capital resources are provided by its 132 member countries, Ill Management 3 of which are developing. These member countries collectivelydetermine The Year in Review 4 the Corporation's policiesand activities. The Investment Climate 7 The ultimate objective of the Corporation is to improve the well-being Report on Operations 11 of the people in its developing member countries. Its principal tasks are Regional Reports 16 to provide and bring together the financing, technical assistance and Capital Markets 29 management needed to develop productive investment opportunities in Other Operations 31 these countries. The Corporation invests in privately owned enterprises, Personnel Management and but will participate in mixed enterprises with an element of government Administration 37 ownership where there is no realistic local alternative. In such cases, IFC Financial Review 38 seeks to encourage movement towards fuller private ownership and Financial Statements 41 control. Appendices 49 IFC makes both equity investments and loans without government The Board of Governors 50 guarantees. This permits the Corporation to provide financial assistance The Board of Directors 52 suited to the needs of each project, taking into account the ability of each Advisory Councils 53 firm to raise funds from other sources on reasonable terms. The Year's Investments 54 In all its activities,the Corporation works to raise investor confidence. Investment Portfolio 64 In addition to providing financial and technical assistance, the Corpora- Statement of Cumulative tion can employ its status as an international institution to facilitate the Gross Commitments 74 process by which investors and governments can arrive at mutually IFC Management 75 satisfactory agreements. The Corporation seeks to encourage the flow of private capital both domesticallyand internationaDly,through the establishment or expansion of local capital markets and financial institutions. It also offers technical assistance to member governments in support of their efforts to create an investment environment which will encourage productive and beneficial domestic and foreign investment.
IiI Highlights of the Year
1987 1986
New InvestmentsApproved ...... 92 85 Total Investments ...... $920 million $1.16 billion Net Investmentsfor IFC's own account ...... $790 million $710 million Total Project Costs ...... $ 4 billion $ 3.6 billion Net IFC Commitments ...... $742 million $513 million Net IFC Disbursements ...... $328 million $325 mnillion Net Income ...... $...53.8 millionf $25.4 million Paid-in Capital ...... $722 million $602 million Accumulated Earnings ...... $338 million $284 million Borrowingsfor the Year ...... $441 million $500 million Total Disbursed Loan and Equity Portfolio for IFC's Account ...... $ 1.9 billion $ 1.8 billion
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| 1 1 ws~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ InternationalFinance Corporation 1818 H Street, N.W. (202) 477-1234 Washington, D.C 20433 Cable Address: CORINTFIN U.S.A. To the Board of Governors
The Board of Directors is pleased to report that during the Fiscal Year ended June 30, 1987, the International Finance Corporationcontinued to expand its assistanceto the private sector in member countriesin accordancewith its Five Year Program. The number of projects approvedby the Board wvasagain a record and at the same time the disbursedloan and equity portfolio increasedduring the Year by 6.2 percent to a total of $1,878 million. The number of companies in which the IFC had investments outstandingat the end of the Year rose.from 377 to 404. These investments were distributedbroadly amongst IFC developingmember countries,in a total of 77 countries. During the Year the Board of Directors reviewedthe Corporation'sFive Year Program and confirmedits broad outlines with some modifications.Estimates for the growth of the number of projects to be approvedandfor the size of the disbursedportfolio were reducedslightly. It is now expected that by the end of FY89 the Corporationwill hiave approved new investmentsfor its own account of $4.42 billion over five years and that the total disbursed and outstandingportfolio at that stage will be about $2.63 billion. The Corporationwill aim to achieve this expansion in a manner which will continueto strengthenits finances. In the long run, the Corporationexpects to achievea return on its net worth of about 5 percent, although thisfigure was exceeded in FY87, mainly because of capitalgains on equity sales. The specialinitiatives in the Five Year Programfocusing on sub-SaharanAfrica, capital market development,oil and gas explorationand companyrestructuring, will be continued.In the case of sub-SaharanAfrica, the Corporation expects to exceed the number of investmentsenvisaged in the originalprogram, but becausethe averagesize is smaller, the volume of dollar investment will be somewhat less. At the same time, the Corporationis making specialefforts, through new initiativessuch as the Africa Project DevelopmentFacility, to help small and medium size businessesin this region. Activity expanded in the capital markets area, including efforts to promote portfolio investment through the Emerging Markets Growth Fund and three other Funds approved during the Year and also efforts to promote the conversionof debt into equity in some heavily indebtedcountries. The Corporationalso diversifiedits activitiesby expandingits advisoryservices in a number of areas. These include the ForeignInvestment Advisory Service, which expanded substantiallyduring the Year,providing assistance to 8 governments;andfee-based advisory work on the restructuringor privatizationof corporationsin a number of member countries. During the Year,intensified efforts were made to correct the problems in IFC's portfolio which have arisen mainly from the difficult economic environment of the past several years faced by many developingmember countries. Significantprogress was made in this respect. The financial strength of the Corporationwas maintained with the net incomefor FY87 at $53.8 million, approximatelydouble the resultsfor the previousyear. This reflectsin part the high level of capitalgains on equity sales realized this year. As a growing number of investmentsare reachingmaturity, the opportunitiesincrease for profitably revolvingthe Corporation'sequity portfolio. Earningsfrom liquidassets, held in anticipationof disbursements,andfee income also contributedto the increase in net income. The Board of Directorsrevievved the Corporation's financial policiesduring the Year. The Corporationhas suffered some erosion of its earningassets from the cancellationand prepayment offixed interest loans during the period when interest rates werefalling, slowing the growth of its earningasset base. To help deal with thisproblem in thefuture, the Board approved a variety of newfinancial instruments to give the Corporation'sborrowers more options and flexibility and to enableIFC to pass on to its borrowersthe benefitsof major innovationsin 'vorldcapital and money markets. To obtain fundingfor the Corporation'sexpanding activities, the Corporationcontinued its market borrowingin Fiscal Year 1987, raising$241 million throughfive bond issuesin majorfinancial markets and borrowing$200 million from the World Bank. The Board expressesits appreciationto the managementand staff of the Corporationfor their continueddedication to IFCs objectivesandfor their effort in providing increasinglyeffective support to thepromotion of private domestic andforeign investment in developingmember countries. The Board of Directorshas had this Annual Reportpreparedfor the Fiscal Yearending June 30, 1987 in accordance with the by-laws of the Corporation.Barber Conable, Presidentof the Corporationand Chairman of the Board of Directors, has submitted this Report, together with accompanying audited finiancialstatements, to the Board of Governors.
2 Board of Directors
Directors Alternates
Fawzi Hamad Al-Sultan Mohamed Wafik Hosny Paul Arlman Cvitan Dujmovic Mourad Benachenhou Salem Mohamed Omeish Gerhard Boehmer Michael von Harpe Felix Alberto Camarasa Claudio A. Pardo Jacques de Groote Heiner Luschin Mario Draghi Rodrigo M. Guimaraes C. Ulrik Haxthausen Veikko Kantola Mitiku Jembere J.S.A. Funna Robert B. Keating Hugh W. Foster Tim Lankester J.A.L. Faint Pedro Sampaio Malan Carlos Sanclemente Andre Milongo Jean-Pierre Le Bouder Helene Ploix Olivier Debains Frank Potter Horace Barber Mohd. Ramli Wajib Kikham Vongsay C.R. Krishnaswamy Rao Sahib M. Mustafizur Rahman Mercedes Rubio Francisco Vannini Murray A. Sherwin Robert G. Carling Jobarah E. Suraisry Mohammad A. Al-Shawi Xu Naijiong Zhang Junyi Kenji Yamaguchi Zenbei Mizoguchi
Senior Management
Barber B. Conable President Sir William Ryrie Executive Vice President Daniel F. Adams Vice President, Portfolio Operations Jose E. Camacho Vice President and General Counsel Makarand V. Dehejia Vice President, Engineering Judhvir Parmar Vice President, Investment Operations Hilary P. Reddy Vice President, Finance and Resources Management Timothy T Thahane Secretary Richard H. Frank Treasurer
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his report covers the lio, within which there are a cess to some of the new financial Fiscal Year which number of companies that have instruments and techniques ac- ended on June 30,1987, suffered from the difficult eco- tivelv in use in the industrialized the third year in nomic conditions affecting many countries, but not often offered IFC's current Five Year developing countries. During the before now to the private sector Program. Year the Corporation intensified in developing countries. It is ex- During the Year, the Board of its efforts to deal actively with pected that IFC will also benefit Directors reviewedthe 1985-89 problem cases of this kind and, as this wider choice will reduce Five Year Program. So far, the at the same time, to strengthen pressures on borrowers to cancel Program's objectives have been its portfolio by expanding its or prepay loans. fully achieved in terms of the base of sound earning assets by The effort to strengthen the number of investments approved new lending techniques, includ- financial position of IFC is not by the Board, but. in an intema- ing more loans for general cor- in conflict with the Corpora- tional economic environment porate expansion to help com- tion's developmental role. On less favorable than expected panies that do not have access the contrary, an improvement in when the plan began, the dis- to such finance from other the Corporation's financial posi- bursed portfolio has not grown sources and loans to sound pri- tion allows IFC to sustain and as fast as was anticipated. Dis- vate sector intermediaries for improve on the servicesit pro- bursements were partly affected on-lending to small and medium vides where they are most need- by cancellationsof a number of size enterprises. ed-in those parts of the world fixed rate loans at a time when The main aim for IFC during where the risks of investment interest rates were falling, De- the remainder of the Five Year are greatest. spite this, however, the disbursed Program wil be to expand its Gross disbursements for the portfolio increased by 6.2 per- investments so as to make a Year totalled $493 million, and cent in FY87 to a total of growing contribution to eco- disbursements for IFC's account $1,878 million. nomic development and to do were $328 million. The Board confirmed the so in a manner which will also Commitments of investments main outlines of the Five Year strengthen the Corporation's fi- for IFC's own account have ris- Program. with the objective of a nances. At the same time, the en sharply compared to FY86. total volume of new investments diversificationof the Corpora- During the Year S742 million in to be approved by the Board in tion's activitieswhich has been a investments were committed, up the five year period of $6.5 bil- feature of recent years will con- 45 percent over the volume of hon, including loans syndicated tinue, with an increasing number $513 million signed in FY86. to banks, and $4.4 billion for of activities of an investment Ninety-two new investments IFC's own account. banking nature in world capital Reflecting a changing envi- markets designed to promote ronment and experience gained portfolio investment and conver- during these past two years, the sion of debt into equity; assis- Board made certain adjustments tance in company restructuring, inToti to the Program: capital markets including advisory services in initiatives wil be further empha- this field; and advice to govern- sized; restructuring activitieswill ments on domestic capital mar- be intensified;assistance to sub- ket development and on direct Saharan Africa will be sustained foreign investment policy. in terms of numbers of projects The Board of Directors also and more attention wlll be given examined the Corporation's fi- to special servicesof an innova- nancial policiesduring the Year. . 4' tive nature, while the energy ex- As a result, the Corporation ploration and development ini- adopted new approaches to loan 3' tiative willbe recast in response funding this Year that bring to to changing market needs and borrowers advantages arising opportunuties. from developments in interna- The Corporation is making tional financial markets. IFC's efforts to strengthen its portfo- clients will in the future have ac-
4 THE PAST TEN YEARS (US$ millions)
Fiscal Years 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987
OPERATIONS Investments Held Number of Firms 225 253 288 314 333 341 349 366 377 404 Loans 799 889 1,159 1,374 1,551 1,588 1.644 1,748 2,001 2,347 Equity 184 223 245 273 284 294 346 368 386 409 Total 983 1.112 1,404 1.647 1,835 1,882 1,990 2,116 2,387 2,756 Disbursements IFC's Own Account 106 178 190 292 246 228 238 266 325 328 Participants 49 27 122 295 284 146 143 84 140 166 Total 155 205 312 587 530 374 381 350 465 493 Commitments IFC's Own Account 201 210 402 347 300 218 355 354 542 742 Participants 132 196 248 390 80 115 415 127 139 255 Total 333 406 650 737 380 333 770 481 681 997 Approvals Number of Projects 41 48 55 56 65 58 62 75 85 92 Gross Investments 338 425 681 811 612 845 696 937 1,156 920 Total Project Costs 1,872 1,714 2.377 3,340 2.936 2,894 2.473 2,768 3.588 4,343 RESOURCES AND INCOME Capitalization Borrowings 462 455 438 509 531 536 582 825 1,223 1,581 Paid-in Capital 144 229 307 392 497 544 544 546 602 722 Accumulated Earnings 100 119 140 159 181 204 230 258 284 338 Earnings Net Income 12.5 19.2 20.7 19.5 21.6 23.0 26.3 28.3 25.4 53.8 were approved by the Board of IFC's servicescontinue to ex- means of sharing the risks with Directors in Fiscal Year 1987, pand. In addition to the new fi- foreign equity investors in cer- compared to 85 in the previous nancial instruments mentioned tain cases. year, while the $790 million of previously, the Corporation has The Africa Project Develop- investments for IFC's own ac- also launched a number of other ment Facility, providing techni- count was up 11 percent over important initiativesduring the cal assistance to small- and that for FY86. Year. For example, in response medium-sized businessesin sub- Net income for the Year in- to the widespread need to alle- Saharan Africa, was brought creased substantiany: $53.8 mil- viate the debt problems in devel- into full operation during FY87 lion as compared to $25.4 mil- oping countries and strengthen with offices in Abidjan and lion in FY86. This increase can equity investment there, IFC has Nairobi. Preparatory work was be attributed mainly to higher devised mechanisms for the con- carried out during the Year for a capital gains this year from the version of debt into equity. new facility, the African Man- sale of mature equity invest- The Corporation has contin- agement ServicesCompany. ments, at a time when equity ued to search for new ways of AMSCo will help to find quali- markets in many countries have assisting investment in sound fied senior executivesfrom been buoyant, and partly from companies in developing coun- around the world to work with earnings from liquid assets and tries. The technique known as African companies, assist in the fee income that made a higher GRIP (Guaranteed Recovery of training of local managers, and contribution to earnings than Investment Principal) was intro- provide support and back-up last year. duced during the Year as a servicesto these companies.
5 Another field of activity that part in ensuring that IFC's pro- ing direct investment of $920 has grown substantially during grams are responsiveto the cur- million in 92 projects with total this past Year is advisory ser- rent investment conditions in de- costs projected to reach over $4 vices. These servicesinclude veloping countries. billion. This took place against technical and policy advice to During FY87, the Corpora- the backdrop of a generally dif- governments through IFC's For- tion was able to develop and im- ficult economic environment. eign Investment Advisory Ser- plement a program encompass- However, the program reflects vice; financial advice to private IFC's basic approach that, not- sector clients such as financial withstanding short-term eco- diagnosis, restructuring and stra- nomic uncertainties, the longer- tegic planning; and advisory in- term solution to the structural vestment servicesin connection adjustment problems of many with complex project structur- developing member countries ing, appraisal and financial lies in selectivenew investments packaging. In many of these ef- which are designed to improve forts, fee income is expected at efficiencyand exploit compara-
least to cover costs and, in some - tive advantage, often in the con- cases, also contribute to net ear- text of an improved economic rungs. IFC expects to see an in- policy framework. The contin- creasing level of contribution to < ued shortfall of alternative long- earnings from advisory activities term financing from internation- in the future. al commercial banks to many IFC's Banking Advisory developing countries, and the ef- Panel continues to provide valu- forts of many governments to able advice to the Corporation's expand the developmental con- management. The Corporation's M tribution of private sector invest- new Business Advisory Council, ment, constitute both a chal- organized this Year, held its first lenge and an opportunity for the meeting in May, 1987. The Corporation. While no major Council brings together business improvement in international leaders from both developing economic conditions is anticipat-
and industrialized countries; its - ed, IFC expects to expand its role is to advise the Corpora- response to the development tion's management on the needs challenges facing its members and views of business in connec- through selectiveproject invest- tion with IFC's activities.The ments and a range of technical Council will play an important assistance and advisory services.
6 INVESTMENT CLIMATE
uring 1986, the eco- ward pressure on prices: relative has been maintained, i.e., limited nomic performance to prices of manufactured ex- voluntary lending available for of developing coun- ports, the average price index of project financing in Latin Amer- tries as a group de- non-oil commodities fell by 16 ica and sub-Saharan Africa, and teriorated, as GDP percent during 1986. Low rates relativelyample funds for some growth slowed to 3.6 percent of growth in industrial countries Asian countries. against 4.2 percent achieved in (2.5 percent GDP growth, down The renewed interest by mem- 1985. Several developments in from 4.6 percent and 2.8 percent ber countries in attracting for- late 1985 and early 1986, partic- in 1984 and 1985, respectively), eign private investment, which ularly the fall in oil prices and the major market for developing was discussed in the 1986 An- interest rates, failed to produce countries' primary commodity nual Report, continued during the expected recovery in overall exports, restrained growth in de- the Year. As anticipated, howev- world economic growth. mand. er, foreign private investment Indeed, the drop in petroleum Finally, little progress was tends to respond to increases in prices from an average spot made in negotiations between demand or other opportunities price of $27 a barrel in 1985 to highly-indebtedcountries and and, therefore, is more likely to $14 in 1986 had a depressing im- commercial banks for increased follow a renewal of prosperity in pact on oil exporters-compared net borrowing envisioned by the developing countries, rather than to prices of manufactured ex- Baker Plan of 1985,which called to lead it. In light of the con- ports, the oil price index actually for a combination of increased tinuing constraints on growth in declined by 57 percent. Further, official support, adoption of ad- developing countries, it is not the oil price decline failed to justment programs in developing surprising that foreign direct in- boost growth in importing coun- countries to improve the efficien- vestment flows to capital im- tries sufficientlyto prevent a cy of their economies, and in- porting developing countries slowdown in the rate of growth creased lending from the com- have not increased since 1983, of world output. In the case of mercial banks. and remained at around $10 bil- developing countries, oil import- The total outstanding debt of lion in 1986. ers showed only a marginal in- all developing countries, when The flow has been main- crease in their GDP growth rate, measured in the original cur- tained, in part, by a continuing from 5.5 percent in 1985 to 5.7 rencies of disbursements, in- interest of investors in opportu- in 1986 while the gross domestic creased only about I percent in nities in Asia. Some countries in product of oil exporters declined 1986 (if, however, all the debt is Africa, on the other hand, are by 1.1 percent in real terms. expressed in US dollars at the experiencingdisinvestment by Likewise,the decline in inter- end-of-year exchange rates, the direct investors. An increasing national interest rates-the .resultingincrease is 4.3 percent component of the direct invest- three-month London Interbank reflectingthe revaluation of ment flow, particularly to Latin Offered Rate (LIBOR) fell from loans in currencies other than American countries, has been 81/4 percent in late 1985 to the US dollar). The steady de- made through the use of the about 61/4percent in early 1987 cine in new commercial lending, debt/equity swaps. This is a me- -benefited developing coun- evident since 1981, continued chanism by which foreign banks tries, but the real burden of the and net transfers to developing either sell loans at a discount, to foreign debt was not eased for countries remained negative: de- investors who receive repayment many countries, because prices veloping countries reporting to in local currency which they use of their exports fell significantly, the IBRD Debtor Reporting to make equity investments in more than fully offsettingthe in- System (109 countries) paid out local companies, or make the terest savings on debt service. $30 billion more in interest ser- conversion themselves. This was particularly the case vice than they received in the Debt/equity swaps can be for most exporters of primary form of net disbursements of used as a vehicle for both for- commodities as continued weak long-term loans from both pri- eign direct and portfolio invest- external demand, increased sup- vate and official sources. While ment. The actual flow of such plies of agricultural commodities disaggregated information from conversions is affected by many (record harvests in 1986), and 1986 is not available, indications factors, including the willingness continued overcapacity in the are that the recent regional pat- of governments to permit such minerals sector exerted down- tern of commercial bank lending transactions, the portfolio and
7 direct investment opportunities the weakness in non-oil primary the five main western industrial available for such conversions, commodity prices relative to countries (France, Federal Re- and the willingnessof external that of manufactured exports. public of Germany, Japan, debt holders to sell their debt at These countries had a third con- United Kingdom, and United a discount. It is estimated by secutiveyear of strong growth States) is projected to be 2.3 per- IFC that in five countries (Ar- with GDP increasing by 7.0 per- cent, about the same as in 1986. gentina, Brazil, Chile, Mexico, cent in 1986. Relatively modest growth in and the Philippines),total debt the industrial countries will inhi- converted so far through the Short-TermProspects bit both the volume of exports swap mechanism has amounted Prospects for world economic of developing countries, and re- to about $4 billion, or a little growth are not expected to im- covery of prices of commodities less than 2 percent of total debt prove much, if at all, in 1987. on which many developing outstanding. Of this total, This less than buoyant outlook countries depend for export ear- around $2 billion may have been reflectsmainly a seriesof struc- nings. Only the oil exporters are converted in 1986. The recent tural imbalances among the in- expected to see some improve- actions by major U.S. banks in dustrial countries that will inhi- ment in their prospects in 1987 taking large provisions against bit their economic growth. The as compared with 1986. Weak their loan portfolio should signi- United States has been perhaps export prospects will make it ficantly enlarge the pool of the main source of growth in particularly difficult for the high- funds available for swap tran- the world economy in the 1980s. ly indebted developing countries sactions in the future. Now, the need to reduce fiscal to sustain the large trade sur- The continuing stagnation of and balance of payments deficits pluses needed to servicetheir capital flows to developing coun- will place constraints on U.S. foreign debt. As a result, the tries has resulted in a net trans- growth, which has been financed overall growth of developing fer of resources from developing increasingly by U.S. borrowing countries in 1987 is expected to to industrial countries. This, abroad. As a result of this bor- continue at last Year's rate, with coupled with lower prices of pri- rowing, the United States has the possibility of some improve- mary goods exports, and slow become the world's largest ment in oil exporting countries. growth in the volume of world debtor. trade (i.e., 3.5 percent in 1986, The Federal Republic of Ger- A New Envirornentfor the the same as in 1985, but well many and Japan, meanwhile, Private Sector below the average prior to are not likely to pick up the In many ways, continuation 1980),has made it particularly slack in 1987 left by reduced of growth in oil-importing devel- difficult for the highly-indebted U.S. growth. These countries oping countries at rates above countries and many of the have relied on growing exports 5.0 percent would be a signifi- poorer countries in sub-Saharan as the main basis for growth in cant achievement, considering Africa to increase their rate of their economies. As their export the impediments to growth that economic growth. Indeed, GDP prospects dim, with appreciation have been noted. A large num- growth estimates show a signifi- of their currencies and less ro- ber of countries, in the face of cant decline from 2.2 percent in bust import growth, particularly continued inadequate economic 1985 to 0.5 percent in 1986 for in the U.S., these countries will growth-and perhaps impelled sub-Saharan Africa and from have to find new sources of by it-have launched serious 3.1 percent in 1985 to 2.5 per- growth in increasingdomestic and comprehensive programs of cent in 1986 for highly-indebted consumption and investment. economic policy reform, de- countries; the latter growth rate This will require a reorientation signed to establish environments would be noticeably lower if of both policiesand the struc- more conducive to sustainable Brazil, which grew by about 8.0 ture of production-a reorienta- long-term growth. Indeed, the percent in 1986, were excluded tion that will take some time, ability of the developing coun- from the sample. By contrast, even if a decision is made now tries to maintain recent growth the semi-industrializeddevelop- to adopt a different growth stra- rates may reflect, to some ex- ing countries that export manu- tegy. As a result, there is not tent, the significantpolicy factured goods benefited from likely to be a new growth impe- changes that many of them have the combination of the fall in oil tus from industrial countries in made in recent years. In many prices, lower interest rates and 1987. In fact, GDP growth in countries-e.g., Mexico, Chile,
8 India, Indonesia, Korea, lowing major real increases in ful one, is still in its early stages Morocco-the pace of reform their prices. in several countries, and is far was maintained in the past year; In countries implementingfis- from dispellingthe burden creat- in others-most notably Niger- cal and monetary austerity mea- ed by previous misallocations of ia-policy reforms incorporating sures the resulting contraction of resources. But new investments major structural adjustment disposable income and domestic everywhere,though still very were newly launched. demand, which has forced com- modest in magnitude, are more These policy changes include petition in markets heavily pro- solidly based on comparative trade liberalization,reduction in tected against imports, has also advantages and, so far, have the scope of price controls, liber- pointed out the merits of ef- tended to concentrate in efficien- alization of interest rates, main- ficiencyand cost consciousness. cy improvements of existing taining more realistic exchange Many cost items historically re- plants (i.e., expansion/restructur- rates, and a more open, less re- garded as fixed have, in fact, be- ing/modernization). strictive environment for the pri- come vafiable; labor costs have As stated in the 1986 Annual vate sector. Increasingly in evi- proven to be more susceptible to Report, the essential element, dence, also, is a trend towards real downward adjustments than the sine qua non of successful the privatization of public enter- previously thought; traditional private sector development, has prise, one motive for which is access to subsidized "preferen- to be the local entrepreneur. It often an improvement in the op- tial" exchange rates for imports takes not only the right environ- erational efficiencyof the activity of raw material has, in many ment, but also the existence of (although other factors, includ- cases, been terminated, forcing an adequate pool of local entre- ing fiscal urgency, may also be recourse to much higher preneurship willing and able to at work). Part of the intent of unofficial/parallelexchange rate take advantage of the opportu- these policies is to give a greater markets; and, for many com- nities created by such an envi- role to the private sector in the panies oriented to domestic mar- ronment. IFC's own recent ex- economy to encourage increased kets, exports have become a vi- perience in countries which are productivity and greater efficien- able option, fosteringmajor im- implementing the adjustment cy in resource use. The ability of provements in product design, policiesdescribed above, sug- the developing countries to quality, and delivery.The short- gests that such entrepreneurs are maintain respectable rates of age and high cost of capital has indeed emerging, and that their growth in a relatively hostile ex- forced more careful business investment decisions better re- temal environment may reflect planning by raising the mini- flect the real economic advan- the first fruits of these policy mum acceptable rate of return, tages of these countries. IFC has changes. resulting in the postponement of been able to help finance eco- In these countries, many busi- many marginal projects. Domes- nomically sound export-oriented nesses traditionally geared to tic commercial banks in most of and/or import-substitution activ- highly protected domestic mar- these high-debt countries, which ities in many countries because kets, and which have benefited have suffered heavy losses and their financial viability has been from negative real interest rates have been operating under a dif- strengthened by a more realistic and other distortions, have been ficult environment of tight exchange rate regime. Examples forced by these changes to re- monetary policy, have also been involving IFC investments in- structure or face sharply declin- forced to improve their credit clude limestone quarry/process- ing levels of profitability. In this approval practices. ing and agro-industrial process- difficult process, the reduction in Overall, the increased compe- ing in Mexico, pulp and paper the ability and willingnessof tition in domestic markets, tight production in Chile, crop farm- governments to 'bail out' firms credit conditions, real increases ing in Zambia, and manufactur- in difficultiesthrough the provi- in prices of public sector goods ing of tires in Nigeria. Many sion of cheap finance and pro- and services,and increased at- companies, originally geared to tected markets has become tractiveness of non-traditional protected domestic markets, clearly evident. Likewise,subsi- export markets have forced a have now reoriented the produc- dized energy and other public new approach to doing business tion lines to meet demand from sector goods and servicesare no in these countries. Efficiencyis competitive international mar- longer a secure basis on which now more important for profit- kets. These include two auto to establish new ventures, fol- ability. The process, a very pain- parts manufacturers in Mexico.
9 New greenfieldproposals being international banking system, economic policy framework into developed in areas previously re- encouraged voluminous unmoni- sustained economic growth. It is served to the public sector in- tored capital flows into the de- important to realize that there clude construction and operation veloping world. Today, as the exist substantial domestic politi- of a commercial port and oil economic policy framework in cal risks to the implementation exploration/development in many developing countries is be- of economic liberalization poli- Argentina; similarly, ventures coming more conducive to ef- cies in many countries; in this have materialized in response to ficient resource allocation, indi- context it is critical that the im- a more liberal approach to for- cating a greater likelihood of ac- plementing governments be able eign investment, as for example, ceptable economic returns on to demonstrate, within a reason- the manufacture of watches in investment, the external environ- able time-frame, the positive ef- India. ment has remained markedly fects of their new policies. If this It is ironic that through the inhospitable. In particular, the cannot be done, the window of 1970s,when the economic policy absence of strong growth in in- opportunity created by liberali- environment in many developing dustrial countries (with its cor- zation may close. Timely resto- countries was far more likely to responding impact on commodi- ration of capital inflows for pro- stimulate inappropriate invest- ty prices and developing coun- ductive investment in develop- ment decisions, the more robust tries' exports) and the decline in ment would go far towards vali- world economic growth, net foreign capital flows limits dating the courageous policies markedly higher commodity I the ability of developing coun- many of them are now follow- I prices and high liquidity in the tries to translate their improved j ing.
10 REPORT ON OPERATIONS
.uning this past Year, -.r the Corporation has not only broadened its range of invest- ments, it has also sub- stantially extended and diversi- fied its range of activities. Fee-based services,particu- larly in connection with restruc- turing and financial packaging, have become a significant factor in IFC's operations. In the Corporation's Capital Markets activities,new portfolio investment funds were estab- lished in Thailand and Malaysia, while considerable work was done in the increasinglyimpor- tant area of debt to equity con- version. Restr-ucturing,an activity stressed in the Five Year Pro- gram, was an important aspect of this Year's operations, with particular reference to the Latin American and Caribbean region.
IN-VESTMENT REVIEW
Commitments and vestments, compared to the and $130.3 will be syndicated or Disbursements $324.8million disbursed in sold to other investors. FY86. Of this, $256.2 million The total value of the ap- During the Year IFC regis- was for loans and $71.3 million proved investmentswas $920 tered a 45 percent increasein was for equity. In addition, million, of which $793 million commnitmentssigned, totalling $165.5million was disbursed was for loans and $127 million $742 million for IFC's own ac- from participating financial insti- was for equity investments.Six- count versus $513 million in tutions in loans which the Cor- teen loans, totalling $117 million, FY86. The level of commitments poration manages. involved corporate restructuring in FY87 would have been even while $20 million of the ap- greater,but for unusually high proved equity investmentsin- loan droppage and cancelations volved the exerciseof rights is- arising from rapid declinesm in- IFC Investments for the vsuesby firms in which IFC al- terest rates. IFC is adopting new Year ready has equity investments. loan features, describedin the Fi- The Corporation estimates nancial Review, which will offer During the Fiscal Year, the that the total capital costs of the investors more market oriented Board of Directors approved 92 approved projects it will help to loan instruments. investments in 41 developing finance will be more than $4,343 During the Year, an equiva- countries. In connection with million. This means that for ev- lent of $327.5 million was dis- these approvals, it is expected ery dollar invested by IFC for bursed for IFC's account on that $789.6 million will be in- its own account, others will in- committed loans and equity in- vested for IFC's own account vest more than five dollars.
11 CumulativeIFG 1 Supplementing its loans, equi- Loan repayments amounted i I ty and quasi-equity instruments, to $257.6 milion in FY87 and Issu lEGtIFCprovided its clients with a $32.1 million of investments
1O]OGO j3 range; ofS'broad other financial were sold. Against a total of 61 servicesduring the Year. These new companies added to the included underwritings, guaran- portfolio during the Year, in 34 tees, standby arrangements and cases loans were repaid, equities ~~~GOO~~~~~swaps. For a discussion of new sold or investmentswritten off. financial instruments recently Z5(XI approvedby the Board, please Portfolio Management s tthe eFinancialRev'ie begin- The Corporation gave ning on page 38. creased attention to its portfolo S supervision and management ;j0503~~ ~ ~ ;33-~~~~e 3 00;f12svrllrg thet iew00 rbe rjcsin--l33-3$';S' during FY87, including in- 1The Portfolio Icreased attention to resolving several large problem projects. At the end of the Fiscal Year, During the Year the staff time IFC's portfolio contained loans devoted to supervision increased Iand equity investments in 404 by about one-third. The in- Loans were made at market l companies in 77 developing creased emphasis on supervision rates for an average life of seven countries. There are also two re- was designed to contain poten- to eight years and a grace pe- gional investments and one that tial problems, reverse areas of riod of four years. Maturities of was worldwide. At year-end the previous deterioration, and, in IFC's loans are set to conform total value of the portfolio was the case of the equity portfolio, with the nature and needs of i in (US$ millions): successfullyrealize attractive each project and this Year they capital gain opportunities. ranged between 6 and 15 years. Loansfor IFC's account.S.. $ 2,347 To focus the Corporation's Over 43 percent of the loans Equityfor lFC's account . .$ 409 portfolio supervision and man- approved by the Board were Totalvalue of portfolio .... S 2,756 agement better, a new Vice- priced at variable rates, with 65 Totaldisbursed. .... 1,878 Presidencyof Portfolio Opera- percent of US dollar denominat- Totalundisbursed S 878 tions was created, along with a ed loans being so priced. The agreed rates ranged from 75 to 1 In addition to disbursement 238 basis points over six-month for its own account, the Corpor- LIBOR or its equvalent, in ad- aton also administers loans on ditionto appropriatelevels of I behalf of participatingbanks o Venturest tir front-end and commitment fees. and other financial institutions. f-- The Corporation continued During the Year, IFC called and its policy of offering loans de- disbursed $165.5 million of par- | o nominated in al the major inter- ticipants' funds. national currencies. The majori- New commitments for the 20% ty of loans were denominated in I Year totalled $742.4 million. Af- X4 US dollars, in which IFC of- ter taking account of repay- i 1 fered both fixed and variable ments, prepayments, cancella- rate termns.The currency mnixfor 1 tions, sales, write-offsand ex- loans approved this Fiscal Year change adjustments, the net in- a 1 neriv ani was (in US$ millions): crease in the portfolio was mf02=0 Reed $110.1 million.This net incre- Ielreehermcals i t'S doilars...... $ 580.71 ment reflectsan increasefor 4 Tm andServices Deutschemark .S 109.15 IFC's account of $93 million in Ceme en Sif Sw'is francs S 41.74 loans and $17.1 million in equi- | - flnance Dutch Guilder .... S 25.24 ty. The portfolio managed for s Otherarin§ French francs ..... S 12.25 participants decreased by $14.8 Other currencies . $ 23.82 million during the Year.
12 new Portfolio Operations Sup- The historical write-off record equity markets and because a port Unit. These organizational by the Corporation remains very number of equity investments changes, together with efforts by good. In the 31 years since IFC had reached maturity, the Cor- the staff of the Corporation's was founded, write-offstotal poration was able to realize con- Investment Departments, contri- only $83.8 million, compared to siderable capital gains through buted to improvement in several cumulative disbursements of the sale of selected equities. Dur- key measures of portfolio per- $3,324 million. Historically, loan ing the Year, $32.1 million of formance. The number of prob- losses have been 1.2 percent of equity was sold from the portfo- lem loans, for example, was re- disbursed loans and equity losses ho, which produced a net contri- duced during the Year and the have been 9.5 percent of dis- bution of $40.9 million to corpo- equity portfolio showed a strong bursed equity. rate income. improvement toward higher po- Consistent with IFC's policy tential capital gains. Loss re- ReserveAgainst Losses of encouraging and broadening serves as a percent of the port- The Corporation follows a local ownership in the private folio also declined for both the prudent policy of establishing a sector, most of the portfolio loan and equity portfolios. reserve on each investment as sales were undertaken in the Reducing non-accruals and soon as recovery is judged to be countries where the investments realizing recoverieson IFC in- doubtful with a corresponding were located. vestments is a complex task re- charge against income. The net quiring significanttime and spe- increase in the reserve for FY87 cial expertise. A number of of $20.1 million brought the to- Fee Services to Investors companies have faced problems tal reserve to $197.8million or that cannot be quickly resolved, 10.5 percent of the disbursed While the Corporation has al- such as country foreign ex- portfolio. This year end reserve ways provided technical advice change and debt serviceburdens; percentage compares favorably and assistance to its clients, there weak management; and chang- with the prior year level of 10 has been increasingdemand for ing markets for company prod- percent. servicesbeyond the scope of ucts and services.Such cases normal investment work. Ac- have required special, tailor- PortfolioSales cordingly, the Corporation has made solutions to be developed, Taking advantage of strong developed a number of fee-based negotiated and implemented. The Corporation's Special Oper- ations Unit, which had been es- tablished to address such major : problems,was fullyorganized at .pproved byBusiness Sector. Fiscal Year 1987 year-end,reporting to the Vice NUMBEROF NvEsTMrs AMOUNTQF INVESTMENT President of Portfolio Opera- 100% fOO% tions. The special efforts of that Unit involved successfulwork- 30% 8 30% 7 out of five problem projects. . In those caseswhere correc- 20% -7 20%1./ tive action no longer seemed 3 2 possible,the Corporation wrote j - 2 3 St i 3 offthe investment so that staff 4 . - R S supervisionwould be directed -75C only to those projects with the I FIerCNeml s : ., .,. ,* ~~~~~~~and Rwochemikals.: and Petrochemicals possibility of recovery. The 2 Cement and Steew 2 Cement and Seel write-offs,which increased from 3 Energyard Mnerals 3 Energyand Mtnera - 4 VMxao,Pitp endPaper 4 ftod, Pulp and Paper $18.1 million in FY86 to $31.9 4 Tori arnndServies 5 Tourrsend Services millionin FY87 on 21 invest- 6 Agnbusatnes 6 Agrinbsinee 7 Capital Marketsa 7 Capital Market ments, were mainly for loan and Finan6iatServicee FirnanciatSerelce equity investments on which full 8 ther Manlacoturin E 8 OthefManutacturIn loss reserves had been estab- lished in prior years.
13 serviceswhich during FY87 ge- nerated income of $9.1 million for the Corporation. These ser- vices fall mto two categones: ser- vices in connection with regular IFC investments, and free- standing financial advice pro- vided on a market basis to pri- vate sector clients. Fee-based servicesto existing clientsinclude project structur- ing, appraisal and financial packaging, while free-standing services include financial diag- i L nosis, restructunrng,strategies and packaging. In some cases, free-standing servicesmay be provided to existing clients or may be preliminary efforts which may eventually lead to IFC investment in a project. These activitiesare in addition in 39 countries and there was of the total value of approved to the fee-based servicespro- one that was global in scope. investments. vided by the Foreign Investment In FY87, investments were The flow of approvals varies Advisory Service discussed else- approved for the first time in considerably by region. In Latin where in this Report. two countries-Hungary and American, the number of ap- Togo. Of the total approved in- provals increased slightly, al- vestnents of $920 million, 36, though the dollar value of those Where IFC Invested with a total value of $275mril- approvals increased substantial- lion, were located in countries ly. In Africa, there was also an The 92 projects approved by with a per capita annual income increase in the number of ap- the Board of Directors during of less than $800. These invest- provals, but the value of those the Year were located in 41 ments accounted for 39 percent investments was lower than last countries. During the previous of the investments that IFC ap- year, reflectingthe trend towards year, 85 investments were made proved this Year and 30 percent smaller projects. In Europe and the Middle East, the number of approvals remained the same as last year, but the value of those investments was lower. In Asia, ~~~ ~~the need for IFC assistance was ~~~~ o~~ tempered in some countries by highly aggressivelending from commercial banks and in others by governimentdecisions to re- duce foreign borrowing.
1 T Rnge olEt ti Wl 0 i 4 ; @ .t~~~~~~~~~isttuiosbu di owt
14 EIetetst view to the priorities and cir- Sources of Financing and cumstances of the individual nersipOwnerstup InIFO westnent member countries. Fsca Year1987 Investments in food process- IFC estimates that 52 percent - ing and agribusiness remained a of the total project financing of major factor in the Corpora- investments approved this Year tion's business this Year with 13 will come from sources in the - ventures amounting to $64 mil- countries where the projects are lion. Manufacturing was also an located. Most of the foreign important sector, with 25 invest- funds involved were in the form 20 l ments totalling $213miflon, of suppliers' credits or funding compared to $185 million in from international sources. FY86. Some 105 companies from in- M4nsharwsktn oly Capital Markets proJectSwere dustrialized countries and 14 i'Md ,bfk, particularly significantin FY87, from developing countries also i a1bty ta owd (prW.%,) with 12 projects totalling $97 participated in one form or an- nmllion. other in business ventures that The range of sectors repre- were supported by IFC during sented by investments approved the Year. by IFC's Board in FY87 reflects Of the investments approved the increasingdiversity of the in FY87, 40 were in wholly pri- Government-related financial projects undertaken by the Cor- vately owned enterprises and 51 institutions in industrialized poration. They included: vateyoenerpiend countries specializingin assis- Agriculture vin ixed private/government tance to private enterprises in Amrmonia ventures developing countries are expect- Chlorine ed to provide approximately Fertilizer $228.0million of investments Financial institutions approved by IFC during the Food processing Year. These institutions included Glass the German Finance Company Hospitals for Investment in Developing Motorcycles Countries (DEG), the Common- Oil exploration wealth Development Corpora- Palm oil tion of the United Kingdom, the Pharmaceuticals European Investment Bank, Pulp & paper Exim-Bank of Japan, France's Shipping Caisse Centrale, the Netherlands Telecommunications Finance Company for Develop- Textiles ing Countries, the Export-Im- Tourism port Bank of the United States, Trucks the Industrial Fund for Devel- Shoes oping Countries of Denmark Watches (IFU), the SwedishExport Wood processing Agency and Swedfund.
15 II= 3
AFRICA motionalrole in encouraging missionwas successfulin identi- new privateinvestment in sup- fyingseveral business opportuni- During FiscalYear 1987,the port of higherlevels of economic ties and establishingcontact with Board of Directorsapproved growth. As an example,IFC ar- the businesscommunity. loans and equityinvestments to- ranged for a US$50million syn- During the Year,the Corpo- tailing$130.6 million for 23 dicated loan withcommercial ration was instrumnentalin struc- businessventures in Africa.Of banks to Credit Immobilieret turing and has approvedinvest- the financingapproved, $120 Hotelier(CIH), Morocco'swell ment of $2.1million in millionwas for loans and $10.6 respectedtourism and housing SORWALin Rwanda,a joint millionfor equity. developmentbank. The loan venturebeing set up with a pri- At the end of the FiscalYear, was one of the firstinjections of vate internationalgroup to take the Corporationheld $575mil- new untiedfunds in the country over and modernizea previously lion in 114ventures in 32 coun- followingMorocco's reschedul- Government-ownedmatch fac- tries in the region:about $512 ing of its debts. It not onlyde- tory. The newlystructured en- millionin loans and $63 million monstratedrenewed confidence terprise,with the benefitof im- in equity.This compareswith of the financialcommunity in proved management,will be ca- IFC investmentsin 103ventures, the Moroccaneconomy but also pable of fullysatisfying local de- with $421 millionin loans and providedCIH with much need- mand, and of exportingto $59 millionin equity,at the end ed funds to support furtherde- neighboringcountries. of FY86. velopmentof the country'stour- IFC has approvedfinancing ism industry.The Corporation in Nigeria for Dunlop Nigeria has also conductedits first pro- IndustriesLimited (DNIL). Approvals motion missionto Beninsince IFC's loan of $12.5million will the countryjoined IFC as a new cover a substantialpart of the IFC continuesto play a pro- memberin February,1987. The foreignexchange cost of a ma-
16 IFC FY87 Investmentin Africa
IFC Project Company Country Type of Business Investment Costs (US$ millions) Verreriesdu Burundi S.A.R.L. Burundi Glass Containers .25 4.70 Prestige Bottling Company Cameroon Glass Containers 3.02 7.80 Omnium Chimique et Cosmetique, S.A. Cote d'lvoire Food and food processing 2.10 4.90 Societe des Industries Alimentaires et des Produits Laitiers de C6te d'lvoire C6te d'lvoire Food and food processing 3.71 13.30 The Keta Basin Onshore Oil Exploration Ghana Energy and mining 4.50 30.10 Societe Guineenne de Granits Guinea Mining .11 .40 Agro Development Company Ltd. Kenya Agribusiness 1.25 5.60 Development Finance Company of Kenya, Ltd. Kenya Development financing 3.75 41.00 Societe Textiles de Majunga, S.A. Madagascar Textilesand fibers 3.70 11.20 Viphya Plywood and Allied Industries Limited Malawi Lumber .93 1.80 Credit Immobilier et Hotelier Morocco Development financing 50.25 392.00 Settat Filature, S.A. Morocco Textiles 4.61 18.00 Dunlop Nigerian Industries Limited Nigeria Rubber tires 12.50 36.60 Food Specialties(Nigeria) Ltd. Nigeria Food and food processing 7.50 15.20 Societe Rwandaise des Allumettes Rwanda Manufacturing 2.15 7.40 Pan Atlantic Textile Company Togo Textiles 8.08 29.70 SocieteTogolaise de Siderurgie, S.A. Togo Reinforcing bars .85 2.00 Comete Engineering Tunisia Consulting services .04 .26 Rozzi Edilizzia Industrializzata Tunisia Tunisia Construction materials 1.90 9.90 Compagnie de Developpement Rural du Haut-Zaire Zaire Textiles .19 9.20 Utexafrica Group Zaire Textiles 13.03 35.20 Gwembe Valley Development Company Limited Zambia Agribusiness 4.50 13.50 Zambia Cashew Company Limited Zambia Food and agtibusiness 1.45 4.00 Sub-total 130.37 693.76 Africa capital markets investments(see page 30) .22 1.60 TOTAL 130.59 695.36
jor expansionproject to in- 30,000tpa palm oil processing In addition,IFC's Board ap- crease production capacityto plant. The company,which is proveda $4.5 millioninvestment alleviatethe present shortage of 100 percentIvorian owned,is al- in GwembeValley Development tires in Nigeria. The project will ready a successfulmanufacturer Company Limitedin Zambia. enablethe Company to reduce of soap products.The start-up This new commercialfarming unit costs, and-coupled with of another agro-industrycom- venturewill producecotton and the impact of the recent deval- pany in CMted'Ivoire, SIALIM, groundnutsfor exportand uation of the Naira-to pro- was aided by an investmentof wheat for localconsumption, us- duce at internationallycompeti- US$3.7million by IFC. ing modern centerpilot irriga- tive prices. SIALIM willuse importedmilk tion techniques.Another project, IFC has givenhigh priorityto powder to producesterilized Zambia CashewCompany Lim- investmentsin agriculturaland milkyoghurt and ice cream.A ited, in whichIFC has approved food productionin Africa.Proj- large portion of the equity for an investmentof US$1.45mil- ects in these sectors account for this investment was provided by lion, is expected to have a wide 25 percent of investmnentsap- 60 individual lvorian and other developmental impact by collect- proved for the year in the re- African investors. In Cameroon, ing nuts from small farmers and gion. Among these, IFC has IFC invested US$3.1 million in processing them for export, pro- made a US$2.10 million loan to a bottling plant which will be viding employment and cash in- an Ivorian company, COSMI- majority owned by local inves- come in a subsistenceregion of VOIRE, to help construct a tors. the country. In Kenya, $1.25
17 mnillionwill be loaned to Agro Investment Overview to help member states in Africa Development Company Limited to improve the policy frame- to produce high quality French There has been a modest im- work for foreign direct invest- seed beans for the export mar- provement in the region on sev- ment. This regional program is ket, and maize as a rotational eral fronts. The rains have re- similar to the regional effort in crop for the domestic market, turned to many countries, re- Asia and the Pacific,and will be on under-utilizedirrigated land. ducing dependence on imported financed in part by the UNDP. In Nigeria, IFC is assisting Food foodstuffs and spurring eco- The Africa Project Develop- Specialties(Nigeria) Ltd., to im- nomic growth. Decreases in oil ment Facility began operations plement a strategy of backward prices have helped many oil im- during the Year with offices in integration to increasethe use of porting countries lower their im- Abidjan and Nairobi. The local agricultural raw materials port bill. The decline of the val- APDF helps African entre- in its manufactured products. ue of the dollar against many preneurs to organize, diversify The Corporation is investing the currencies (e.g., CFAF) has also and expand their businesses.It equivalent of $7.5 million to benefited a number of countries works with these entrepreneurs help establish a malt processing with large dollar-denomninated through the entire cycle of proj- plant based on locally grown debt burdens. In addition to ect preparation. See page 32 for sorghum to replace imported these positive developments, more information on APDF. malt extract. there is a spreading movement As in the past, the textile sec- of economic policy reform tor continues to be an active through liberalization and a re- area for IFC. During the year, duction of the role of the Gov- IFC approved 5 textile projects ernment in the economy. The in Africa, representing 21 per- improved economic climate is cent of total investment in the yielding new opportunities for region. The Corporation was in- private initiative and a modest strumental in structuring, and fi- resumption of private sector nancing, the privatization and growth in Africa. rehabilitation of Togo's two larg- IFC has been active in sup- est textile mnillsby a Korean- porting these economic policy American group, Pen Africa reforms, particularly in the pri- TextileCompany. The rehabili- vatization of public enterprises. tated mills, with the benefit of a During the Year, the Corpora- Korean technical partner, will tion was involved with the priva- export African prints to the tization of textile mills in Togo West African regional market and a match factory in Rwanda, and garments to Europe and and is actively discussing similar North America. This investment ventures elsewhere in Africa. of US$8 million was IFC's first in Togo. In Zaire, IFC has approved a Regional Initiatives $13 milion loan to help mod- ernize the UTEXAFRICA In the context of its FIAS group's textile mills-at a time program, IFC has provided as- |- when the country urgently needs sistance to Ghana in formulat-| to encourage increased private ing implementary regulations for investment in support of its eco- the new Investment Code, and nomic liberalizationprogram. in reviewing operations of the IFC's participation in this proj- Ghana Investment Centre. Re- ect will be cnrticalin attracting quests for advisory assistance additional sources of finance, as have been received from several wel as in strengthening technical other countries. In response, and management aspects of the IFC has developed a three-year project. program of advisory assistance
18 ASIA Ltd. involvingtwo investments. Year,the highestfigure ever re- An IFC financialpackage of $10 corded by IFC for India in any During FiscalYear 1987,the millionin loan (including$4.5 year. The investmentsfor the Board of Directorsapproved millionsyndication) and equity Year included$15.6 million in loans and equityinvestments to- willassist P.T. Monterado Mas loans and equity approvedfor a tailing$266 million for 23 busi- Miningto developa new 17,000 new quartz analog watch plant, nessventures in Asia. Of the fi- ounce per year gold mine in the first time IFC has invested nancingapproved, $187.7 mil- West Kalimantan.In addition, in the watch industry.The Cor- lion was for loans and $78.5mil- IFC is providingP.T. Kalteng poration, through an invest- lion for equity. Mas Perdana $1.4million in ment of $37.6million in loans, At the end of the FiscalYear, equityto fund a three year gold helped financethe expansionof the Corporationheld $242mil- explorationprogram in Central an existingautomobile com- lion in 97 venturesin 12 coun- Kalimantan.Both projects pany to produce fuel efficient tries in the region:about $494 wouldcontribute to the power trains and heavy com- millionin loans and $97 million IndonesianGovernment's effort mercialvehicles. IFC also in equity.This compareswith to developits non-oil/gasminer- agreed to invest $35.6million in IFC investmentsin 95 ventures, al resources,thereby diversifying a fertilizercompany that is set- with $412million in loans and sourcesof export revenue. ting up a plant designedto use $96 millionin equity,at the end In Thailand,IFC participated its surplusammonia to produce of FY86. as a shareholderin the promo- nitric acid, ammoniumnitro- tional companyfor a petro- phosphate and calciumammo- chemicalcomplex, National Pe- nium nitrate. Approvals trochemicalCorporation (NPC), Total investmentapprovals in and has been continuingthat as- Pakistanwere $16.2million last In the East Asian region,IFC sistanceduring the developmen- Year.These included, for the approvedtwo China-relatedin- tal phase.The complexis now first timein Pakistan,an invest- vestments.The first is a $5 mil- beingconstructed and IFC is ment of $4.3 millionto take up lion loan to the China Shenzhen helpingto financethe upstream a 25 percentworking interest in BicyclesCo., Ltd., the firstma- olefinsplant, NPC, with a an oil explorationventure and a jor bicycleexporter from the $20 millionsubordinated loan. loan of $5 millionequivalent to People'sRepublic of China IFC is also aidingthe down- a major tractor manufacturing (PRC),to assistan expansionof stream polypropyleneplant, companyfor on-lendingto its capacityfrom 400,000to 1 mil- HMC PolymersInc., with a to- ancillarymanufacturers. The lat- lion bicyclesa year.The second tal financialpackage of $39mil- ter projectadapts to an industri- investmentis a $3 millionequity lion, part of whichwas syndicat- al companythe smallbusiness and quasi-equitycommitment to ed. The complexwill enable creditline concept already devel- J.F. China InvestmentCompany Thailandto optimizethe utiliza- oped by IFC in associationwith Limited(CIC) Hong Kong, a tion of its natural gas deposits financialinstitutions. projectpromotion and invest- by producinghigh valueprod- ment company sponsoredby ucts. Jardine Flemingof Hong Kong. The agribusinesssector in InvestmentOverview IFC's investmentin CIC, which Thailandcontinues to be a will concentrateon smallto priorityin IFC's objectives.The The climatefor privateinvest- medium-sizedjoint venturesin Surat Thani Oil Palm project, ment continuesto improvein the PRC, wouldcomplement consistingof oil palm planta- SouthAsia. Recentbudget ac- IFC's own effortin largerproj- tions and a palm oil mill,will tion by the Governmentof ects to acceleratethe transfer of contributeto the country'sagri- India has continuedthe aims of technologyand management cultural diversificationgoals. a fiscalpolicy adopted in 1985 know-howto the PRC through The projectis being assistedby encouragingprivate investment variousforms of Sino-foreign IFC with financingof $4.6mil- with a program of lower taxes cooperation. lion, includingequity and loan. and simplifiedmeasures for ap- In Indonesia,IFC's Board ap- In the South Asia region, ap- provinginvestments. The Gov- proveda gold projectsponsored provals of investmentsin India ernment'saction is also begin- by BP MineralsInternational rose to $91.6million in the last ning to attract a larger number
19 -FC FY87 Investmentin Asia
IFC Project Company Country Type of Business lnvestment Costs rd (US$ millions) China Investment Company China Development finance 3.04 20.30 Shenzhen China Bicycles Co. Ltd. China Manufacturing 5.00 17.70 Gujarat Narmada Valley Fertilizer E Company Limited India Fertilizer 35.63 182.20 Hindustan Motors Limited India Motor vehicles 37.64 299.70 Indian Rayon Corporation Lirnited India Rubber tires 9.40 28.60 Titan Watches Limited India Analog watches 15.59 51.10 BP Minerals International Indonesia Gold mnining/exploration 11.40 26.40 PaT.Semen Andalas Indonesia Indonesia Cement 1.50 18.00 Chonju Paper Manufacturing Co. Ltd.* Korea Pulp, paper and timber .17 3.00 Gold Star Company Ltd. Korea Manufacturing 1.88 33.90 Milkpak Limited* Pakistan Food and food processing .05 .69 Millat Tractors Limited Pakistan Tractors 5.00 25.00 Packages Limited Pakistan Pulp and paper/Utilities 6.75 12.80 Packages Limited* Pakistan Pulp and paper .17 1.95 Thatta Block Exploration Project Pakistan Energy and mining 4.26 16.90 HMC Polymers Company Limited Thailand Chemicals and petrochemicals 39.15 83.00 National Petrochemical Corporation Thailand Chemicals and petrochemicals 20.00 293.00 Phansrivivat Co., Ltd. Thailand Agribusiness 4.66 23.50 Siam City Cement Co. Ltd. Thailand Cement 1.36 18.50 Sub-total 202.65 1,156.24 Asia capital markets investments (see page 30) 63.61 381.70 TOTAL 266.26 1,537.94 j * As a rights issue below $250,000, this investment is not included in the Etotal number of approved investments given on page 19.
of foreigninvestors interested in that both the number and to continueits positivebalance technicalcollaboration or in set- amount of new foreigninvest- in the comingyears. This perfor- ting up joint venturesin the ment approvalsin 1986were mance has minimizedthe coun- country. down, primarilydue to a shift in try's need for foreignlending to Governmentmeasures in investmentemphasis away from projects.Large groupsare able Pakistanto deregulateprices of the serviceand tourist sectors. to raise financingreadily and on a large number of commodities, Investmentsin the fieldsof in- favorableterms. Small and med- create a more liberal environ- dustry, agriculture, transport ium scale companies receive ment for private initiative, devel- and telecommunications,howev- strong financial support from op the capital market, and ra- er, continue to attract substan- Government institutions. Com- tionalize the tariff structure, tial foreign interest. In October panies between the two groups have proved encouraging for the 1986, the central government is- would no longer have the same private sector. Private investment sued a 22-point package which degree of Government support initiativesremain most prevalent provided further clarification of and are not likely to be large in small and medium size indus- regulations with respect to land enough to have ready access to tries, reflectingan element of use fees and labor costs, etc. It financial resources. IFC has be- caution caused by continuing also provided further incentives gun to take the initiative to iden- problems in Afghanistan and and greater flexibilityon foreign tify such companies with good political uncertainties in exchange balances of joint- growth potential with the objec- Pakistan. venture enterprises, particularly tive of providing equity capital if China continues to pursue its for export-oriented or high tech- needed. "open-door" policy with regard nology investments. The investment outlook for to foreign investment, even Korea realized its first trade Thailand is good. Thailand's though preliminary data show surplus in 1986 and is expected economy is showing a strong re-
20 bound from the previous years' litical changes and favorable Regional Initiatives relatively slow growth, and a dy- economic development have namic private sector and the served to contribute to a signifi- An extensive program of ad- growing importance of manufac- cantly improved investment cli- visory assistance on foreign di- turing create attractive opportu- mate in the country. In mid- rect investment matters has been nities for investors. 1987, the government reached developed during the past Year. In the face of lower world oil an agreement with its foreign This program, which is part of prices and oil export revenues, commercial lenders on country overall Foreign Investment Ad- the Indonesian Government debt restructuring. Inflation has visory Service (FIAS) efforts, is adopted a reduced but realistic been brought under control and funded in part by UNDP. The budget for the country. To stim- domestic interest rates have de- objective is to assist developing ulate non-oil related invest- cined substantially. These mea- countries in the region in the re- ments, particularly in the export- sures will hopefully contribute to vision of their foreign direct in- oriented sectors, the Govern- a significantlyhigher level of in- vestment policiesand institu- ment also implemented trade vestment in the coming years, tions. In China, a seminar was liberalization measures and, in both in new projects and in the organized to review a number of October 1986, introduced a rehabilitation of existing com- key policy issues in light of IFC package of liberalized invest- panies that had been seriously experienceand the experience of ment regulations and incentives. hurt by the country's past eco- selected host countries. Assis- In the Philippines,recent po- nomic problems. tance was also provided in the
21 preparation of a new law on sisted the government of Malay- efforts to identify appropriate in- contractual joint ventures, and sia in reviewing the operations vestment opportunities. A num- the discussions are continuing to of the Sabah Forestry Industry, ber of ventures in high technol- identify further areas of assis- a major pulp and paper mill lo- ogy areas, and with export po- tance. In Thailand, IFC has cated in Sabah, East Malaysia tential, are under discussion. been helping the Government to with a view to eventually priva- IFC is also prepared to consider review its investment incentives tizing the company. equity investments in existing and the role of the Board of In- IFC has decided to establish a companies that need to be vestments. In Bangladesh, work regional rmissionin Bangkok, strengthened or expand its equi- has commenced to review the Thailand to better serve the ty base. investment climate and identify needs of a growing economy. IFC's efforts in the region's obstacles and pitfalls to an in- The office is expected to keep other countries, Nepal, creased flow of foreign direct in- close contacts with the private Bangladesh and Sri Lanka, in- vestment. The evaluation of rela- sector and enable IFC to react clude several initiatives to assist tive roles of private foreign and faster to opportunities for pro- in the privatization of public sec- domestic investors to the post- moting investments. tor industries and in providing harvest serviceindustries in the IFC is increasing efforts to financial advisory servicesto Philippines has been completed. add to its equity portfolio in the larger projects having both Gov- IFC is helping the Government Asian region, particularly in In- emnmentand private investor in-, of Malaysia to improve its tech- dia and Korea. To this end it volvement. Substantial attention niques for evaluating foreign in- will consider substantial minori- is also directed to devising reme- vestment proposals. ty equity positions in startup en- dies for projects in financial dif- During the Year, IFC also as- terprises, and is expanding staff ficulty.
22 EUROPE AND THE In Hungary,IFC invested gion this Yearhas been the in- MIDDLE EAST with$11.2 Japanesemillion in and a joint Hungarian venture creasingthe economiesinternationalization of a number ofof intereststo build an L-Lysine countries.In somecases this is Approvals plant. L-Lysineis an essential accompaniedby increasingreli- protein used in feed supplements ance on pnivatesector initiatives During FiscalYear 1987,the for pig and poultry production. and reductionof government Boardof Directorsapproved Also in Hungary,the Corpora- ownershipin commercialenti- loans and equityinvestments to- tion willinvest up to $5 million ties. Portugal,for example,has tailing$98 millionfor 9 business in anotherjoint ventureto man- seena significantincrease in for- venturesin Europeand the Mid- ufactureglass wool for insula- eign investorinterest, not only dle East. Of the financingap- tion. by corporateinvestors pursuing proved,$91 millionwas for loans Turkishinvestments during specificprojects, but also on the and $7.3million for equity. the Yearinclude an $11.5mil- part of institutionalinvestors At the end of the Fiscal Year, lion equivalentloan to Anadolu seekingnewly available securities the Corporationheld $675 mil- Cam SanayiiA.S. to help the in the Portuguesecapital mar- lion in 68 venturesin 11 coun- TurkiyeSise ve Cam Fabrikalari ket. For example,the investment tries in the region:about $605 Group modernizethree glass- companyfinanced by IFC, millionin loans and $79 million making companiesand establish BancoPortugues de Investimen- in equity.This compareswith a new packagingmaterials plant. to, went public duringthe Year IFC investmentsin 58 ventures Continuingits growingin- and its shareshave been widely with $375million in loans and volvementin Yugoslavia,IFC sought by both Portugueseand $54 millionin equity at the end agreedto providea $50.5mil- foreignshareholders. IFC sold of FY86. lion loan to Vojvodjanska someof its sharesin that com- In Jordan, IFC made a $2.2 Banka-UdruzenaBanka to help pany to Sanwa Bank of Japan millionloan to Al-HikmaPhar- financethe foreignexchange re- at the time the company'sshare- maceuticalsto help financean quirementsof 27 export-oriented holdingwas broadened. expansionof productioncapaci- industrialprojects. Turkeyis increasinglylooking ty, whilein Egypt the Corpora- outward-particularlyto tion made an equity investment Europe-and continuesto pur- of $100,000in a joint venture Investment Overview sue well-designedpolicies to at- engineeringconsulting firm with tract foreigninvestors. These pol- BechtelEgypt S.A.E. A significanttrend in the re- iaes, plusTurkey's penetration in
IFC FY87 Investmentin Europeand the Middle East
IFC Project Company Country Type of Business Investment Costs (US$ millions) BechtelEgypt S.A.E. Egypt Consultingservices .10 1.00 HungarianGlass Works Hungary Constructionmaterials 4.83 20.40 A Joint VentureCompany Hungary Animalfeeds 11.25 45.00 Al-HikmaPharmaceuticals Jordan Pharmaceuticals 2.19 5.80 B.P.I.-Banco Portuguesde Investimento,S.A.R.L. Portugal Developmentfinancing 10.00 20.00 TurkiyeSise ve Cam FabrikalariGroup Turkey Glass 11.48 27.10 InstitutZa FizikalnuMedicinu I Rehabilitaciji-Dr.Simo Milosevic-Igalo Yugoslavia Physicalmedicine center 4.81 8.80 VojvodjanskaBanka-Udruzena Banka Yugoslavia Exportproject financing 50.46 102.90 Sub-total 95.12 231.00 Europeand Middle Eastcapital markets investments (see page 30) 3.14 20.00 TOTAL 98.26 251.00
23 export markets for a wide range workers in that area, which in I key's singlelargest exporting of manufactured products, has turn has created particular prob- company. resulted in increased capacity uti- lems for other countries in the Given the increasing interest Irlizationin industry and these are region. Egypt, Jordan anda the in, and need for, foreign invest- clear signs of increased private Yemen Arab Republic, for ex- ment in the region, the Corpora- sector investmentactivity. Turkey ample, were particularly hard hit tion has participated in various has also made headway in its ef- by these developmentsand the international forums with the forts to establish processesby contracting sectors in Yugoslavia goal of stimulating foreign inves- which the state can divest some and Turkey have also been af- tor interest. In FY87, IFC parti- of its shareholdingsin commer- fected. cipated in meetings on Hungary, cial entities. Yugoslavia,and Turkey. In the Hungary, one of IFC's newest case of Yugoslavia, the Corpora- members,is taking very prag- Regional Initiatives tion is providing specificassis- matic steps to adopt policiesto tance to the Govermmentof that facilitatejoint ventures; the coun- Most countries in the region country which is seeking ways to try is particularly interested in ac- face balance of payments prob- improve the regulatory frame- quiring technology and new mar- lems; thus, the need for projects work governing foreign invest- kets abroad. In this, IFC's first that generate foreign exchange is ment. year of operation in Hungary, critical. With this in mind, in IFC maintains two offices in the Corporation has been able to FY87 IFC undertook two proj- the region, one in Istanbul and finance two projects to be carried ects with high foreign exchange the other in Cairo. The Istanbul out through joint ventures. earning capacity in Yugoslavia. office is relativelynew and fo- Virtually all the countries in In Jordan, where the pharma- cuses on the Turkish market, the region are still facing difficul- ceutical industry has made im- while the Cairo office deals with ties stemming from the decline pressive strides in exports, IFC a number of countries in the in oil prices. Reduced invest- made an investment involving area. One objective for the com- ment activity in the Persian Gulf one of the most dynamic export- ing year is to use IFC's presence countries has led to a reduction ers in that industry. Similarly, in in Cairo as a promotional tool in the contracting business and Turkey, the glass sector project for business in Egypt and other the employment of foreign financed by IFC belongs to Tur- neighboring member countries.
24 LATIN AMERICA Approvals Yucatanto the US Gulf Coast. AND THE The partnersof this $150million CARIBBEANvLrvC-AR1)TDIBBEAN 1iTIn ribbeanthe I Latinregion America(CLI), theand Cor- Ca- Mexicoventureandare Grupo Vulcan IcaMaterials of During FiscalYear 1987,the poration undertook 13 invest- Co. of the US. Two projectsin BoardinfDiretscl Yeapprohed ments in six countries,with the Mexicoare in the automotive Board of Directorsapproved majorityin Mexico,Colombia sector:Metalsa for the produc- loans and equityinvestments to- and Venezuela.Total invest- tion of stampings,and Spimex tailing$410 million for 36 busi- ments amountedto about $106 for the productionof piston ness venturesin Latin America million,a substantialincrease rings.Both projectswill supply and the Caribbean.Of the fi- over last year. the export-orientedengine and nancingapproved, $394.4 mil- The Corporationundertook car assemblyplants in Mexico. lion was for loans and $15.4mil- 22 investmentstotalling $378 Other activitiesin Mexicoinclud- lion for equity. millionin the Latin America ed a projectfor the production At the end of the Fiscal Year, and CaribbeanIl (CL2)Region, and exportof micronutrientsfor the Corporationheld $908mil- a substantialincrease over the the agriculturalsector (Sulfamex), lion in 126ventures in 21 coun- 15 investmentstotalling $276 and the restructuringof the tries in the region:about $2,584 millionmade by IFC during Univasa/Casapoultry group. millionin loans and $170million FY86. In Brazil,IFC approvednine in equity.This compareswith In MexicoIFC is providinga investments.These included ap- IFC investmentsin 115ventures, $37million loan and guarantee proval of corporateloans to with $663million in loans and facilityto a Mexican/USjoint four of Brazil'slargest industrial $168million in equity,at the venturefor the export of con- groups,Alpargatas (textiles and end of FY86. structionaggregates from the clothing),Perdigao (pork and
25 IFC FY87 Investmentin Latin America and the Caribbean
IFC Project Company Country Type of Business Investment Costs (US$ millions) Arcor S.A.I.C. Argentina General manufacturing 12.00 55.90 Banco Rio de la Plata, S.A. Argentina Development financing 30.00 30.00 Juan Minetti S.A. Argentina Cement 8.00 25.70
=S.A. Garovaglio y Zorraquin Argentina General manufacturing 17.00 83.00 The Chirete/Morillo/Olleros Oil .' Exploration Program Argentina Oil exploration 5.20 33.00 Terminal 6 S.A. Argentina Port facilities 5.50 22.00 Grand Bay Beach Resort Barbados Tourism 1.25 5.00 Compania Minera Concepcion S.A. Bolivia Energy and mining 1.20 4.50 Amapa Florestal e Celulose S.A. Brazil Pulp, paper and timber 14.00 72.00 Duratex S.A. Brazil Particle boards 7.37 29.40 Fabrica Carioca de Catalisadores Brazil Petrochemicals 20.50 84.90 Mineracoes Brasileiras Reunidas Brazil Energy and mining 20.00 82.00 Perdigao S.A. Comercio e Industria Brazil Food and food processing 20.00 136.80 Petroquimica Triunfo S.A. Brazil Chemicals and petrochemicals .05 .80 Polisul Petroquimica S.A. Brazil Chemicals and petrochemicals 1.00 1.00 PPH-Companhia Industrial de Polipropileno Brazil Chemicals and petrochemicals 12.40 52.70 Sao Paulo Alpargatas S.A. Brazil Textiles, Shoes 30.00 184.40 Cape Horn Methanol Ltd. Chile Petrochemicals 45.00 305.00 *. Celulosa Arauco y Constitucion S.A. Chile Pulp, paper and timber 15.00 64.50 Enka de Colombia, S.A. Colombia Textiles and fibers .56 2.20 Frigorificos Colombianos S.A. Colombia Food and food processing .55 2.20 Productos Derivados de la Sal, S.A. Colombia Chemicals and petrochemicals 7.18 29.40 Promotora del Gasoducto Central S.A. Colombia Services .07 .50 Scott Paper Company de Costa Rica, S.A. Costa Rica Pulp and paper products 1.80 6.00 Compania Financiera Ecuatoriana de Desarrollo S.A. Ecuador Development financing 4.07 30.00 Los Lilenes Ecuador S.A. Ecuador Gold mining 17.40 55.00 Promoteurs et Investisseurs Associes, S.A. Haiti Food and food processing .22 2.10 _1 The Crescent Market Aggregates Project Mexico Construction materials 37.00 150.10 DESC, Sociedad de Fomento Industrial, S.A. de C.V. Mexico Food and food processing 6.17 24.50 Industrias Sulfamex, S.A. de CV. Mexico Fertilizer 2.50 8.50 Metalsa, S.A. Mexico Automotive parts 5.00 17.00 The Sealed Power Mexico Export Expansion Project Mexico Automotive parts 9.00 27.50 C.A. Venezolana de Cementos Venezuela Cement 37.60 125.10 Sub-total 394.59 1,752.70 Latin America and Caribbean capital markets investments (see page 30) 15.15 30.80 TOTAL 409.74 1,783.50
poultry processing), Duratex and chemical/petrochemicalin- development of a major new gas (laminated boards) and CAGMI dustries, and one investment was pipeline from the north coast to (forest products) to help finance made in a major polyethylene Barrancabermeja and Bogota; medium term expansion and producer. an additional investment in modernization investment pro- In Colombia, IFC approved Enka de Colombia; and the fi- grams for a number of the investments in four projects: in nancial restructuring of Colfri- groups' plants and facilities.In Prodesal, a venture to produce gos with the active involvement addition, three loans were made caustic soda and chlorine pri- of various Colombian financial to assist in the financing of new marily for the paper industry; in institutions. projects or expansions in mining a promotion company for the In Bolivia IFC approved an
26 investmentin a plant to extract the firstmajor privateinvest- be generallycautious, but en- silverfrom mine tailingsthrough ment in that country'smining couragingsigns are more evident the introductionof new heap sectorin recenthistory. The than before.This is particularly leachingtechnology from which projectwill introduce modem al- true in Mexico,Colombia and future possibleprojects in this luvialmining technology and is Venezuela,where the focusis on area may arise. expectedto be a model for the director indirectexport-related IFC approvedits first invest- developmentof additionalnew projectsand on modernizations ment in Venezuelasince 1975-a projectsin this area. IFC also and expansions,in order to im- major contributionto the expan- providedfinancing to a private prove competitivepositioning in sion of C.A. Venezolanade Ce- developmentfinance company both national and international mentos' cementproducing ca- and helpedto mobilizea major markets.The sectorsincluded pacity in whicha guaranteefa- fundingpackage for that institu- are raw materialand miningex- cilityof $27 millionequivalent tion. ports, export of manufactured will be establishedfor a local goods, gas-basedpetrochemicals bond issue in additionto a and fertilizers,agriculture, tour- $10 milliondirect loan. Investment Overview ism, and economicallyviable im- In Argentina,IFC provideda port substitutionprojects. creditline to one of Argentina's After an initiallysuccessful In Argentina,the Australplan largestprivate commercial banks implementationof the Cruzado has been relativelysuccessful in for on-lendingto agricultureand plan in 1986,Brazil's economic bringinginflation under control, agro-industryprojects, as wellas situationdeteriorated rapidly in improvingexternal and domestic a creditline on an agencybasis the first half of 1987.Inflation balancesand publicsector per- to financesmall- and medium- and interestrates have again fonnance.Moreover, the re- sizedenterprises. In other opera- surged to new highs,while the schedulingagreement recently tions,IFC approvedloans for strong export performanceof re- reachedwith the commercial the expansionand diversification cent yearshas been reversed. banks removesan elementof of a major food productsmanu- The temporarysuspension of in- uncertainty.Together, these de- facturer(ARCOR SAIC),and terest paymentson medium- velopmentsshould support a for the construction of port and and long-term debt to commer- continuing recovery in economic storage facilities to handle ex- cial banks and a series of performance and private sector ports for a consortium of changes in the country's eco- investment. medium-sized oilseed processors nomic management team com- Other regional developments (Terminal 6 S.A.), and assisted pounded the uncertainty as to include an increasingemphasis in the financial restructuring of a the Government's financial stra- on debt for equity swaps, agree- leadingcement company (Juan tegy.Such developmentsput un- ments with the commercial Minetti S.A.). precedented strains on the pri- banks for the reschedulingof ex- In the Caribbean, IFC has vate sector. isting loans and the provision of agreed to invest in a hotel in On June 12, 1987, the Brazili- a modest amount of new funds, Barbados(Grand Bay-Town an governmentannounced a new foreign/localprivate sector & CommercialProperties) and new economicstabilization pro- joint venturesand the relaxation completed the restructuring of a gram, which, with the measures of investment laws. These fac- poultry producer (Prinsa) in already adopted to increase ex- tors will help to improve exter- Haiti. ports and improvethe trade bal- nal balancesand increaseinvest- In Chile,IFC providedfi- ance, should serveas a solidbas- ment and economicgrowth. nancingto a major producer is for reachingan accord with its Finally,the gradualimprove- and exporterof wood pulp for creditors.If implementedwith ment in pricesof commodities the expansion and moderniza- vigor, as seems to be the inten- such as metals, grains and beef tion of one of its mills, and par- tion of the authorities, their pro- products, which are important ticipatedin the financialrestruc- gram should contributeto res- sourcesof export earningsfor turing of Cape Horn Methanol tore businessconfidence and im- much of the region,would, if Ltd. to whichIFC has an exist- prove the investmentclimate sustained,provide a further ing financialcommnitment. over the mediumterm. stimulusto strongereconomic In Ecuador,IFC approveda For the CLI region,private recoveryin the year ahead. loan to assistin the financingof sectorinvestment continued to Despitethese positivedevel-
27 opments, the region continues to long-term financing needs of typically covering both financial be burdened by a number of small- to medium-sizedprojects. and operational matters. In problems, including heavy for- In addition, the Corporation other cases (Venezuela, Colom- eign debt payments on which in- plans to expand its corporate bia, Trinidad and Tobago) IFC terest rates have recently begun lending operations to support is providing project advisory to rise, government difficultiesin the medium term investment/ services for the development of controlling public spending, as modernization programs of indi- complex new ventures, often in- well as inflation and the level of vidual firms or groups that re- volving privatization and the domestic interest rates, and quire long-term funds for an ar- negotiation of joint ventures slower than hoped for progress ray of investment activities, any with foreign investors. These in the privatization of state en- single one of which might nor- services help to address today's terprises. mally be too small for IFC con- needs and priorities of the pri- sideration. vate sector; often, but not nec- In Colombia, Mexico and essarily, these activities lead to Regional Initiatives Venezuela, IFC has consider- IFC loan and equity financing ably expanded its fee-based cor- in the implementation stage. In view of the improving in- porate restructuring and finan- During FY87, requests for vestment and external environ- cial advisory services beyond advisory assistance under the ment for many countries in the the regular expansion projects FIAS program were received region, IFC plans to maintain a that often include an operation- from several countries in Latin high flow of new resources, both al and financial restructuring America and the Caribbean, and through its traditional large-scale component. IFC is providing discussionsare underway to de- project financing activities and restructuring advice to several termine the scope of the assis- through the utilization of finan- highly indebted companies, par- tance. cial intermediaries to meet the ticularly in Mexico, such advice
28 CAPITAL MARKETS the risk of ignoring"market ketsinstitutions in 31 countries, signals"in the financialsector one regionalinvestment and one The CapitalMarkets Depart- has becomeincreasingly well whichis worldwidein scope.Of ment has been activesince its documented. this amount, $110.9million was establishmentin 1971as the fo- in loansand $45.8million in cal point for WorldBank/IFC TheYear's Activities equity.This compareswith financialmarkets activities.The During FY87,the Board of $127.2million in 45 institutions Departmenthas three main Directorsapproved loans and at the end of FY86:$88.5 mil- roles:it advisesgovernments on equity investmentstotalling $97 lion in loans and $38.7million in how to organize,modernize and millionfor 12 capitalmarkets in- equity.Among this Year'sap- internationalizetheir financial stitutions.Of the total financing provedinvestments, seven were markets;it investsin financial approved,$15 million was for to establishnew companiesor institutionsaimed at making the loans and $82 millionfor equity. were for companiesthat had financialsector more efficient; The Corporationalso provided never receivedIFC assistance.In and it promotesthe flow of for- a substantialamount of policy severalcases, IFC assistedin the eign portfolioinvestment. adviceon financialmarket de- expansionof existingcompanies velopmentto governmentsin 25 in whichIFC had made earlier ChangingViews of Financial countries,with a focus on finan- investments. Markets cial sector surveysand the devel- The Corporationinvested in Financialmarkets-money, opment of securitiesmarkets severalprojects to promote the bond and equitymarkets-and and bankingpolicy. developmentof financialmar- non-bankfinancial institutions Workingwith the World kets. For example,agency lines are, with somemajor exceptions, Bank, IFC conductedfinancial in Argentinaand Pakistanwill stilla relativelyunder-developed sectorstudies in Argentina, be utilizedto investin private part of the financialsystem of China, Hungary, Ghana, India, medium-sizedlocal enterprises, many developingcountries. Un- Madagascar,Malaysia and Swa- with a localinstitution doing the til a few years ago, a number of ziland.Specific policy advice on credit or investmentanalysis and these countriesdiscriminated, of- securitiesmarket development matchingIFC's loans or invest- ten unintentionally,against the was providedto China,India, ments in each project.In Hun- developmentof these markets Morocco,Nepal, Pakistan,Pap- gary,IFC investedin one of the through interestrate controls, ua New Guinea and Tunisia. country'sfirst full-fledgedcom- unfavorableforeign exchange mercialbanks, whichwill pro- and tax policies,subsidized loan INtitutionalInvestment videa broad range of banking schemes,and the practiceof sell- At the the end of FY87, the and other servicesto Hungarian ing governmentbonds at below- Corporationhad investmentsof clients,focusing on cooperative market rates to captiveholders. $156.7million in 52 capital mar- enterprises.In Ecuador,an in- But financialmarkets have now becomethe centerof attention in many countries,for the fol- lowingreasons: * the internationaldebt crisis
has focusedon the need for . l -, - domesticsavings mobilization v and on the crucialrole of equ- ity in the financialsystem as a bufferagainst external and in- temal shocks; * the inefficienciesin intermnedia- tion and resourceallocation of- financialsystems which de- pend exclusivelyon commer- cial and investmentbanks havebecome more apparent; 12 and
29 IFC FY87 InvesttnentCapital Markets IFC Proiect Company Country Type of Business Investment Costs (US$ millions) Banco General de Negocios S.A. Argentina Agency line (debt) 10.00 20.00 Leasing Bolivar S.A. Colombia Leasing 5.00 10.00 Facturas Intemacionales S.A. Ecuador Factoring .15 .80
3TNICBANK Rt. Hungary Commercial banking 3.14 20.00 Housing Development Finance Corporation Limited India Housing financing .39 8.00 Korea Business Research & Information, Inc. Korea Credit rating agency .19 4.00 V Korea Development Leasing Corporation Korea Leasing .25 4.70 The Malaysia Fund Malaysia Investment fund 37.95* 84.00
3Pakistan Industrial Credit and Investment Corporation Pakistan Equity financing 3.00 6.00 First Philippine Capital Fund L.P. Philippines Debt/equity conversion fund 12.50* 250.00 The Thailand Fund Thailand Investment fund 9.33 25.00 UDC Limited** Zimbabwe Leasing and factoring .22 1.60 Emerging Markets Growth Fund World Investment fund 15.00 75.00 El- TOTAL 97.12 509.10 * Primary underwriting. a ** As a rights issue below $250,000, this investment is not included in the g total number of investmentsgiven on p. 16.
vestmentwill enable a factoring The secondelement is to pro- domesticfinancial resources; company to expandand intema- mote the conversionof debt assistingdeveloping countries tionalizeits operations. owed by developingcountries to link their domesticsecuri- into equity investedin local ties markets to the interna- Equityas a DevelopmentTool companies.IFC is actively tional capital markets through IFC has developeda two- promotingseveral of these con- country funds,international is- prongedinvestment approach to versionprograms, each of which sues of stocks as wellas assistdeveloping countries shift is likelyto involvethe participa- throughcredit insuranceand domesticpolicies away from re- tion of dozensof commercial improvementof communica- liance on debt to a more bal- and investmentbanks. tion and computerizationsys- anced approach that includes tems; equity financing.Building on FuturePlans upgradingthe flow of infor- earliersuccesses with the Korea During the comingyears, mation from emergingmar- Fund and the EmergingMar- IFC, throughits Capital Mar- kets to internationalinvestors kets Growth Fund (in whicha kets Department,expects to fo- through expansionof IFC's follow-upinvestment was made cus its effortson areas such as: EmergingMarkets data base this Year),the Corporationas- * enhancingthe efficiencyof whichcontains information on sistedwith the creationof simi- emergingfinancial systems by the equity,bond and money lar funds in Thailandand Ma- creatingflexible forms of markets of developingcoun- laysia to attract foreign portfolio domestic finance. Examples tries; establishment of rating investment. While bringing equi- rmightinclude risk capital agencies and improvement of ty from industrialized countries oriented institutions such as disclosure standards; and to developing ones, these funds investment banks and venture introducing new financial con- also serve to familiarize foreign capital companies, and con- cepts such as debt-equity con- investors with local securities tractual savings institutions, versions, securitization of fi- markets and improve local com- life insurance companies, pen- nancial assets and unbundling panies' access to world capital sion funds, etc., which could of financial risks. markets. facilitate mobilization of
30 OTHER OPERATIONS
SYNDICATIONS mercialbanks to increasetheir bank, to financeprivate sector exposurein many developing tourismprojects in Morocco. IFC's Syndicationsunit acts countries. The packageincluded a long- as the Corporation'smain point Syndicatedloans or invest- term, fixed-ratetranche provided of contact with the international ments werenegotiated with fi- by IFC and fundeddirectly by a financialcommunity for its lend- nancialinstitutions for projects privateplacement in the domes- ing operations.Commercial, in- in Colombia,Ecuador, Malay- tic guildermarket. In conjunc- vestmentand merchantbanks sia, Mexico,Morocco, Philip- tion with this financing,IFC ar- are essentialpartners in the de- pines,Portugal, Thailand and ranged for a currencyswap to velopmentof IFC's business, Yugoslavia. satisfythe borrower'sprefer- not only as loan participantsbut Internationalfinancial mar- ences.In Yugoslavia,IFC joined as joint ventureco-investors, kets and techniquescontinue to a group of European financial partners in corporaterestructur- evolverapidly, and IFC aims to institutionsin providingVojvod- ings and advisorywork, and ensurethat its borrowerscan janska Banka-UdruzenaBanka sourcesof introductionto com- benefitfrom thesedevelopments. with a multi-currencyfacility to- paniesneeding IFC's unique As examples,IFC recently tailingthe equivalentof $50 mil- range of financialservices. joined with NMB-Banque lion, for on-lendingto a range of IFC's most activecatalytic Interunionin arrangingan inno- smalland medium-sizedexport- role is in arrangingfor these fi- vativemulti-currency loan pack- orientedindustries. IFC also ex- nancialinstitutions to participate age for Credit Immobilieret pects to make increasinguse of' in its projectloans. Participants Hotelier(CIH), Morocco'stour- varioustypes of securitizedfi- benefitfrom IFC's projectap- ism and housingdevelopment nancingfor developingcountry praisal and supervision,and from the specialstatus IFC en-i joys within its membercoun- tries. Syndicationof IFC loans can thus providefinancing on terms that are often not aval- able for developingcountry bor- rowers seeking direct project loans. During the past fiveyears IFC has signedparticipation agreementsamounting to $1,054 millionwith banks and other fi- nancialinstitutions, and current- ly admninistersa portfolio total- ling $1,039million for the ac- count of others. In FY87 the Corporationsyn- dicatedor had pendingsyndica- tions amountingto $83 million of participationsin the total $793million loans approved by the Board of Directors.To this figurecan be added a further $103 millionof subscriptionsby banks to equity-relatedinvest- ment funds. T'hisaggregate total of syndi- cations was lowerthan in FY86, reflectingpartly the timingof in- dividualprojects and partly the continuingreluctance of com-
31 FinancialInstitutions Participating in IFC Loans DuringFiscal 1987
Abu Dhabi IntemationalBank Inc. Credit Suisse Al Saudi Banque DeutscheBank LuxembourgS.A. The Arab InvestmentCompany S.A.A. InternationalBankers Incorporated S.A. Banquede l'Union Europenne Kreditanstaltfir Wiederaufbau BanqueIndosuez NederlandscheMiddenstandsbank NV BanqueNMB-Interunion OesterreichischeLanderbank Aktiengesellschaft BanqueWormns SifidaInvestment Company S.A. BergenBank A/S SocieteLyonnaise de Banque Caixa Geral de Depositos Union Bank of Switzerland Credit Lyonnais
borrowers, thereby enhancing its the costs involved in preparing serving as the chainnan of the catalytic role and providing its market, technical and other feas- Facility's Advisory Board. The clients with wider access to capi- ibility studies necessary to the African Development Bank, in tal market funding on the best project preparation cycle. APDF addition to providing a financial available terms. identifies promising African en- contribution, is also serving as At a time when financial insti- trepreneurs and helps them to the regional sponsor for this tutions are increasingly restruc- organize, diversifyand expand project and is represented on the turing and re-evaluatingtheir their businesses.The Facility Facility's Board. developing country loan portfo- works with these entrepreneurs The Facility opened its offices lios, the Syndications unit has during the whole cycle of project for business in Abidjan and Nai- also played an important part in preparation. robi in November, 1986 and, by promoting the concept of debt- Thirteen countries have com- the time this report is published, equity conversion funds, work- mitted to funding APDF: both offices will have their full ing with the Capital Markets Belgium, Canada, Denmark, staff complement of eight pro- Department. Finland, France, Germany, Ita- fessionalseach. Demand for ly, Japan, the Netherlands, APDF serviceshas been strong; Sweden, Switzerland,the United since the inauguration of the of- AFRICA PROJECT Kingdom and the United States. fices in November, 1986,over DEVELOPMENT Brazil and India have agreed to 400 requests for assistance have FACILITY provide APDF with technical been received.At the close of assistance, while the United Na- the Fiscal Year, the offices were The APDF provides advisory tions Development Programme processing 11 projects which are servicesto private African entre- (UNDP) is providing the Facili- expected to be presented to fi- preneurs in the preparation of ty with a substantial financial nancial institutions, technical viable projects. It also helps en- contribution. The Assistant Ad- partners and potential investors trepreneurs to cover a portion of ministrator of UNDP is now in the corning months.
32 CARIBBEAN tutions,as wellas a similar This brings the total number PROJECT numberof regionaland local or- of projectscompleted since the DEVELOPMENT ganizations. foundingof CPDF in 1981to FACILITYLU P M E N T During the past twelve 66. The aggregateinvestment FA C ILITY months,CPDF completed 17 cost of theseprojects amounts projectshaving an aggregatein- to approximately$190 million, vestmentcost of approximately of whichCPDF has to date suc- The CaribbeanProject Devel- $74 million.This representsan ceededin raisingabout $38 mil- opment Facility(CPDF) was es- increaseof 23 percentover the lion in long-termdebt and tablishedunder the auspicesof volumeof businesstransacted equity. the United Nations Develop- duringthe same periodlast year. At the EighthMeeting of the ment Progranme, with the In- Ten countriesbenefited from CaribbeanGroup for Coopera- ternationalFinance Corporation thoseprojects, including the Is- tion in EconomicDevelopment acting as the ExecutingAgency, land of Anguillafor the first held in Washington,D.C., on to assistsmall entrepreneurs in time.The other countrieswere January 27-30, 1987,CPDF's the preparationof development Antigua (3), Bahamas(2), membercountries and donors projectsfor whichthey seekfi- Barbados(1), Belize(1), agreedthat its mandate should nancing.A total of eight inter- Dominica(2), DominicanRe- be extendedfor fiveyears when nationaland govemmentalde- public(2), Grenada (1), Haiti its current secondexperimental velopmentagencies provide the (2), and Saint Kitts and Nevis term expiresat the end of 1987. fundingon a grant basis. In (2). The agriculturalsector was It was also agreedthat strong helpingto obtain the long-term the most predominant,with sev- considerationshould be givento financeand equityneeded for en projects,followed by lightin- expandingthe territorycovered new projects,CPDF is currently dustry with six,tourism with by CPDF to includeCentral workingwith about 15 intema- three and the energysector with Americaand Panama as of Jan- tional developmentfinance insti- one. uary 1988.
K3
33 BUSINESS business development efforts in newsletterwhich will be issued DEVELOPMENT IN continental Europe, the UK and regularly in the future to inform the Nordic countries, including a this audience about IFC's ser- INDUSTRIAL joint program with DEG, to vicesand activities. COUNTRIES market the Corporation's ser- An integral and important vices to the German business part of the business development During FY86, the Corporate community. These European ef- effort was the establishment of Promotion and Syndications forts were supported by the an aggressiveconference and Department was created to at- presence of the Executive Vice seminar program. During the tract new investment partners President before business groups Fiscal Year, the Corporation for joint business ventures in the in six countries. The Corpora- participated in, helped organize developing world. In September, tion gratefully acknowledges the and contributed to two major 1986, the Department launched assistance and support it has re- business conferences-an IFC/ a promotional campaign in ceived from many European Euromoney Latin America Fi- North America using a variety banks, trade associations and nancial Forecast Conference and of marketing tools. Working business groups throughout a Confederation of British closely with the Corporation's Europe. Industry Conference on IFC two Special Representatives in In addition, an important ini- services. Europe, the commercial banking tiative was launched in Japan. IFC also finalized arrange- community, and international The growing internationalization ments for major international and bilateral financial institu- of the Japanese business and fi- conferences with the Economist, tions, the Corporation has taken nancial community and the Business International and the initial steps to increase the sharp appreciation of the yen Euromoney to take place in awareness of the investment ser- are likelyto result in a signifi- FY88. vices the Corporation can pro- cant expansion of Japanese in- Such events, supplemented by vide to the European business vestment in manufacturing facid- business seminars with the comrmunity. ties in developing countries. A World Economic Forum, pro- The Department's Business senior staff member went to Ja- vide both an opportunity to ac- Development Unit concentrated pan for an extended visit to as- quaint large audiences with its first efforts in North sess, in close cooperation with IFC's servicesand to speak out America. Through a systematic IFC's Special Representative in on the issues which concern po- call program and following leads the Far East, the potential for tential investors world-wide. developed by the Department's closer ties between IFC and Ja- indirect marketing efforts and pan's business community. intensive marketing efforts in In the area of new financial FOREIGN four U.S. cities, IFC met with products, the Department devel- INVESTMENT over 300 companies in the re- oped and launched a promo- gion to discuss investment op- tional program for GRIP ADVISORY SERVICE portunities. About half of these (Guaranteed Recovery of Invest- companies were in the process ment Principal), a technique to Since IFC formalized its ac- of investing in one or more de- encourage direct foreign invest- tivities in this field by creating veloping countries or expressed ment. the Foreign Investment Adviso- an interest in doing so. This ex- Initial steps have been taken ry Service (FIAS) in FY86, re- perience confirmed earlier mar- to develop joint business devel- quests for assistance have been ket research that the Corpora- opment programs with UNIDO growing steadily. These requests tion was not well known in the (United Nations Industrial De- have come directly from coun- business community, but that velopment Organization) and tries interested in adjusting poll- business found IFC a useful ad- FAO (Food and Agriculture Or- cies, regulations and institutional junct to investment plans once it gamnzation)through that institu- arrangements in order to attract became aware of IFC's services. tion's Bankers Program. foreign direct investment, or In addition to its North In the fourth quarter of the from program divisions of the American activities the Unit, Fiscal Year, the Department de- World Bank looking for assis- with the European Representa- veloped and distributed to its tance in connection with policy tives, undertook a number of business clients a corporate dialogue with member countries.
34 FIAS advisoryprojects have Generally,most of the techni- ganizedby the Royal Societyof been initiatedor completedin a cal assistanceis givenin the con- Jordan; "ProjectManagement," numberof Asian countriesin- text of projectdevelopment and run by the Governmentof cludingBangladesh, China, Ma- appraisalwork undertakenby Sweden;and the "Development laysia,the Philippinesand Thai- IFC's EngineeringDepartment Banking"seminar organized by land. Basedon this extensiveex- in the courseof preparingand the Industrialand Commercial periencein Asia, a similarpro- reviewinginvestment proposals. Bank of China. gram is being developedin Af- However,the Departmentis also In its work of disseminating rica, whilein Europe,an adviso- increasinglyproviding fee-based the applicationsof modern tech- ry assignmentin Yugoslaviahas technicalconsultancy services as nology,IFC collaborateswith recentlybeen undertaken.Sever- part of the restructuringof exist- other organizationsand agen- al Latin Americanand Carib- ing industrialoperations, many cies,such as UNDP and its In- bean countrieshave also re- of whichare outside IFC's port- vestmentFeasibility Study Fa- questedFIAS assistance.(For folio.This serviceis already cility,for financingstudies on specificinformation on theseas- beingprovided in Colombia, potentiallyviable projects in the signmentsplease see the regional Honduras, Mexico,Venezuela least developedcountries. Dur- reports.) and the Caribbeanin connection ing the Year,IFC, throughthis A major effortwas made dur- with operationsas diverseas the Facility,assisted in the prepara- ing the year to identifyand se- meat industry,beverages, tex- tion of studieson the restructur- cure sourcesof externalfunding tiles,steel, and cold storage. ing of an existingfertilizer plant to help support the FIAS pro- Someexamples of the range of in Cote d'Ivoire,and in the for- gram. An agreementwas made technologyand businessesrelat- mulationof a new textilespin- with UNDP to providefunds ed to new investmentsundertak- ning projectin Pakistan.Also, in whichwill partially cover the en during Fiscalyear 1987are conjunctionwith the African costs of advisoryactivities in shownin the table on the fol- RegionalBureau of the UNDP, Asia and the Pacificthrough cal- lowingpage. IFC coordinatedthe successful endar year 1988.Again, with the IFC is very much aware of completionof a major study support of UNDP, a similar the importanceof ensuringthat into the prospectsof preserving three-yearprogram of assistance all investmentand development agriculturalproduce by has been preparedfor Africa. projectsare designedto mini- irradiation. Funds to cover expensesrelated mizeor eliminateany possible Receptivityto new technolo- to specificprojects have come environmentaldamage or risks giesthat are beingdeveloped in from the European Economic to individualhealth or safety. the industrializedcountries at an Community(EEC), bilateral Closeliaison is maintainedwith ever increasingrate, and the ca- sourcesof developmentassis- the staffof the WorldBank En- pacityto assimilatethem, what- tance in the United States,the vironmentScience and Tech- ever their origin,is as important Netherlandsand Canada, nologyUnits in achievingthis as inventivenessitself. A conspi- UNDP funds allocatedto a par- objective. cuous featureof the economic ticularcountry and feescharged Recognizingthe need for wid- successof Europe,the U.S.A., to clientgovernments. er disseminationand communi- and Japan has been the aggres- cation of technologicalinforma- siveborrowing and assimilation tion, IFC's engineersconduct of technologiesthat originatedin TECHNOLOGY AND and participatein seminarsand other cultures,a principlethat is PROJECT symposiathroughout the world, equallyapplicable to the devel- DEVELOPMENT often in conjunctionwith the oping world. WorldBank. In FY87,five such Many newertechnologies, in Durin IFC continued.Y87, seminarswere conducted: "Tech- many fields-from biotechnolo- to provideengineering and tech- mial Aspectsof Appraisal," gy to mechanicalor communica- nicalassistance services to pn- sponsoredby the NigerianIn- tions engineering-operateon fi- nicasassistancenseres. . dustrialDevelopment Bank; "In- nancialparameters that are rad- vate sector organizationsin de- dustrialProjects Evaluation," icallymore economicalthan velopingcountres, with the ob- held by the InternationalDevel- current or conventionaltechnol- fectiveof maximiangthe benefit opment Center of Japan; "In- ogies,and many of them can of investments. dustrialProjects Appraisal," or- use local resourcesmuch more
35 ExamplesIllustrating the Range of Technologiesin IFC Projectsapproved in FY 1987
Sector Technology Country
Agribusiness Restructuring and rationalizinga poultry and meat processing Brazil operation. Aquaculture Introduction of the outgrower concept to a shrimp farming Philippines project. Food processing Separation of stearine from oline, allowinga soap Cote d'Ivoire manufacturer to recover edible oil as a by-product. Mining Application of leachingprocess to recover silver from mining Bolivia residues. Automotive Adoption of modem fuel-efficientengine and transmission India designs for new automobile and commercialvehicle plants. Textiles Restructuring of two existing IFC supported companiesin Sudan conjunction with a new export oriented spinning mill. Pulp and paper Optimizationof the selectionof raw materials for paper Costa Rica making. Manufacturing Modernization of export-orientedmanufacturing plants for a Yugoslavia range of sectors in one region. Chemical Manufacture of polypropyleneusing a high yield technology. Thailand
effectively.IFC is actively in- for this project is speciallytai- technology for steel lattice struc- volved in assisting the transfer lored to suit the Brazilian auto- tures made from such bars. This and acquisition of appropriate motive market. The artificial will permritthe production in new technology to developing zeolites break down heavy oils Togo of items such as power countries. Illustrations of tech- to provide a higher yield of die- cable pylons and building ele- nology transfer and acquisition sel. ments, for the local market and in IFC's FY87 program are: for export to neighboring coun- 3. Hot briquettedironmaking tries. 1. Buildingpanels for Tunisia. for Venezuela.Venezuela has re- A Tunisian company has ac- serves of natural gas and iron 5. ManganeseSulphate from quired innovative Italian tech- ore, and hence a potential for Flue Dust Wastein Mexico. IFC nology for the production of the deployment of direct reduc- is assisting a mineral waste reuse lightweight durable building tion technology to produce project in Mexico. Existing panels. These panels consist of a sponge or briquetted iron to re- leaching and granulation tech- welded steel wire framework in- place scrap in steelmaking. IFC nology is being adapted in this corporating a layer of rigid insu- assisted the negotiation of a project to produce manganese lating polyurethane foam, creat- technology and know-how sulphate from manganese car- ing a product with extensive po- transfer agreement whereby the bonate and waste chimney dust tential for the construction in- well established Midrex process from Mexico's manganese ore dustry. is being adapted to enable hot processing; the manganese sul- briquettes to be shipped safely. phate will be used in the produc- 2. ArtificialZeolite for Brazil. tion of fungicide, fertilizerand IFC is assisting a project in 4. Steel latficestructure design animal feed. The investment will Brazil to manufacture artificial for Togo. A Togolesesteel mill, essentially function in filling zeolite catalysts to be used in which produces re-rolled bars market demand created by the fluid catalytic cracking of resid- for concrete reinforcement, is ac- decline of a major conventional ual oils. The technology adapted quiring innovative Danish design source of supply.
36 PERSONNEL nance and Budgeting. In termsof recruitment, MANAGEMENT & Mr. Hans Pollanhas an- 90 percentof higher levelstaff ADMINISTRATION Octobernounced andhis intentionMr. Giovanni to retire in andcome almost from theall returnprivate to sector it on With the objective of making Vacchelliwill replace him as leaving the Corporation. During WthC o bjotive rof n Special Representative in Lon- the past year, there was a notice- sive to a changing business envi- don. Mr. Irving Kuczynski wlfl able increase in attrition among sivnentoa sigf ne eavg- take over as Director, Corporate higher level staff. rnient, significan madage-i Promotion and Syndications. In its recruitment program, the Year and are planned for the Mr. John H. Stewart has been IFC seeks professionalswho forthcoming year. named Regional Representative, have already achieved success in In FY87, a new Vice Presi- Middle East. the private sector, but who find dency for Portfoao Operations At the end of the Fiscal Year, a professional challengein and was estabnPshedin order to pro- the Corporation had a total staff want to contribute to the devel- vide closer supervision of the of 514, compared with 498 a opment work of the Corpora- portfolio and additional assis- year earlier. Of these, 337 were tion. Apart from filling vacated tance to client companies. In higher level or professional staff. positions, higher level employ- FY88, the Vice Presidency for Reflecting the international ment is expectedto remain rela- Finance and Resource Manage- character of the Corporation, a tively constant over the next Fis- ment will be renamed Finance total of 76 nationalities are re- cal Year. and Planning, continuing its ef- presented on the staff, including In the present environment of forts to strengthen and improve individuals from 57 developing budget restraint and expansion funds management, planning, countries. In fact, 40 percent of of the Corporation's activities, policy and the newly developed higher level staff and 33 percent there is even more need for treasury operations. Mr. Richard of managers are from develop- greater productivity. During the H. Frank has been named Vice ing countries. past year, therefore, measures President, Finance and Planning, Women now occupy 13 per- have been taken to develop to succeed Mr. Hilary Reddy, cent of higher level positions in training courses and programs who has resigned to return to IFC, compared to 11 percent that will promote a higher de- the private sector. Mr. Eduardo last year. In both cases, about gree of efficiency,largely Costa will be appointed to re- half came from developing through greater and more ef- place Mr. Frank as Director, Fi- countries. ficient use of office technology.
37 HIGHLIGHTS NET INCOME $13.6million. These sales, un- dertaken at a time when strong During the Year,the Corpo- Net incomeamounted to world equitymarkets offered ration's basicobjective was to $53.8million, more than dou- IFC many unusuallyfavorable continuethe expansionof its in- bling the incomeof the previous opporturfities,are consistent vestmentactivities so as to make year.All of the year's income with the Corporation'spolicy of a growingcontribution to the was added to retainedearnings. revolvingits equityportfolio to economicdevelopment of its free up resourcesto investin membercountries, and to new ventures. achievethat expansionin a The return on the liquidasset manner which will also portfolio was satisfactory,with a strengthen the Corporation's fi- gross return of about 6.7 percent nancial position. on average portfolio. This port- During the Fiscal Year, maj.or folio consists of short-term de- progress was achieved toward positsand govemmentscurities this objective.The volume of acquired by the Corporation to commitments and new projects 30 ensure sufficientliquidity to car- approved, on which the future ry out its matched funding poli- portfolio depends,increased sub- cy, under whiichthe Corporation stantiallywhie the net income funds its loans at the timneof for the year reached an all time commitment. This policyis de- hgh of $53.8 millon. The Cor- signedto minimize IFC's expo- poration took a significant step sure to interest rate risks, cur- in introducing new financial in- rency fluctuations and maturity struments and improved loan nmismatches.IFC's objective for features to help meet the needs the liquid asset portfolio is to be of both its clients and IFC in able at least to break even on its coping with interest rate volatil- The increase in income can be borrowed component which in- ity and rapid changes in finan- attributed largely to interest in- cludes both fixed rate borrow- cial markets. And finally, IFC come from IFC's loans, realized ings on which IFC incurs a car- diversifiedits borrowing opera- capital gains and income from rying charge and variable rate tions to take advantage of at- liquid assets. The increasein fees borrowings which have a posi- tractive funding opportunities in was due to more income from tive carry. various capital markets. The the newly irnplementedfront- Gross income increased by Corporation borrowed actively end fees on fixed rate loans and $77 million to $285.4 rnillion through privately placed fixed fee-based servicesin FY87. while operating expensesin- rate bond issues in various cur- During the year, the equity creased by $48.7 million to rencies. The proceeds were often portfolio contributed a record $231.6 million. swapped into variable rate funds $41 million in capital gains from Most of the increase in oper- and the specificcurrencies re- the sales of mature equity invest- ating expenses was the result of quired for the Corporation's ments in 15 companies, a 200 borrowing costs to fund IFC's own lending operations. As a re- percent increase over last year's lending commitments. Adminis- sult, IFC was able to provide attractive financing to its client companiesthrougha wide range . of lending devices. These achievements are described be- low in further detail.
3I I. .I L
38 trative expenses totalled $63.7 previous Fiscal Year. in addi- which interest rates will be million, an increase of $3.6 mil- tion, a $308.6 million portion of reset every five years. At lion over the previous year. subscribed capital is not yet each rate resetting point, Thus, for every dollar of operat- paid in. borrowers will also be able ing income, administrative ex- to elect an alternative rate penses accounted for 22.3 cents basis and currency. versus 28.9 cents in the previous Payments: ii) Fixed rate borrowers will year. Fiscal Year1987 be able to defer rate setting Provision for lossesincreased / and currency selection up by $13 million to $52 million. 10,0J to the point of signing or a The increase was largely from ePfQ maximum of 12 months. additional specificprovisions for iii) Borrowers of variable rate loan losses for three companies loans will have a one time and an increase in general provi- 40/ option to convert their sion for lossesdue to a higher loans to a fixed rate in a level of disbursements in FY87. X major currency of their This increase brought the re- choice at any point during servesas a percentageof year- S RepaymernsonBorrowAngs the lifeof the loan. end disbursed and outstanding AdmnstrativeExpenses iv) When feasible, interest rate portfolioto 10.5percent from DL Curems caps will be made available 10 percent in FY86. in connection with variable rate loans to contain in- terest rate risks. Capital and Accumulated Earnings LIABILITY Paid-in capital as of June 30 NEWTUENDING 1987,amounted to $721.6mil-' FEATURES AND lion, and retained earnings, in- INSTRUMENTS Management of IFC's own cluding the Fiscal Year's net in- liabilities has become increasing- come, $337.6 million. The Cor- In response to changing needs ly important as IFC has sought poration's net worth totalled of IFC's client companies for to fund new products and offer $1,059.2 million, up from more flexible forms of financing, competitive, market oriented fi- $885.6 million at the end of the the Corporation devised a num- nance to its clients. In addition ber of new lending features and to borrowing from the World instruments to be offered to Bank, the Corporation raised LDC companies. These new funds from the private markets, products and features will be arranged swaps, and now lends Receipts: particularly valuable for borrow- and funds itself in six non-dollar FisoalYear19t ' ers in managingtheir financial currencies. 100%/n charges during periods of in- The Corporation's total bor- terest rate and currency volatil- rowing for the Fiscal Year ity, as each one offers additional amounted to $441 million. The flexibilityto manage risks over World Bank provided $200 rnl- 40O34 the life of the loan. The instru- lion. The Corporation borrowed ments incorporate a number of $241 million in five private advanced financing techniques placements on the international that are widely used by corpora- markets in FY87: three Euro- tions in the developed countries, dollar borrowings of $50 million is Repaymensanl saes but which are generally not each, a Dutch Guilder private mBorrowings available to private sector LDC placement of 52 million, equiva- Incomefrom Loan/Equity enterprises. Specifically: lent to approximately $25 mil- i) Fixed rate borrowers will lion and a syndicated Yen loan be offered an option under
39 of 10 billion, equivalent to ap- In a recent transaction IFC transaction is iLlustratedbelow. proximately $66.3 miLlion.The borrowed fixed-rate yen on the The swap has enabled IFC to Yen and Guilder borrowings Japanese market, swapped them borrow at an effectivecost be- were the first done by IFC in into LIBOR-based dollars with low LIBOR and corresponding- those markets. Banks and finan- a major bank, on-lent part of ly to reduce interest rates to its cial institutions participating in these LIBOR-based dollars to a clients, while matching the these operations included Bank client company and swapped the clients' preference towards cur- of Tokyo International Lirnited, remainder into fixed rate rency terms and rate basis. Industrial Bank of Japan Inter- Deutsche Mark to be on-lent to national Limited (London), another client company. This Nederlandsche Middenstands- bank NV (NMB Bank), The Fixed Rate Yen Swapped Into Variable Rate U.S. Dollars Bank of Tokyo, Ltd., Nippon and Fixed RateDeutsche Mark Life Insurance Company, Chemical Bank and Morgan Guaranty. Three interest rate fl swaps of $150 million and two cross currency interest rate swaps of $107.5 millionwere Fixed concludedmainly to produce Rate variable rate US doUlarfunding. DM In addition,the Corporation u.s. dollar OLJ4 carried out one cross-currency LIBOR-based swap of $12.3 milflionon behalf i S. dollar of its clent. The borrowings were concluded at very favor- able rates, resulting in cost say- HateNiOeE ings for IFC and contributing to YenFinancing FixedRaie lowering the Corporafion's lend- D mg rates. U.Sdola FixedRate Yen LIBOR-based UrS.do] ar
HOW SWAPSHELP SA REDUCEIFC'S tths LENDING RATES
One of IFC's major objectives is to provide appropniate and NOTE:Arrowe indicate interact flows reasonably pnicedfinancing to its cient companies. While in the past, most of IFC's lending was in fixed-rate U.S. dollar loans, the demand for variable rate dollar loans and loans in other currencies has been rapidly expanding. In response to these new needs, IFC is relying in- creasingly on swap agreements to secure competitivelypriced funds to meet its clients' bor- rowing requirements in terms of rates, currencies and maturities.
40 FINANCIAL STATEMENTS
International Finance Corporation Annual Report 1987
BalanceSheet 42
Statementof Income 43
Statementof Changes in FinancialPosition 44
Statementof CapitalStock and VotingPower 45
Notesto FinancialStatements 46
Reportof IndependentAccountants 48
41 International Finance Corporation Balance Sheet Exhibit A June 30, 1987and June 30, 1986 In Thousands of United States Dollars-See Notes to FinancialStatements, Exhibit E 1987 1986 ASSETS Loan and Equity Investments-Note B Investments committed ...... $2,755,677 $2,387,200 Less-Undisbursed ...... 877,587 619,224 Disbursed and outstanding ...... -- 1,878,090 1,767,976 Less-Reserve against losses ...... 197,799 177,663 1,680,291 1,590,313 Accrued income on loans...... 25,000 25,293 Receivables from purchasers of loan and equity investments...... 44,929 23,443 Depositsand Securities Obligations of governments...... 545,879 406,053 Time deposits and other obligations of banks and financial institutions ... 461,690 143,588 Receivable from sales of deposits and securities ...... 11,273 5,604 Accrued income on deposits and securities ...... 7,706 4,056 Cash ...... 12,414 17,086 Net receivable from currency swaps-Note D ...... 8,285 Other assets ...... 16,654 20,950 TOTALASSETS ...... $2,814,121 $2,236,386
LIABILITIESAND CAPITAL Liabilities Borrowings-Note D International Bank for Reconstruction and Development ...... $1,222,248 $1,421,739 Less-Undrawn ...... 426,189 584,194 Withdrawn and outstanding ...... 796,059 837,545 Others...... 785,299 496,388 Less-Undrawn ...... - 110,685 Withdrawn and outstanding ...... 785,299 385,703 1,581,358 1,223,248
Accrued charges on borrowings ...... 31,958 23,810 Net payable from currency swaps-Note D ...... - 1,838 Accounts payable and other liabilities...... 34,689 31,745 Payable for purchaseof depositsand securities...... 70,330 54,608 Deferred income ...... 36,566 15,536 TOTAL LIABILITIES ...... 1,754,901 1,350,785 Capital and Accumulated Earnings Capital stock, authorized 1,300,000 shares of $1,000 par value each-Note E Subscribed 1,030,218 shares (880,340 shares-1986).. ... $1,030,218 880,340 Less-Portion for which payment is not yet due 308,638 shares, (278,585 - 1986) ...... 308,638 278,585 721,580 601,755 Accumulated earnings ...... 337,640 283,846 TOTAL LIABILITIES AND CAPITAL ...... $2,814,121 $2,236,386
42 International Finance Corporation Statement of Income Exhibit B For the Fiscal Years Ended June 30, 1987and June 30, 1986 In Thousands of United States Dollars-See Notes to FinancialStatements, Exhibit E 1987 1986 INCOME Incomefrom loan and equity investments: Interest...... $165,019 $141,919 Dividendsand profit participations...... 10,951 12,528 Commitmentfees ...... 7,889 5,467 Realizedgains on equity sales...... 40,857 13,618 Otherinvestment fees ...... 8,240 3,867 232,956 177,399 Incomefrom depositsand securities...... 49,248 32,789 Translationgains (losses)net ...... 2,010 (2,060) Otherincome ...... 1,168 196 TOTALINCOME ...... 285,382 208,324
EXPENSES Chargeson borrowings...... 115,319 83,716 Administrativeexpenses ...... 63,746 60,196 Provisionfor losses ...... 52,023 39,007 Contributionto Africa ProjectDevelopment Facility-Note F ...... 500 _ TOTALEXPENSES ...... 231,588 182,919
NET INCOME...... $ 53,794 $ 25,405
43 International Finance Corporation Statement of Changes in Financial Position Exhibit C For the Fiscal Years Ended June 30, 1987 and June 30, 1986 In Thousands of United States Dollars-See Notes to FinancialStatements, Exhibit E
1987 1986
Loanand EquityInvestment Activities: Disbursements...... $ 327,502 $ 324,832 Repayments of loans ...... (257,638) (174,289) Sales of loans and equity...... (32,150) (33,806) Exchange adjustments-loans ...... 98,188 106,037 Other ...... (25,790) (15,243) Totalfinancial resources used in investmentactivities ...... 110,112 207,531
Financialresources for investmentactivities wereprovided by (appliedto): Operations: Net income...... 53,794 25,405 Provision for losses ...... 52,023 39,007 Non-cash items (accrued income and expenses) ...... 8,633 12,096 Financial resources provided by operations ...... 114,450 76,508
Borrowing activities: Draw-downs ...... 392,330 326,110 Repayments on borrowings ...... (146,319) (49,100) Exchange adjustments ...... I.. 110,853 120,301 Other...... 1,246 782 Financial resources provided by borrowings...... 358,110 398,093
Capital subscription payments ...... 119,825 55,971 Other assets and liabilities, net ...... (29,017) 19,593 Totalfinancial resources provided ...... 563,368 550,165
Increasein cashand deposits and securities ...... 453,256 342,634 Cashand deposits and securities,beginning of year...... 566,727 224,093 Cash and deposits and securities, end of year...... $1,019,983 $ 566,727
Composedof: Cash ...... $ 12,414 $ 17,086 Obligations of governments...... 545,879 406,053 Time deposits and other obligations of banks and financial institutions ...... 461,690 143,588 $1,019,983 $ 566,727
44 International Finance Corporation Statement of Capital Stock and VotingPower Exhibit D June 30, 1987 and June 30, 1986 In Thousands of United States Dollars-See Notes to Financial Statements, Exhibit E CapitalStock VotingPower Capital Stock VotingPower Amount Percent Number Percent Amount Percent Number Percent Members Paid of Total of Votes of Total Members Paid of Total of Votes of Total Afghanistan ...... $ 111 .02 361 .05 Lesotho ...... $ 18 ' 268 .04 Antigua and Barbuda .... 13 * 263 .03 Liberia ...... 83 .01 333 .04 Argentina ...... 14,513 2.01 14,763 1.96 Libya ...... 55 .01 305 .04 Australia ...... 18,015 2.50 18,265 2.42 Luxembourg ...... 815 .11 1,065 .14 Austria ...... 5,085 .70 5,335 .71 Madagascar .... 11...... 111 .02 361 .05 Bahamas, The ...... 114 .02 364 .05 Malawi ...... I .. 544 .08 794 .11 Bangladesh...... I.... 3,440 .48 3,690 .49 Malaysia ...... 5,795 .80 6,045 .80 Barbados ...... 137 .02 387 .05 Maldives ...... 6 256 .03 Belgium ...... 19,214 2.66 19,464 2.58 Mali ...... 116 .02 366 .05 Belize ...... 26 276 .04 Mauritania S5...... 01 305 .04 Benin ...... 67 .01 317 .04 Mauritius .... ., ...... 531 .07 781 .10 Bolivia ...... 607 .08 857 .11 Mexico ...... I 8,872 1.23 9,122 1.21 Botswana ...... 29 279 .04 Morocco ...... 3,440 .48 3,690 .49 Brazil ...... 15,027 2.08 15,277 2.02 Mozambique ...... 182 .03 432 .06 Burkina Faso ...... 245 .03 495 .07 Nepal ...... 306 .04 556 .07 Burma ...... 666 .09 916 .12 Netherlands ...... 21,366 2.96 21,616 2.86 Burundi ...... 100 .01 350 .05 New Zealand ...... 1. 923 .13 1,173 .16 Cameroon ...... 490 .07 740 .10 Nicaragua ...... I... 184 .03 434 .06 Canada ...... 25,957 3.60 26,207 3.47 Niger ...... 99 .01 349 .05 Chile ...... 2,884 .40 3,134 .42 Nigeria ...... I... 8,006 1.11 8,256 1.09 China ...... 6,138 .85 6,388 .85 Norway ...... 11 6,699 .93 6,949 .92 Colombia ...... 3,078 .43 3,328 .44 Oman ...... 452 .06 702 .09 Congo, People's Republic Pakistan 6,519 .90 6,769 .90 of the ...... 67 .01 317 .04 Panama ...... 426 .06 676 .09 Costa Rica ...... 245 .03 495 .07 Papua New Guinea ...... 490 .07 740 .10 Cote d'lvoire ...... 1,349 .19 1,599 .21 Paraguay ...... 123 .02 373 .05 Cyprus ...... 813 .11 1,063 .14 Peru ...... I. 1,777 .25 2,027 .27 Denmark ...... 7,063 .98 7,313 .97 Philippines ...... 3,247 .45 3,497 .46 Djibouti ...... 21 271 .04 Portugal ...... 3,170 .44 3,420 .45 Dominica ...... 13 ' 263 .03 Rwanda ...... 306 .04 556 .07 Dominican Republic ...... 306 .04 556 .07 St. Lucia ...... 19 * 269 .04 Ecuador ...... 1,479 .20 1,729 .23 Saudi Arabia ...... 12,715 1.76 12,965 1.72 Egypt, Arab Republic of 3,124 .43 3,374 .45 Senegal ...... 707 .10 957 .13 El Salvador ...... 11 261 .03 Seychelles ...... 7 257 .03 Ethiopia ...... 33 283 .04 Sierra Leone ..... I ...... 83 .01 333 .04 Fiji ...... 108 .01 358 .05 Singapore ...... I .... 177 .02 427 .06 Finland ...... 5__5,975 .83 6,225 .82 Solomon Islands ...... 11 261 .03 France ...... 43,635 6.05 43,885 5.82 Somalia ...... 83 .01 333 .04 Gabon ...... 429 .06 679 .09 South Africa ...... 6,108 .85 6,358 .84 Gambia, The ...... 35 285 .04 Spain ...... 66,004 .83 6,254 .83 Germany,Federal Republic Sri Lanka .. 2,277 .32 2,527 .33 of ...... 49,066 6.80 49,316 6.54 Sudan ..... 1...... 111 .02 361 .05 Ghana ...... 1,306 .18 1,556 .21 Swaziland ...... 184 .03 434 .06 Greece ...... 1,777 .25 2.027 .27 Sweden ...... 10,231 1.42 10,481 1.39 Grenada ...... 46 .01 296 .04 Syrian Arab Republic . I ... 72 .01 322 .04 Guatemala ...... 306 .04 556 .07 Tanzania...... 724 .10 974 .13 Guinea ...... 134 .02 384 .05 Thailand ...... 4,164 .58 4,414 .58 Guinea-Bissau ...... 18 268 .04 Togo ...... 544 .08 794 .11 Guyana ...... 406 .06 656 .09 Tonga ...... 11 261 .03 Haiti ...... 306 .04 556 .07 Trinidad and Tobago ...... 1,565 .22 1,815 .24 Honduras ...... 184 .03 434 .06 Tunisia ...... 919 .13 1,169 .15 Hungary ...... 2,327 .32 2,577 .34 Turkey ...... -1 ... 4,526 .63 4,776 .63 Iceland ...... 11 261 .03 Uganda ...... I ...... 735 .10 985 .13 India ...... 29,242 4.05 29,492 3.91 United Arab Emirates .... 1,838 .25 2,088 .28 Indonesia ...... 9,107 1.26 9,357 1.24 United Kingdom ..... 5...50,100 6.94 50,350 6.67 Iran, Islamic Republic of . . 372 .05 622 .08 United States .. I ...... 174,488 24.18 174,738 23.16 Iraq ...... 67 .01 317 .04 Uruguay ...... 919 .13 1,169 .15 Ireland ...... 492 .07 742 .10 Vanuatu ...... 55 .01 305 .04 Israel ...... 550 .08 800 .11 Venezuela...... I ...... 7,106 .98 7,356 .97 Italy ...... 28,265 3.92 28,515 3.78 Viet Nam ...... 166 .02 416 .06 Jamaica ...... 1,103 .15 1,353 .18 Western Samoa ...... 9 259 .03 Japan ...... 37,750 5.23 38,000 5.04 YemenArab Republic ..... 184 .03 434 .06 Jordan ...... 633 .09 883 .12 Yugoslavia ...... 2,879 .40 3,129 .41 Kenya ...... 1,041 .14 1,291 .17 Zaire ...... 1,929 .27 2,179 .29 Kiribati ...... 7 257 .03 Zambia ...... I 1,286 .18 1,536 .20 Korea, Republic of ...... 3,621 .50 3,871 .51 Zimbabwe ...... 546 .08 796 .11 Kuwait ...... 4,533 .63 4,783 .63 Total June 30,1987 $721,580 100.00t 754,580 100.00t Lebanon 5...... 0 .01 300 .04 Total June 30, 1986 $601,755 100.00t 633,755 100.00t
Lessthan .005percent. t Maydiffer from thesum ot the individualpercentages shown because of rounding.
45 International Finance Corporation Notes to Financial Statements Exhibit E June 30, 1987and June 30, 1986
NOTEA-SIGNIFICANT ACCOUNTING POLICIES The accountingand reportingpolicies of the Corporationconform to generallyaccepted accounting principles. The Corporation carries its assetsand liabilitiesprincipally on the historicalcost basisand followsthe accrualmethod of accountingexcept where noted otherwise. The significantaccounting policies are summarizedas follows: Investments-Investmentsare recordedat the date investmentcommitments are signed by the Corporationand are reflectedas assets whendisbursed. Translationof Currencies-Equityinvestments disbursed in currenciesother than UnitedStates dollars are expressedin UnitedStates dol- lars at the exchangerates which applied at the timeof disbursement.All otherassets and liabilitiesnot denominatedin UnitedStates dollars areexpressed in UnitedStates dollars at the approximatemarket rates prevailing at June30,1987 and 1986.Translation gains and lossesare creditedor chargedto income. RevenueRecognition-Dividends, profit participations and fees(other than commitment fees) are recordedas incomewhen received. In- terestand commitmentfees are recordedas incomeon an accrualbasis. The Corporation does notrecognize income on loanswhere collec- tibility is in doubt and paymentsof principalor interestare past due morethan sixty days unlessmanagement anticipates that collection will occur in the nearfuture. Any interestwhich has beenaccrued on a loanplaced on a nonaccrualstatus is reversedout of the currentincome. Intereston nonaccrual loans is thereafterrecognized as incomeonly when actual payment is received.Gains on sales of investmentsare meas- uredagainst the averagecost of the investmentssold and are creditedto incomewhen received in freelyconvertible currencies. Unrealized losseson investmentsare providedfor as describedbelow. ReserveAgainst Losses-The Corporationcharges income with a provisionfor losseson investments.The annualprovision represents identifiablelosses on specificinvestments with a significantand relativelypermanent decline in value,and an estimateof potentiallosses not specificallyprovided for Depositsand Securities-Depositsand securitiesare carried at cost or amortizedcost, which approximates market. NOTEB-LOAN AND EQUJITYINVESTMENTS AND RESERVEAGAINST LOSSES
As of June30, 1987investments approved by the Boardof Directorsbut not signedas investmentcommitments totalled $1,047.2 million ($998.4million-1986) of which$367.6 million ($379.8 million-1986) are to be placedwith participants (see Note C) and$679.6 million ($618.6 million-1986) areto be heldby the Corporation.The disbursed portfolio at June30,1987 was $1,550.2 million loans and $327.9 million equity Thecurrency composition of loansdisbursed is as follows($ thousands): US Dollars $906,031 PoundsSterling $3,877 DeutscheMark 479,906 NetherlandsGuilders 1,943 SwissFrancs 112,748 JamaicanDollars 1,417 JapaneseYen 29,470 EuropeanCurrency Unit 113 FrenchFrancs 14,683 Loanson whichthe accrualof interesthas beendiscontinued amounted to $244.5million ($263.0 million-1986). If intereston theseloans hadbeen recognized,income for the fiscal years,net of amountscollected on theseloans of $11.5million ($8.8 million-1986), would have been$17.2 million higher ($21.7 million higher-1986). Changesin the ReserveAgainst Losses are summarizedas follows: FiscalYears Ended June 30 ($thousands) 1987 1986 Balancebeginning of period . . $ 177,663 $ 156,707 Investmentswritten off, netof recoveries...... (31,887) (18,051) Provisioncharged to income... 52,023 39,007 Balanceend of period $...... $ 197,799 $ 177,663 NOTEC-PARTICIPATIONS TheCorporation mobilizes funds from commercialbanks and other financial institutions through loan participations. Participations are sold withoutrecourse to the Corporation.The Corporationadministers and servicessuch loan participationson behalf of its participants.The Corporationcalled and disbursed$165.5 and $140.4million of participants'funds during the fiscal yearsended June 30, 1987and 1986, respectivelyAt June30, 1987and 1986undisbursed participants' commitments were $261.8and $243.0 million, respectively NOTED-BORROWINGS Borrowingsoutstanding from the InternationalBank for Reconstructionand Developmentare summarized below: Weighted PrincipalAmount InterestRate Maturity ($ millions) at June30 Dates 1987 1986 1987 1986 US Dollars $ 332 $ 449 7.22% 8.06% 1987-1996 DeutscheMark 312 277 8.77% 8.90% 1987-1999 SwissFrancs 96 76 6.34% 6.54% 1987-2000 JapaneseYen 33 25 7.65% 7.74% 1987-1999 OtherCurrencies 23 10 10.84% 11.82% 1987-2000 $ 796 $ 837
46 International Finance Corporation Notes to Financial Statements(continued) June 30, 1987 and June 30, 1986
The proceedsof these loans mayonly be used by the Corporationin its lendingoperations, Principal and interestare payablein the currencyborrowed. The principalamounts repayable in all currenciesduring the fiscalyears ending June 30. 1988through June 30, 1992 are $69, $80, $80, $72and $69 respectivelyand $426million thereafter. A commitmentfee is payableon the undrawnbalances of the loansat ratesfrom 2/5 to 3/4 of 1%per annum.For the fiscal year ended June30, 1987such feesaggregated $3.4 million($3.5 million-1986). Borrowingsoutstanding from othersare summarizedbelow: Weighted PrincipalAmount InterestRate Maturity ($Millions) atJune 30 Dates 1987 1986 1987 1986 USDollars $ 355 $ 150 8.81% 9.54% 1996 DeutscheMark 159 132 6.52% 6.52% 1992-1996 Japanese Yen 68 - 5.50% - 1997 Swiss Francs 66 - 4.75% - 1993 EuropeanCurrency Unit 62 54 6.63% 6.63% 1995 Netherland Guilders 25 - 6.64% - 1993-1999 US DollarsDiscount Bonds 50 50 8.00% 8.00% 1995 US DollarsAnnuity Bonds 8 9 10.85% 10.85% 1988-1995 Less: UnamortizedDiscount (8) 50 (9) $ 785 $ 386 Principaland interestare payablein the currencyborrowed. The principalamounts repayable on the annuitybonds during the fiscalyears ending June 30, 1988through June 30, 1992are approximately$.8 million each year and $3.6 million thereafterUnder its borrowing agreements,the Corporationis not permittedto mortgageor allow a liento be placedon its assets(other than purchasemoney security interests)without extending equivalent security to the holdersof suchborrowings. The Corporationhas entered into currency swap agreements in whichproceeds of borrowingsare convertedinto a differentcurrency and, simultaneously,a forward exchange agreement is executedin orderto recoverthe currencyconverted. The currencyswaps are summarized below: Weighted AverageCost Payable(Receivable) (return)% Maturity I$ millions) at June30 Dates 1987 1986 1987 US Dollars $ 90 $ 52 7.00 1987-2000 JapaneseYen (68) - (5.50) 1997 EuropeanCurrency Unit (62) (54) (6.93) 1995 DeutscheMark 41 - 5.63 1994 NetherlandsGuilders (13) - (8.75) 1990-2000 SwissFrancs 4 4 8.50 1987-1992 Net receivablesof $8.3 millionresult primarilyfrom exchangerate movementsoccurring subsequent to the dates of the swaps (net payableof $1.8million-1986). The Corporationhas also entered into interestrate swapagreements with respectto notionalprincipal amountsof $200million ($100 million-1986) underwhich it is obligatedto makeinterest payments on a variablerate basis,averaging 6.97%, in exchangefor fixed rate payments,averaging 9.27 %. As a resultof currency and interestswap agreements, the chargeson borrowingswere reduced by $4.6 million($1.6 million-1986). NOTEE-CAPITAL STOCK On December26, 1985the Boardof Governorsapproved a resolutionincreasing the authorizedcapital to $1,300,000,000.The resolution, as amended,also allocated$650,000,000 for additionalsubscriptions by membersduring a subscriptionperiod ending August 1, 1987. Membersmay elect to pay subscriptionsin full or in installmentspayable not laterthan August 1, 1989.
NOTEF-OTHER MATTERS Guarantees-The Corporationand otherfinancial institutions have guaranteed the paymentof principaland intereston debt issues by DomeInvestments Limited in Cyprus,Lanka Orient Leasing Company Limited in Sri Lankaand the FalconFund Limited in Jamaica.The Corporation'sparticipation in the outstandingguaranteed debt at June30, 1987was limited to approximately$5.4 million. Contribution-On December5, 1985the Boardof Directorsapproved a recommendation,modified on May 21, 1986,under which the Corporationwill contributea total of $2 millionto the Africa ProjectDevelopment Facility Duringthe fiscal year endedJune 30, 1987the Corporationcontributed $500,000. The remainingamount will be paid in three equal installmentsof $500,000each duringthe fiscal years endingJune 30, 1988through June 30, 1990. Staff RetirementPlan-The InternationalBank for Reconstructionand Developmenthas a contributoryretirement plan for its staff, which alsocovers the staffof the Corporation.The staff contribute a fixed percentageof pensionableremuneration and the Bankand the Corporation contributethe remainderof the cost of fundingthe Plan.The total contributon is determinedin accordancewith an aggregate funding method. Thecost of the Planis fundedas accrued.The total cost allocatedto the Corporationfor the fiscalyear ended June 30, 1987was $5,891,366 ($5,649,100-1986).All contributionsto the Planand all other assetsand incomeheld for the purposesof the Plan are held by the Bank separatelyfrom the otherassets and income of the Bankand Corporationand can be used onlyfor the benefitof the participantsin the Plan and their beneficiariesuntil all liabilitiesto themhave been discharged. Serviceand SupportFee-The InternationalBank for Reconstructionand Developmentcharges the Corporationan annualService and SupportFee, which for the yearended June 30. 1987was fixed at $3,340,000($3,130,000-1986).
47 Financial Statements Covered by the Report of Independent Accountants Foregoing Report
1801K Street,N.W BalanceSheet Washington,D.C. 20006 Statementof Income July 29, 1987 Statementof Changesin FinancialPosition Statementof CapitalStock and VotingPower Price !itterhouse Notesto FinancialStatements
Presidentand Board of Governors, InternationalFinance Corporation
In our opinion,the accompanyingfinancial statements presentfairly, in termsof UnitedStates Dollars, the financial positionof InternationalFinance Corporation at June30, 1987and 1986,and the resultsof its operationsand the changesin its financialposition for the yearsthen ended, in conformitywith generallyaccepted accountingprinciples consistentlyapplied. Our examinationsof thesestatements were madein accordancewith generallyaccepted auditing standardsand accordinglyincluded such testsof the accountingrecords and such other auditingprocedures as we considerednecessary in the circumstances.
48 APPENDICES
Governorsand Alternates 50
Directorsand Alternates and Their VotingPower 52
BankingAdvisory Panel and BusinessAdvisory Council 53
TheYear's Investments 54
InvestmentPortfolio 64
Statementof Cumulative GrossCommitments 74
IFC Management 75
49 Governors and Alternates Appendix A As of June 30, 1987
Member Governor Alternate
Afghanistan...... MohamadKabir ...... Abdul GhafoorJoushan Antiguaand Barbuda...... John E. St.Luce ...... LudolphBrown Argentina...... JuanVital Sourrouille...... JoseLuis Machinea Australia...... PJ. Keating. R. B. Dun Austria...... FerdinandLacina .Othmar Haushofer Bahamas,The...... Sir Lynden0. Pindling.Ethelyn C. Isaacs Bangladesh...... M. Syeduz-Zaman.M. K. Anwar Barbados...... RichardC. Haynes.Stephen E. Emtage Belgium...... M. Eyskens.Jean Godeaux Belize...... Dean Barrow.Sir HenryE. C. Cain Benin...... MohamedSouradjou Ibrahim .Saliou Aboudou Bolivia...... JuanCariaga Osorio .Javier NogalesIturri Botswana...... PS. Mmusi.Baledzi Gaolathe Brazil...... Luiz CarlosBresser Pereira .Fernando Millietde Oliveira BurkinaFaso ...... Talata Eugene Dondasse .Youssouf Ouedraogo Burma...... TunTin .Nyunt Maung Burundi...... IsaacBudabuda .Anselme Habonimana Cameroon...... SadouHayatou .Simon NgannYonn Canada...... Michael. H. Wilson.Margaret Catley-Carlson Chile...... HernanBuchi .Jorge SelumeZaror China...... WangBingqian .Li Peng Colombia.... . Luis FernandoAlarcon-Mantilla .Francisco J. Ortega Congo,People's Republic of the ...... PierreMoussa ...... AndreBatanga CostaRica ...... FernandoE. Naranjo...... EduardoLizano Fait Coted'lvoire ...... AbdoulayeKone .Leon Naka Cyprus...... ChristosMavrellis.George V Hadjianastassiou Denmark...... Uffe Ellemann-Jensen.Bjorn Olsen Djibouti...... MohamedDjama Elabe .Ahmed SamirehOmar Dominica...... MaryEugenia Charles .Alick B. Lazare DominicanRepublic ...... Luis JulianPerez .Opinio AlvarezBetancourt Ecuador...... RodrigoM. Espinosa.Marco FloresT Egypt,Arab Republicof ...... KamalEl-Ganzoury ...... ErfanA. Shafey El Salvador...... JoseRicardo Perdomo ...... FidelChavez Mena Ethiopia...... WollieChekol ...... BekeleTamirat Fiji ...... MahendraPal Chaudhry .. JoneY Kubuabola Finland ...... Erkki Liikanen...... OsmoSarmavuori France...... Jacquesde Larosiere...... DanielLebegue Gabon...... PascalNze ...... J. FelixMamalepot Gambia,The ...... SheriffS. Sisay...... M. M. Jagne Germany,Federal Republic of ...... HansKlein ...... HansTietmeyer Ghana...... KwesiBotchwey ...... KwesiBekoe Amissah-Arthur Greece ...... ConstantineSimitis ...... YannisPapantoniou Grenada...... HerbertAugustus Blaize ...... LauristonF. Wilson, Jr. Guatemala...... RodolfoPaiz Andrade ...... LizardoArturo Sosa L6pez Guinea...... EdouardBenjamin ...... KertallaYansane Guinea-Bissau...... PedroA. GodinhoG6mes ...... Jos6Lima Barber Guyana...... Carl Greenidge...... W HaslynParris Haiti ...... LeslieDelatour ...... Onill Millet Honduras...... J. EfrainBu Gir6n ...... GonzaloCafias Pineda Hungary...... Mikl6sPulai ...... Tibor Melega Iceland.... MatthiasBjarnason ...... ThorsteinnPalsson India. ... S. Venkitaramanan...... J. L. Bajaj Indonesia. __ . Arifin M. Siregar...... SoegitoSastromidjojo Iran, IslamicRepublic of ...... MohammadJavad Iravani ...... SeyedAli AkbarAfjei Iraq ...... HishamHassan Tawfik ...... SubhiFrankool Ireland ...... RayMacSharry ...... SeanP Cromien Israel...... MichaelBruno...... EmanuelSharon Italy ...... CarloAzeglio Ciampi ...... GiuseppePasqua Jamaica...... EdwardSeaga ...... HeadleyBrown Japan...... Kiichi Miyazawa...... SatoshiSumita Jordan...... TaherH. Kanaan...... MohammadH. Al-Saqqaf Kenya...... GeorgeSaitoti ...... CharlesS. Mbindyo Kiribati...... TeataoTeannaki ...... BeniaminaTinga Korea,Republic of ...... 11Sakong...... SungSang Park Kuwait...... JassimMohamed Al-Kharafi ...... BaderMishari Al-Humaidhi Lebanon...... Habib Abou-Sakr...... Raja Himadeh Lesotho ...... MichaelM. Setali...... KevinM. Manyeli Liberia...... J. RudolphJohnson ...... ThomasD. VoerHanson Libya ...... MohamedEl MadniAl-Bukhari ...... BashirAli Khallat Luxembourg...... JacquesSanter ...... RaymondKirsch
50 Governors and Alternates (continued) As of June 30, 1987
Member Governor Alternate
Madagascar...... PascalRakotomavo ...... JeanRobiarivony Malawi...... L. Chimango...... A. A. Upindi Malaysia...... Daim Zainuddin...... ZainAzraai Maldives...... FathullaJameel ...... B. IbrahimSaleem Mali ...... OusmaneM. Diallo...... IbrahimaBocar Ba Mauritania...... MohamedSalem Ould Lekhal ...... MohamedouOuld Michel Mauritius...... DwarkanathGungah ...... MadhukarlallBaguant Mexico...... GustavoPetricioli ...... ErnestoMarcos Giacoman Morocco...... MohamedBerrada ...... MustaphaFaris Mozambique...... AbdulMagid Osman ...... Eneasda ConceicaoComiche Nepal...... BharatBahadur Pradhan ...... Lok BahadurShrestha Netherlands...... H. 0. Ruding...... P Bukman NewZealand ...... GrahamC. Scott ...... RichardF. Shallcrass Nicaragua...... JoaquinCuadra Chamorro ...... PedroAntonio Bland6n Lanzas Niger ...... AlmoustaphaSoumaila ...... AmadouNouhou Nigeria...... ChuS. P Okongwu...... AlhajiU. K. Bello Norway...... GunnarBerge ...... HansChristian Bugge Oman...... QaisAbdul MunimAl-Zawawi ...... SherifLotfy Pakistan...... MianMohammad Yasin Khan Wattoo ...... M. A. G. M. Akhtar Panama...... RicaurteVasquezM ...... HectorAlexander PapuaNew Guinea ...... GalevaKwarara ...... JohnVulupindi Paraguay...... CesarRomeo Acosta ...... I ...... CarlosAlberto Knapps Peru...... Luis AlvaCastro ...... GustavoSaberbein Chevalier Philippines...... JaimeV Ongpin...... SolitaC. Monsod Portugal...... MiguelCadilhe ...... (vacant) Rwanda...... VincentRuhamanya ...... EmmanuelNdahimana St. Lucia...... JohnG. M. Compton...... DwightVenner SaudiArabia ...... MohammadAbalkhail ...... HamadSaud Al-Sayari Senegal...... CheikhHamidou Kane ...... YoussouDiop Seychelles...... D. de St.Jorre...... E. Faure SierraLeone...... ShekaH. Kanu...... PeterJ. Kuyembeh Singapore...... RichardHu Tsu Tau...... Lee EkTieng SolomonIslands ...... GeorgeKejoa ...... John Rofeta Somalia...... MohamedSheikh Osman ...... MohamudMohamed Nur SouthAfrica ...... G. PC. de Kock...... J. A. Lombard Spain...... CarlosSolchaga Catalan ...... MarianoRubio Jimenez Sri Lanka...... Ronniede Mel ...... BalakumaraMahadeva Sudan...... BashirOmer Fadlalla ...... El SayidAll Zaki Swaziland...... KennethMbuli ...... V E. Sikhondze Sweden...... Kjell-OlofFeldt ...... LenaHjelm-Wallen SyrianArab Republic...... KahtanAl-Siufi ...... MarwanKodsi Tanzania...... CleopaD. Msuya...... GilmanRutihinda Thailand...... SutheeSinghasaneh...... PanasSimasathien Togo...... Barry MoussaBarque ...... ComlanviTamata Addra Tonga...... JamesCecil Cocker...... SelwynPercy Jones Trinidadand Tobago...... A. N. R. Robinson...... SelbyWilson Tunisia...... IsmailKhelil ...... Zein Mestiri Turkey...... YavuzCanevi...... YenerDincmen Uganda...... C. W C. B. Kiyonga...... J.Kahoza UnitedArab Emirates ...... HamdanBin Rashid Al Maktoum...... AhmedHumaid Al-Tayer UnitedKingdom ...... RobertLeigh-Pemberton...... Sir PeterMiddleton UnitedStates ...... JamesA. Baker,Ill ...... W AllenWallis Uruguay...... RicardoZerbino Cavajani ...... Ariel Davrieux Vanuatu...... KaipokorKalsakau ...... MartinTamata Venezuela...... ManuelAzpurua Arreaza ...... HectorHurtado VietNam ...... Lu MinhChau ...... Le Hoang WesternSamoa ...... FaasootauloaS. P Saili...... KoloneVa'ai YemenArab Republic...... MohammedSaeed Al-Attar ...... KaidMohammed Al-Hirwi Yugoslavia...... SvetozarRikanovic ...... BorisSkapin Zaire...... NyemboShabani ...... BazundamaLuzumbulu Mbandanu Zambia...... GibsonG. Chigaga...... JamesMtonga Zimbabwe...... B. T G. Chidzero...... K. J. Moyana
51 Directors and Alternates and Their Voting Power Appendix B June 30, 1987 Director Alternate CastingVotes of TotalVotes % of Total Appointed Robert B. Keating ...... Hugh W Foster ...... United States .174,73 ...... 174,738 23.35 Tim Lankester...... J. A. L. Faint ...... UnitedKingdom ...... 50,350 6.73 GerhardBoehmer ...... Michaelvon Harpe ...... FederalRepublic of Germany ... _ .... 49,316 6.59 Helene Ploix ...... Olivier Debains ... . France ...... 43,885 5.87 Kenji Yamaguchi ...... Zenbei Mizoguchi ...... Japan ...... 38,000 5.08 Elected C. R. KrishnaswamyRao Sahib M. MustafizurRahman Bangladesh,India, Sri Lanka . 35,709 4.77 (India) (Bangladesh) Mario Draghi ...... Rodrigo M. Guimaraes ...... Greece, Italy, Portugal ...... 33,962 4.54 (Italy) (Portugal) Jacques de Groote...... HeinerLuschin ...... Austria, Belgium,Hungary, Luxembourg, (Belgium) (Austria) Turkey ...... 33,217 4.44 C. Ulrik Haxthausen...... VeikkoKantola ...... Denmark, Finland,Iceland, Norway, (Denmark) (Finland) Sweden ... 31,229 4.17 Frank Potter...... Horace Barber...... Antigua and Barbuda,The Bahamas, (Canada) (Jamaica) Barbados,Belize, Canada, Dominica, Grenada,Guyana, Ireland, Jamaica, St. Lucia.31,076 4.15 PaulArlman ...... Cvitan Dujmovic...... Cyprus, Israel,Netherlands, Yugoslavia. 26,608 3.56 (Netherlands) (Yugoslavia) MercedesRubio ...... FranciscoVannini ...... Costa Rica, El Salvador,Guatemala, (Spain) (Nicaragua) Honduras,Mexico, Nicaragua, Panama, Spain,Venezuela ...... 25.588 3.42 MurrayA. Sherwin...... RobertG. Carling ...... Australia, Kiribati, Korea(Republic of), (New Zealand) (Australia) New Zealand,Papua New Guinea, SolomonIslands, Vanuatu,Western Samoa .. ... 25,131 3.36 PedroSampaio Malan ...... CarlosSanclemente ...... Brazil,Colombia, Dominican Republic, (Brazil) (Colombia) Ecuador,Haiti, Philippines . . 24,943 3.33 Modh. RamliWajib ...... KikhamVongsay ...... Burma, Fiji, Indonesia,Malaysia, Nepal, (Malaysia) (Lao People's Singapore,Thailand, Tonga, Viet Nam,.. DemocraticRepublic) 22,750 3.04 FelixAlberto Camarasa ...... Claudio R. Pardo ...... Argentina,Bolivia, Chile, Paraguay,Peru, (Argentina) (Chile) Uruguay. 22,323 2.98 Mitiku Jembere...... J. S. A. Funna...... Botswana,Burundi, Ethiopia,The Gambia, (Ethiopia) (Sierra Leone) Guinea,Kenya, Lesotho, Liberia,Malawi, Mozambique,Nigeria, Seychelles, Sierra Leone,Sudan, Swaziland,Tanzania, Trinidadand Tobago,Uganda, Zambia, Zimbabwe ...... 20,446 2.73 Fawzi HamadAl-Sultan ...... MohamedW Hosny ...... Egypt (Arab Republicof), Iraq, Jordan, (Kuwait) (Arab Republicof Kuwait,Lebanon, Maldives, Oman, Egypt) Pakistan,Syrian Arab Republic,United Arab Emirates,Yemen Arab Republic ... 20,228 2.70 Jobarah E. Suraisry ...... MohammadA. Al-Shawi...... Saudi Arabia ...... 12,965 1.73 (SaudiArabia) (SaudiArabia) Andre Milongo ...... Jean-PierreLe Bouder ...... Benin, BurkinaFaso, Cameroon, Congo (People'sRepublic (CentralAfrican (People'sRepublic of the),Cote d'lvoire, of the Congo) Republic) Djibouti, Gabon,Guinea-Bissau, Madagascar,Mali, Mauritania,Mauritius, Niger,Rwanda, Senegal, Somalia, Togo, Zaire...... 11,667 1.56 MouradBenachenhou ...... SalemMohamed Omeish ..... Afghanistan,Ghana, Iran (Islamic (Algeria) (Libya) Republicof), Libya,Morocco, Tunisia .... 7,703 1.03 Xu Naijiong. .... Zhang Junyi ...... China ...... 6,388 0.85 (China) (China) In additionto the Directorsand Alternates shown in the foregoinglist, the followingalso served after October 31, 1986:
Director Endof periodof service: AlternateDirector Endof periodof service: RonaldH. Dean ...... April 30, 1987 MariaAntonieta Dominguez ...... May31, 1987 (Australia) (Honduras) GholamKibria January19, 1987 (Bangladesh) YouKwang Park . February28, 1987 (Republicof Korea) YangGuanghui ...... November30, 1986 (China) Note:South Africa (6,358votes) did notparticipate in the 1986Regular Election of Directors.
52 Appendix C Banking Advisory Panel
IFC's BankingAdvisory Panel meets regularlywith the Corporation'smanagement to discussits activitiesand policies.The Corporation wishesto expressits appreciationfor the valuableadvice the panel membershave given.
Abdiatit y Al-Hamad Director General Dr Conrad Oort Member of Managing Board Arab Fund for Economic and Algemene Bank Nederland, Social Development,Kuwait Amsterdam Jan Ekman President Lord Roll of lpsden Chairman Svenska Handelsbanken, S.G. Warburg and Co., Ltd., Stockholm London Dr, Wilfried Guth Chairman of the Supervisory Robert V Roosa Partner Board Brown Brothers Harriman and Deutsche Bank A.G., Frankfurt Co., New York Jean-Yves Haberer President d'honneur Anthony Solomon Chairman Banque PARIBAS,Paris S.G. Warburg (USA) Inc., New Yusuke Kashiwagi Chairman York The Bank of Tokyo,Ltd., Tokyo
Business Advisory Council
The BusinessAdvisory Council, which heldits first meetingin May, 1987 will advise the Corporation'smanagement on the needs and views of businessand industryin connectionwith IFC's activities.The Council'smembers are businessleaders from bothdeveloping and industrializedcountries.
S. Babar Ali Advisor Carlo Patrucco Vice Presidente Packages Limited CONFINDUSTRIA Lahore, Pakistan Rome, Italy Jaime Zobel de Ayala President and Chairman Rong Yiren Chairman of the Board of Directors China InternationalTrust and Ayala Corporation InvestmentCorporation Makati, Metro Manila Beijing, China Philippines Ismail Sabry President and Managing Director Thomas J. Bata Chairman of the Board National Co. for Maize Products Bata, Limited Cairo, Egypt Don Mills, Ontario, Canada Ibrahim A. Salamah Vice Chairman and Chief Michael H. Caine Chairman Executive Officer Booker plc Saudi Basic Industries London, England Corporation Suck Rai Cho Chairman Riyadh, Saudi Arabia Hyosung Group Lorenzo Servitje Presidente, Consejo Seoul, Korea Administrativo Mustapha Faris President Director General Grupo Industrial Bimbo S. A. Banque Nationale pour le Mexico City, Mexico DeveloppementEconomique Janko Smole Former Federal Minister of Rabat, Morocco Finance Javier I. Gamboa Chairman Belgrade, Yugoslavia Alpargatas S.A.I.C. Paul Soppo Priso Director General Buenos Aires, Argentina Soppo Priso Carl H. Hahn Chairman, Board of Management Douala, Cameroon Volkswagen,A.G. Julius Tahija Chairman of the Board of Wolfsburg, Germany Commissioners W Sidney Knox Chairman and Chief Executive P T Caltex Pacific Indonesia Neal & Massy Holdings Limited Jakarta, Indonesia Port of Spain, Trinidad ToshioTakeuchi Chairman Rahmi M. Koc Chairman, Board of Directors Toyo Menka Kaisha, Ltd. Kog Holding A.S. Tokyo,Japan Istanbul, Turkey Tun Tan Siew Sin Chairman Keshub Mahindra Chairman Sime Darby Berhad Mahindra & Mahindra Limited Kuala Lumpur, Malaysia Bombay, India Jean Louis Vilgrain President Jorge Mejia S. Consejero Junta Directiva Grands Moulins de Paris Banco de Bogota Paris, France Bogota, Colombia Paulo D. Villares Chairman of the Board and Tarrin Nimmanahaeminda President and Chief Executive President Officer Ind6strias Villares SA The Siam Commercial Bank, Ltd. Sao Paulo, Brazil Bangkok, Thailand Joseph B. Wanjui Chairman Daniel Parker Formerly of Parker Pens Inc. East Africa Industries Limited Charleston, South Carolina, USA Nairobi, Kenya
53 The Year's Investments Appendix D
Investments Approved by the Board of Directors Project Sector (US$ thousands equivalent as of June 30, 1987) IFC Cost
Argentina MF Arcor S.A.l.C.'s project to expand and diversify production of packag- Loan $12,000 $ ing materials and foodstuffs will result in lower packaging costs, gener- Equity ate additional exports of about $3 million per year as well as strengthen Syndications - its position in Argentina's food market. Total 12,000 55,900
CM Banco General de Negocios S.A. will administer an IFC line of credit Loan 10,000 to help finance new projects, as well as the modernization and expan- Equity sion of medium-size private enterprises. Syndications - Total 10,000 20,000
DF Banco Rio de /a Plata, S.A. will onlend IFC's line of credit to finance Loan 30,000 qualified private enterprises in agriculture, agro-industry and related Equity services which account for 30 percent of the country's Gross National Syndications - Product and 75 percent of the country's foreign exchange earnings. Total 30,000 30,000
EM The ChiretelMorillolOllerosOil ExplorationProgram in the Northwest Loan Cretaceous Basin, which will be carried out as a joint venture be- Equity 5,200 tween Pluspetrol, S.A. of Argentina, BHP Petroleum (Americas) Inc. Syndications - and IFC will include seismic work, drilling and exploring of up to five Total 5,200 33,000 wells over a period of three years.
CC Juan Minetti, S.A.* is undertaking a restructuring program which is Loan 8,000 being assisted by IFC. Equity Syndications - Total 8,000 25,700
MF S.A. Garovaglio y Zorraquin will undergo a restructuring program. The Loan 15,000 project includes divesting of less profitable businesses in the agro- Equity 2,000 industry sector, modernization and expansion of its petrochemical Syndications - and manufacturing facilities, introduction of new product lines, and Total 17,000 83,000 the privatization of one of its subsidiaries.
TS Terminal 6 S.A. will construct a port and handling facilities on the Par- Loan 5,500 ana River to handle exports of grains, oilseed and pellets. The facili- Equity ties will be capable of handling increasing amounts of agricultural ex- Syndications ports and will contribute to reducing port and related export costs. Total 5,500 22,000
Barbados TS Grand Bay Beach Resort will renovateits 133-room hotel into a mod- Loan 1,250 ern, first-class resort hotel. The hotel, which is located on Carlisle Bay Equity near Bridgetown, will have a full range of amenities including executive Syndications - suites for business travelers. Total 1,250 5,000
Bolivia EM Compania Minera Concepcion S.A. will process recovered silver from Loan 1,200 mine dumps near the old Cerro Rico de Potosi silver mine. COMCO Equity will use a low-cost heap leaching process to extract an anticipated Syndications 726,800 ounces of silver per year for export. Total 1,200 4,500
Brazil PT Amapa Florestal e Celulose S.A. will be embarking on an expenditure Loan 14,000 program which will include wood harvesting and transportation equip- Equity ment; port terminal facilities for storing and loading logs, wood chips Syndications - (for export to pulp producers primarily in Scandinavia and Japan) and Total 14,000 72,000 charcoal briquettes; machinery and equipment for chipping logs and making charcoal briquettes out of waste bark; and planting of 7,700 hectares of forest annually over five years to bring the plantation to its final 77,000 hectares.
MF Duratex S.A. a leading producer of hardboard, particle board and ce- Loan 7,370 ramics, is undertaking a project to expand the production facilities of Equity one of its subsidiaries and establish another. The Sao Paulo plant will Syndications - increase its annual production by 3.6 million square meters of finish Total 7,370 29,400 foil boards and 2.4 million square meters of low pressure finished boards. The new company in Bahia will produce about 85,000 cubic yards per year of particle board and 2.5 million square meters of fin- ish foil boards.
54 The Year's Investments (continued)
InvestmentsApproved by the Board of Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
Brazil(continued) CP FabricaCarioca de Catalisadoreswill constructand operatea plant Loan $20,500 $ capable of producing25,000 tons per year of catalyststo be used by Equity oil refineriesin the productionof gasoline,diesel oil andother lighter Syndications _ products.The projectwill help reducedependence on importsof criti- Total 20,500 84,900 cal products. EM MineracoesBrasileiras Reunidas. S.A., Brazil's second largest ore pro- Loan 20,000 ducer,will undertakea programto expandand modernizeits existing Equity processingfacilities to produce,at full capacity,6 milliontons a yearof Syndications _ salableores. The projectwill also provideconsiderable transportation Total 20,000 82,000 infrastructureand a newtailings dam.
FA PerdigaoS.A. Comercio e Industria*,second largest producer of pork Loan 20,000 and poultryproducts, will consolidateits expandedoperations, im- Equity prove profitabilityand furtherexpand processingfacilities from the Syndications _ present232,000 metric tons to 304,000metric tons per yearby 1990. Total 20,000 136,800
CP PetroquimicaTriunfo S.A.* is undertakinga restructuringprogram Loan whichis beingassisted by IFC. Equity 50 Syndications a Total 50 800 CP PolisulPetroquimica S.A.* made a stock offeringto shareholdersto Loan which IFCsubscribed. Equity 1,000 Syndications _ Total 1,000 1,000
CP PPH-CompanhiaIndustrial de Polipropileno*will build a single Loan 12,400 100,000tons per year polypropyleneline-which is adjacentto its ex- Equity isting plant at Triunfo-using a newprocess technology developed by Syndications = its technicalpartner. Total 12,400 52,700
MF SaoPaulo Alpargatas S.A. will embarkon a three-and-a-haltyear pro- Loan 30,000 gram aimed at expandingand modernizingits productionfacilities Equity and also help the Companymaintain market position, favorable cost Syndications = structureand high profitability. Total 30,000 184,400
Burundi MF Verreriesdu Burundi,S.A.R.L.* is undertakinga restructuringpro- Loan gram,as part of whichIFC is subscribingto an increasein the Com- Equity 250 pany'sshare capital. Syndications _ Total 250 4,700 Cameroon MF PrestigeBottling Company will establishand operate a plantto bottle Loan 2,740 PepsiCola Internationalproducts including Pepsi Cola, Seven-Up Equity 280 and Pepsi'sMirinda brands. The 15,000thirty-centiliter bottles per Syndications _ hourplant witha maximumannual capacity of 2,000,000cases on a Total 3,020 7,800 two-shiftbasis is plannedin Douala.The project,with an attractive financialreturn, has the potentialto introducesoft drinksbased on local raw materials.
Chile CP Cape Horn MethanolLtd.* (formerlyCabo NegroMethanol Project) is Loan 45,000 undergoinga financialrestructuring to permitcompletion of a projectto Equity build a self-containedplant on the Straitof Magellannear Punta Arenas Syndications _ with an annualoutput capacity of 748,440tons of methanol.The project Total 45,000 305,000 will also includeproduct storage and shippingfacilities and its location will permitthe use of a deep-waterport to exportmethanol to the UnitedStates, Europe and Japan. PT CelulosaArauco y ConstitucionS.A. is expandingand modernizingits Loan 15,000 millingoperations to increasebleached sulphate softwood pulp pro- Equity cessingfrom 154,000metric tons to 187,250metric tons per year. Syndications _ The projectwill improveproduct quality, generate additional exports Total 15,000 64,500 and increasecompany profitability.
55 The Year's Investments (continued)
tnvestmentsApproved by the Boardof Directors Project Sector (US$thousands equivalent as of June30, 1987) iFC Cost
China DF China Investment Company is being established by the Jardine Flem- Loan $3,000 $ ing Group and other foreign investors to seek, identify, promote and Equity 40 invest in medium-size enterprises in China. Virtually all of its invest- Syndications - ments will be in joint ventures with total capital of less than $10 mil- Total 3,040 20,300 lion. The Company will also give advice and assistance in promoting and structuring projects.
MF Shenzhen China Bicycles Co. Ltd., sponsored by local and foreign Loan 5,000 investors, will expand its existing plant to produce, at full capacity, Equity one million bicycles a year, of which 85 percent will be exported. Syndications Total 5,000 17,700
Colombia TE Enka de Colombia, S.A.*, the leading manufacturer of synthetic fibers Loan 560 in Colombia, will be receiving additional funds to finance part of an Equity expected increase in the cost of an earlier project to expand its nylon Syndications - tire fabric production. Total 560 2,200
FA Frigorificos Colombianos S.A.*, the first public cold storage facility in Loan 100 Bogota, is undertaking a restructuring program which is being as- Equity 450 sisted by IFC, Syndications - Total 550 2,200
CM Leasing Bolivar, S.A.*, the country's premier leasing company, which Loan 3,000 provides long-term lease financing of foreign and domestically pro- Equity duced equipment, will expand its operations involving dollar-financed Syndications 2,000 imported equipment. Total 5,000 10,000
CP Productos Derivados de la Sal, S.A. will build and operate a plant with Loan 6,000 a capacity to produce 12,000 metric tons of caustic soda and 10,800 Equity 1,180 tons of chlorine a year. The plant, which will be built in the Cauca Syndications - Valley region, will help reduce the country's reliance on imports of Total 7,180 29,400 these products. The project is expected to generate foreign exchange earnings of $4.5 million a year.
EM Promotora del Gasoducto Central S.A., a promotional company, will be Loan undertaking feasibility studies to develop a gas pipeline/distribution Equity 70 system, the use of gas as fuel, and as feedstock for an ammonia/urea Syndications - complex. Total 70 500
Costa Rica PT Scott Paper Company de Costa Rica, S.A.,* the leading tissue paper Loan 1,500 manufacturer in Central America, will upgrade and expand its pulp Equity 300 mill capacity from 4,000 metric tons to 7,000 metric tons a year. The Syndications - project will also permit substitution of local raw materials for imported Total 1,800 6,000 fiber and will result in substantial foreign exchange savings.
Cote d'lvoire FA Omnium Chimique et Cosmetique, S.A., a leading soap producer, is Loan 2,100 MF diversifying its operation to complement its current production of Equity soaps by the construction of a palm oil processing plant that will pro- Syndications - duce 18,000 tons a year of refined edible oil. The IFC financing will Total 2,100 4,900 also support a restructuring program which will improve the technical, financial and managerial efficiency of the company.
FA Societe des Industries Alimentaires et des Produits Laitiers de Cote Loan 3,190 d'lvoire, S.A. will produce 17,125 tons per year of milk products, Equity 520 mainly reconstituted milk, condensed (sweetened and unsweetened) Syndications - milk, sterilized milk and yoghurt to help supply domestic demand. Total 3,710 13,300
Ecuador DF Compania Financiera Ecuatoriana de Desarrollo S.A,', with IFC's as- Loan 4,000 sistance, will mobilize a $30 million funding package which will help Equity 70 accelerate the Company's ongoing recovery by strengthening and di- Syndications - versifying its lending portfolio. Total 4,070 30,000
56 The Year's Investments (continued)
InvestmentsApproved by the Board of Directors Project Sector (US$thousands equivalent as of June 30, 1987) IFC Cost
Ecuador(continued) CM FacturasInternacionales S.A., the first factoringcompany to be estab- Loan $ - $ lishedin Ecuadorand alsothe first IFCinvestment in a specialized Equity 150 factoring/commercialfinance company, will expandits operationby Syndications - providingworking capital finance and managementservices to pro- Total 150 800 ductiveenterprises through discounting and collectionof accountsre- ceivable. EM Los LilenesEcuador S.A. will exploitalluvial gold depositsin its min- Loan 9,000 ing concessionsto producebetween 1,900 kilograms and 2,500kilo- Equity 4,400 gramsper year of gold. The projectwill be the first large-scale Syndications 4,000 dredge miningoperation in that country. Total 17,400 55,000
Egypt TS BechtelEgypt S.A.E., with assistance from BechtelGroup of the Loan - UnitedStates, Misr IranDevelopment Bank and IFC,will establishan Equity 100 engineeringcompany to provideproject management, maintenance Syndications - and technicalservices originally to Egypt'spower and infrastructure Total 100 1,000 sectorsand, at a later stage,to othersectors.
Ghana EM The KetaBasin OnshoreOil ExplorationProgram, which will be man- Loan - aged and operatedby DiamondShamrock Africa PetroleumB.V., will Equity 4,500 include seismicacquisition, drilling of threeexploration wells andone Syndications - appraisalwell in an areaof approximately650,000 acres in the Keta Total 4,500 30,100 Basin in the southeastcorner of Ghana.
Guinea EM SocieteGuineenne des Granits,a promotionalcompany, will develop Loan 110 a projectto mine high qualitygranite for exportfrom a quarrylocated Equity - near Conakry.The full-scaleproject would produce15,000 cubic me- Syndications - ters per annumof graniteblocks for shipmentto Europe,mainly Italy, Total 110 400 Franceand Germany,for processinginto polishedslabs for use in the constructionindustry.
Haiti FA Promoteurs et InvestisseursAssocies, S.A.*, an integratedpoultry Loan 220 hatchery,farm and processingoperation, is undertakinga comprehen- Equity - siveoperational and financialrestructuring program which is beingas- Syndications - sistedby IFC. Total 220 2,100
Hungary MF HungarianGlass Works will be establishinga joint ventureto produce Loan 3,440 4,000tons per yearof glasswool productsfor a wide varietyof insu- Equity 1,390 lation purposesto meetthe growinglocal demandfor such materials Syndications - in the constructionand industrialsectors. Nitto Bosekiand Toyo Total 4,830 20,400 MenkaKaisha of Japanwill participatein the jointventure. FA Ajoint venturecompany is being establishedtogether with Kyowa Loan 8,550 HakkoKogyo Ltd., andToyo Menka Ltd. of Japan and a local cooper- Equity 2,700 ativeto build a plant to produce 5,000tons per year of L-Lysine,one Syndications - of the essentialproteins used as a feed supplementfor pigs and Total 11,250 45,000 poultry.Technology and know-howwill be providedby KHK.
CM UNICBANK,Rt. will provide a broadrange of bankingand other finan- Loan - cial servicesto Hungarianenterprises. The project, IFC'sfirst invest- Equity 3,140 mentin Hungary,will operateas a profit-orientedbank that will mobi- Syndications - lize short, mediumand long-termdeposits from cooperatives,state Total 3,140 20,000 and joint-ventureenterprises and provideloans to financeworking capitaland fixed asset investments.Deutsche Genossenschaftsbank and GenossenschaftlicheZentralbank will provideequity financing and technicalassistance.
57 The Year's Investments (continued)
InvestmentsApproved by the Boardof Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
India CP GujaratNarmada Valley Fertilizers Company Limited will construct Loan $35,630 $ and place into operationa nitrophosphatefertilizer complex that will Equity produceweak nitric acid, ammoniumnitrophosphate, and calcium Syndications _ ammoniumnitrate. The projectis designedto use the Company'sam- Total 35,630 182,200 moniasurplus and help Indiadiversify its sourcesof phosphaticfertil- izers.
AV HindustanMotors Limited, with technicalassistance from lsuzuMotors Loan 37,640 Limitedof Japan,will undertakean expansionand modernizationpro- Equity gram to produceup to 15,000fuel-efficient power trains and 15,000 Syndications - heavycommercial vehicles per year.The project is partof a majorin- Total 37,640 299,700 vestmentprogram to upgradethe automotivetechnology in that coun- try. CM HousingDevelopment Finance Corporation Limited* made a stockof- Loan fering to shareholdersto which IFCsubscribed. Equity 390 Syndications - Total 390 8,000
AV IndianRayon Corporation Limited' is diversifyingits operations Loan 9,400 CC throughthe constructionof a new carbon blackplant. The plantwill Equity supplycarbon black as a reinforcingagent to the rubberindustry in Syndications - India,where it will be used in the manufactureof tires. The IFCloan Total 9,400 28,600 will helpfinance the foreignexchange costs. MF TitanWatches Limited, with the technicalcollaboration of France Loan 15,200 EbauchesS.A., a Frenchcompany, will constructand operatea facil- Equity 390 ity to manufacturetwo millionquartz analog watches a year in Hosur, Syndications - Tamil Nadu.The project,which will be the first Indianwatch company Total 15,590 51,100 to concentratewholly on the manufactureof quartzanalog watches, is expectedto be in full productionby 1992and will employabout 1,250 people. Indonesia EM BPMinerals Intemational Limited will undertaketwo miningprojects in Loan 3,500 Centraland WestKalimantan-the developmentand operationof PT. Equity 3,400 MonteradoMas alluvial mine to produce 17,000ounces of gold per Syndications 4,500 year andthe explorationof anothermine. Total 11,400 26,400
CC P.T.Semen Andalas Indonesia* is undertakinga restructuringand, in Loan 1,500 support, IFCis providingadditional financing to compietethe pro- Equlty gram. Syndications - Total 1,500 . 18,000
Jordan CP Al-HikmaPharmaceuticals will expandits existingproduction capacity Loan 2,190 withthe constructionof newfacilities and equipmentwhich will result Equity in the increaseof salesfrom $10.1million to $17.4million per annum. Syndications - Total 2,190 5,800
Kenya FA Agro DevelopmentCompany Ltd. will develop4,748 acres of leased Loan 1,250 landto produce annuallyabout 3,000 metric tons of Frenchseed Equity beansfor exportand about 11,500metric tons of hybrid whitemaize Syndications - for local consumption. Total 1,250 5,600
DF DevelopmentFinance Company of KenyaLtd.* will be receivingaddi- Loan 3,750 tional fundingfrom the domesiccapital market which will be guaran- Equity teed by IFCand the other shareholders,to supportthe Company's Syndications - lendingactivities to medium-scaleprivate enterprises for the nextfour Total 3,750 41,000 years.
58 The Year's Investments (continued)
InvestmentsApproved by the Boardof Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
Korea PT Chonju Paper Manufacturing Co. Ltd.* made a stock offering to share- Loan $ - $ holders to which IFC subscribed. Equity 170 Syndications _ Total 170 3,000
MF Ggld Star Company Ltd.* made a stock offering to shareholders to Loan which IFC subscribed. Equity 1,880 Syndications _ Total 1,880 33,900
CM Korea Business Research & Information Inc. will establish a broadly Loan based securities credit rating agency to provide microeconomic re- Equity 190 search, corporate financial information and financial consulting ser- Syndications _ vices to Korean investors. Total 190 4,000
CM Korea Development Leasing Corporation* made a stock offering to Loan shareholders to which IFC subscribed. Equity 250 Syndications _ Total 250 4,700
Madagascar TE Societe Textilede Majunga, S.A.*, an integrated textile mill which pro- Loan 3,690 duces cotton and synthetic fabrics and garments mainly for domestic Equity 10 consumption, will be modernizing its operations by improving the qual- Syndications _ ity and range of exportable fabrics. The Company will also go into pro- Total 3,700 11,200 duction of sewing thread and knitting yarns for the local market.
Malawi PT Viphya Plywood and Allied Industries Limited* will get additional fi- Loan 930 nancing to help an earlier project to construct a plant to manufacture Equity annually 6,500 cubic meters of sawn wood and 7,500 cubic meters Syndications _ each of plywood and blockboard for export and domestic consump- Total 930 1,800 tion.
Malaysia CM The Malaysia Fund Inc., a diversified, closed-end investment com- Loan pany that will invest in Malaysian securities, plans to offer its shares Equity primarily in the United States and other foreign markets with IFC and Syndications/ a U.S. investment firm as co-lead managers. Underwriting 37,950 Total 37,950 84,000 Mexico CC The Crescent Market Aggregates Project will establish a fully inte- Loan 37,000 grated operation to produce, transport, and distribute six million tons Equity per year of crushed limestone construction aggregates. The project Syndications _ includes quarrying and crushing facilities to produce aggregates; a Total 37,000 150,100 bulk materials terminal and port; two self-unloading bulk carrier ships; and distribution network.
FA DESC, Sociedad de Fomento Industrial, SA. de C.V., a large and fi- Loan 4,990 nancially strong, publicly held diversified industrial group, whose Equity poultry operation has been hindered by depressed market conditions, Syndications 1,180 is carrying out a $24.5 million restructuring program to restore Total 6,170 24,500 needed working capital and finance the acquisition of certain critical fixed assets.
CP Industrias Sulfamex, S.A. de C.V. will build a plant to produce, at full Loan 2,000 capacity, 21,000 metric tons per annum of manganese sulphate-a Equity 500 compound used in fertilizers and animal feeds, and in fungicides-for Syndications _ export and domestic consumption. Total 2,500 8,500
AV Metalsa, S.A.* is undertaking a restructuring program which is being Loan 5,000 assisted by IFC. Equity Syndications _ Total 5,000 17,000
59 The Year's Investments (continued)
InvestmentsApproved by the Board of Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
Mexico(continued) AV The SealedPower Mexico ExportExpansion Project, sponsored by Loan $ 9,000 $ local and foreign investors,will constructa plantwhich will increase Equity the productionof coated,alloy and stainlesssteel piston rings from Syndications 27.1 millionper annumto 53 million.The projectwill improvetechnol- Total 9,000 27,500 ogy and broadenproduct range to permita substantialincrease in direct and indirectexport sales.
Morocco DF CreditImmobilier et Hotelier,the principalsource of long-termhotel fi- Loan 25,250 nancingin Morocco,will be providedby IFCwith the foreignexchange Equity requiredto financea substantialnumber of investmentsin the tourism Syndications 25,000 sector.IFC has helpedthe Companyput togethera syndicatedloan in Total 50,250 392,000 variouscurrencies with severalinternational financial institutions. TE SettatFilature, S.A., sponsoredby local and foreigninvestors, will Loan 3,280 constructand operate a spinningmill with20,638 spindles to produce Equity 1,330 2,200tons per year of cottonyarn for export. Syndications - Total 4,610 18,000
Nigeria PA FoodSpecialties (Nigeria) Ltd. will builda maltextract processing Loan 7,500 plantwith an annualcapacity of 2,700tons. The plant'soutput would Equity replacethe importedmalt extract in the manufactureof oneof the Syndications - Company'smajor products which accounts for 15 percentof turnover Total 7,500 15,200 andgross profit. AV DunlopNigerian Industries Limited, sponsored by Nigerianand U.K. Loan 12,500 investors,will expand its existingannual production capacity of Equity 360,000car/truck tires by an additional400,000 radial tires. Syndications - Total 12,500 36,600
Pakistan FA MilkpakLimited* made a stock offeringto shareholdersto whichIFC Loan subscribed. Equity 50 Syndications - Total 50 690 AV Millat TractorsLimited, Pakistan's largest producer of agriculturaltrac- Loan 5,000 tors, will channel$5 millionto its suppliersof tractorcomponents, Mil- Equity lat is participatingin the Government'sprogram to maximizethe use Syndications - of local companiesand manufacturersin the productionof tractors. Total 5,000 25,000
TS PackagesLimited*, on the third phaseof its modernization,expansion Loan 6,750 PT and productdiversification program will constructand operatea 9.4 Equity megawattpower plant capableof supplyingthe entiresteam and Syndications - electricalrequirements of the Company.The projectis aimedat in- Total 6,750 12,800 creasingplant utilization,improving overall plant efficiency, and re- ducing operatingcosts. PT PackagesLimited" made a stockoffering to shareholdersto which Loan IFC subscribed. Equity 170 Syndications - Total 170 1,950
CM PakistanIndustrial Credit and InvestmentCorporation" will managean Loan equity lineon an agencybasis to help financenew projects,moderni- Equity 3,000 zationand expansionof medium-sizeenterprises. Syndications - Total 3,000 6,000
EM ThattaBlock ExplorationProject, which will be operatedby Anglo- Loan Suisse(Pakistan), Inc., will undertakean oil explorationprogram con- Equity 4,260 sistingof seismicacquisition, drilling of three explorationwells and one Syndications appraisalwell. The projectis locatedin the Thattaconcession, 150 kilo- Total 4,260 16,900 meterseast of Karachi.
60 The Year's Investments (continued)
InvestmentsApproved by the Board of Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
Philippines CM First PhilippineCapital Fund L.P., a closed-endfund, is being created Loan $ - $ to assistthe Governmentin the executionof its DebtConversion Pro- Equity 12,500 gram.The projectwill facilitatethe conversionof specificcountry debt Syndications _ obligationsinto equityin local enterprises.A U.S.investment firm will Total 12,500 250,000 act as managerof the Fund. Portugal DF B.P,..-Banco Portuguesde Investimento,S.A.R.L.,* Portugal's first Loan 8,000 majorinvestment bank, will be assistedby IFCin expandingits me- Equity dium and long-termlending operations during the nexttwo years. Syndications 2,000 Total 10,000 20,000 Rwanda MF SocieteRwandaise des Allumettes,sponsored by foreignand local Loan 1,960 investors,is being establishedto takeover a government-owned Equity 190 match factoryas part of a restructuringand rehabilitationprogram Syndications _ which IFCis helpingto finance. Total 2,150 7,400
Thailand CP HMC PolymersCompany Limited will constructa plantto produce,at Loan 15,000 full capacity,100,000 tons per annumof polypropylenefor domestic Equity 2,150 consumption.The projectwill be part of a petrochemicalcomplex Syndications 22,000 being establishedby the NationalPetrochemical Corporation at Map Total 39,150 83,000 Ta Phut on the easternseaboard of Thailand. CP NationalPetrochemical Corporation* will constructa gas based ole- Loan 20,000 fins plant and centralutilities unit whichwill be part of Thailand'sfirst Equity petrochemicalcomplex. The complex,to be locatedin RayongProv- Syndications ince, is comprisedof the upstreamunit which will havea capacityto Total 20,000 293,000 produce 265,000tons per year of ethyleneand 105,000tons per year of propyleneand four downstreamcompanies which will convertthe ethyleneand propyleneinto high densityand low densitypolyethyl- ene, VinylChloride Monomer, and polypropylenefor the domestic market. CC SiamCity CementCo., Ltd.* made a stockoffering to shareholdersto Loan whichIFC subscribed. Equity 1,360 Syndications _ Total 1,360 18,500 FA PhansrivivatCo., Ltd. is establishinga 3,800hectare oil palm planta- Loan 3,600 tion and 30 ton per houroil extractionmill to produce21,600 tons per Equity 1,060 yearof crude palm oil for domesticand exportmarkets. Syndications _ Total 4,660 23,500
CM The MutualFund Company Limited will be managingThe Thailand Loan Fund,the first officiallyauthorized vehicle for portfolioinvestment by Equity foreign investors.The Fundis expectedto bring severalbenefits to Syndications/ the economywhich include long-termequity financing as well as Underwriting 9,330 strengtheninginvestor confidence in the Thaisecurities markets. Total 9,330 25,000
Togo TE PanAtlantic TextileCompany in supportof the Government'songoing Loan 7,000 privatizationprogram, will rehabilitate,modernize and expandtwo of Equity 1,080 the country'slargest state-owned textile mills. The mills will produce Syndications _ 2.6 milliondozens a yearof ready-madegarments and 12million yards Total 8,080 29,700 a yearof Africanprints for exportand domesticconsumption. IS SocieteTogolaise de Siderurgie,S.A. will undertakethe productionof Loan 850 1,845tons per annumof pylonsand structuralbeams made from rein- Equity forcingbars for mediumand high tensionelectrification applications Syndications _ in Togo and neighboringcountries. Total 850 2,000
61 The Year's Investments (continued)
InvestmentsApproved by the Boardof Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
Tunisia TS COMETE Engineering, a joint venture between a leading Belgian en- Loan $ - $ gineering company and a group of local engineers, will provide a Equity 40 wide range of engineering services as well as advice on marketing Syndications - and media techniques to engineering firms in Tunisia, the Middle East Total 40 260 and other French-speaking African countries.
CC Rozzi Edilizzia lndustrializzata Tunisia will construct a plant to pro- Loan 1,250 duce 1.6 million square meters of panels to be used for the construc- Equity 650 tion of low-cost housing. Syndications - Total 1,900 9,900
Turkey MF Turkiye Sise ve Cam Fabrikalari Group's three glass-making compa- Loan 11,480 nies will be modernized to improve production efficiency thereby re- Equity ducing operating costs. The project will also establish a new facility to Syndications - produce 23 million square meters per annum of E-flute paperboard to Total 11,480 27,100 be used in the manufacture of quality retail boxes.
Venezuela CC C.A. Venezolana de Cementos is expanding its plant capacity in Per- Loan 37,600 tigalete from 1.7 million metric tons per year to 2.7 million metric tons, Equity improving cost-efficiency and its competitive position in local export Syndications - markets. Total 37,600 125,100
Yugoslavia DF VojvodjanskaBanka-Udruzena Banka, the sixth largestbank in Yugo- Loan 28,140 slavia, will act as financial intermediary in helping to finance the for- Equity - eign exchange needs of 27 export-oriented industrial enterprises in Syndications 22,320 the textiles, capital goods and miscellaneous manufacturing sectors. Total 50,460 102,900
TS InstitutZa FizikalnuMedicinu / Rehabilitaciji-Dr.Simo Milosevic-Ig- Loan 4,810 a/o*, a medical rehabilitation facility near Dubrovnik, is undertaking a Equity financial restructuring which is being assisted by IFC. Syndications - Total 4,810 8,800
Zaire TE Compagniede DeveloppementRural du Haut-Zairewill implementthe Loan first phase of a program to support the smallholder cotton cultivation in Equity 190 northeastern Zaire. The program will subsequently be expanded to Syndications - other areas. Total 190 9,200
TE Fivecompanies in the UtexafricaGroup, the country'slargest textile Loan 13,030 producer, will be modernizing an existing integrated mill to enable the Equity Group to reduce its operating costs as well as improve product qual- Syndications - ity. Total 13,030 35,200
Zambia FA Gwembe Valley Development Company Limited will develop a 2,100 Loan 3,700 hectare irrigated farm in the Gwembe Valley to grow cotton and con- Equity 800 fectionary groundnuts for export and wheat for domestic consump- Syndications - tion. The project will provide technical assistance, irrigated water, and Total 4,500 13,500 help in the marketing of products to the many smallholders in the area.
FA Zambia Cashew Company Limited will construct a plant to process Loan 900 cashew nuts from smallholders mainly for export. The project will en- Equity 550 courage the development of smallholder production of raw nuts Syndications - through a comprehensive extension service. Total 1,450 4,000
Zimbabwe CM UDC Limited* made a stock offering to shareholders to which IFC Loan subscribed. Equity 220 Syndications - Total 220 1,600
62 The Year's Investments (continued)
InvestmentsApproved by theBoard of Directors Project Sector (US$thousands equivalent as of June30, 1987) IFC Cost
World CM EmergingMarkets Growth Fund* made a stockoffering to sharehold- Loan $ - $ ers to whichIFC subscribed. Equity 15,000 Syndications _ Total 15,000 75,000
TotalLoan $710,000 TotalEquity $ 79,570 TotalSyndications/ Underwriting $130,280 GrandTotal $919,850 $4,342,800 AV automotive/vehicles CC cementand constructionmaterials CM capitalmarkets CP chemicalsand petrochemicals DF developmentfinancing EM energyand mining FA foodsand agribusiness IS ironand steel MF manufacturing PT pulp,paper and timber TE textiles TS tourismand services
*TheCorporation has madeone or moreprevious investments in this company.
63 International Finance Corporation Investment Portfolio Appendix E June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld for the Original Corporation(including Type Fiscalyears in Commitments1 undisbursedbalances) COUNTRY,REGION OR OTHERAREA of whichcommitments Total Total Equity Totalloans AND OBLIGOR business weremade IFC Syndications Loans (atcost) andequity Argentina AlpargatasS.A.I.C ...... TE 1977,1984,1986 $26,935 $ 7,500 $ 20,834 $ 2,000 $ 22,834 Alpesca S.A ...... FA 1979,1983, 1984 6,811 - 3,077 1,611 4,688 AtanorS.A.M ...... O..CP 1987 8,000 - 7,000 1,000 8,000 Banco RobertsS.A ...... CM 1987 10,000 - 10,000 - 10,000 CelulosaArgentina, S.A ...... PT 1965,1972 8,500 4,000 1,300 - 1,300 HidraOil DevelopmentProject ...... O..CP 1987 60,000 20,000 60,000 - 60,000 InversionesIndustriales S.A. and Roberts Participaciones S.A...... CM 1986 1,275 - - 1,275 1,275 IpakoIndustrias Petroquimicas Argentinas S.A .A...... CP 1978,1979, 1982, 1987 20,308 - 6,923 2,000 8,923 Juan MinettiS.A ...... CC 1978,1981,1982,1986,1987 43,000 67,500 23,647 - 23,647 MassuhS.A ...... PT 1978,1985,1987 12,828 3,000 6,530 2,328 8,858 PetroquimicaCuyo S.A.I.C...... O...... CP 1984,1986 39,123 20,536 21,000 4,000 25,000 S.A.Garovaglio y Zorraquin ...... - ...... FA 1987 13,000 - 13,000 - 13,000 SoyexS.A ...... F,AFt 1977,1985 24,992 - 8,592 - 8,592 Terminal6 S.A ...... 0 1987 5,500 - 5,500 - 5,500 187,403 14,214 201,617 Bangladesh BataShoe Company (Bangladesh) Limited ...... MF 1985,1986 3,551 1,415 3,766 509 4,275 IndustrialDevelopment Leasing Company of Bangladesh Limited... i.CM...... 1985 2,880 - 2,736 166 2,902 IndustrialPromotion and DevelopmentCompany of BangladeshLimited ...... DF 1980 1,051 - - 1,051 1,051 6,502 1,726 8,228 Barbados CaribbeanFinancial Services Corporation .... -- ..... CM 1984 300 - - 300 300 Townand Commercial Properties (Barbados) Limited .... TS 1987 1,250 - 1,250 - 1,250 1,250 300 1,550 Bolivia BancoIndustrial, S.A...... O-DF 1976 550 - - 550 550 CompaniaMinera Concepcion, S.A ...... EM 1987 1,200 - 1,200 - 1,200 MolinoAndino S.R.L...... FA 1978 1,300 1,000 286 - 286 Plasmar,S.A ... , MF 1973 359 41 - 100 100 1,486 650 2,136 Botswana BotswanaDevelopment Corporation Limited ...... DF 1979,1985 607 - 607 607 Brazil Acos Villares,S.A ...... IS 1966,1968,1972 7,282 2,644 - 116 116 AmapaFlorestal e CeluloseS.A.-AMCEL ...... PT 1987 14,000 - 14,000 - 14,000 BrasilparComercio e ParticipacoesS.A, ...... CM 1981 1,500 - - 1,185 1,185 CapuavaCarbonos Industriais, Ltda O...... CP 1975, 1979 3,673 3,700 - 841 841 CimentoCaue S.A . , CC 1982 25,000 20,000 15,789 5,000 20,789 CimetatSiderurgia S.A ...... I...... iS 1978,1984 11,380 - 3,280 3,000 6,280 CIMINAS-CimentoNacional de Minas,S.A ...... CC 1972,1975,1981,1987 51,084 154,756 30,000 6,700 36,700 CompanhiaAlcoolquimica Nacional-Alcoolquimica .... CP 1984 24,000 - 18,285 4,000 22,285 CompanhiaBrasileira de Agropecuaria-COBRAPE ..... FA 1981 8,500 - 5,000 3,000 8,000 CompanhiaDende do Amapa-CODEPA...... FA 1983 6,100 - 3,500 - 3,500 Dendedo ParaS/A-DENPASA-Agricultura, Industria e Comerciode Oleaginosas...... FA 1980 4,500 - 2,103 1,000 3,103 Empresade Desenvolvimentode RecursosMinerais "CODEMIN"SA ...... EM 1973,1978,1983 26,140 67,600 1,500 4,340 5,840 FMB S.A.Produtos Metalurgicos ...... -.. IS 1977 20,000 - 4,364 - 4,364 lochpe S/A-ArrendamentoMercantil ("IAM") ...... CM 1982 10,450 20,000 5,000 - 5,000 MineracaoRio do NorteS.A ...... EM 1977 15,000 - 938 - 938 NitroclorProdutos Quimicos S.A ...... CP 1986 8,000 - 3,000 5,000 8,000 PetroquimicaTriunfo S.A ...... CP 1981,1987 19,106 31,000 8,901 4,106 13,007 PetroquimicaUniao S.A ...... O-CP 1969 5,921 2,459 - 2,046 2,046 PISA-Papelde ImprensaS.A ...... PT 1983,1985 33,500 31,670 12,970 3,500 16,470 Poliolefinas,S.A. Industriae Comercio.O. - ...... CP 1970 7,302 1,075 - 1,422 1,422 PolisulPetroquimica S.A, .. i ...... CP 1980,1981,1987 20,999 28,000 11,125 5,999 17,124 PPH-CompanhiaIndustrial de Polipropileno ...... CP 1980 17,000 - 6,502 1,643 8,145 Quimicada BahiaIndustria e ComercioS.A ...... CP 1985 5,286 - 3,448 1,800 5,248 SaoPaulo Alpargatas S.A ...... TE 1987 30,000 - 30,000 - 30,000 SOCOCOS/A-Agroindustrias da Amazonia ...... FA 1983 5,500 - 3,000 2,500 5,500 SotaveAmazonia Quimica e MineralS/A ...... CP 1980,1983 28,000 13,000 14,200 - 14,200 TecanorS.A. Textil Catarinense do Nordesteand Heringdo NordesteS.A.-MALHAS ...... TE 1976,1980 18,200 - 4,507 4,507 VillaresIndustrias de BaseS.A.-VIBASA ...... IS 1980 5,000 - 2,916 - 2,916 Volvodo Brasil Motorese VeiculosS.A ...... AV 1979,1983,1987 16,954 50,000 1,915 6,954 8,869 206,243 64,152 270,395
64 International Finance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) Investnrentsheld for the Original Corporation(including Type Fiscalyears in Commitmentsl undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity Totalloans ANDOBLIGOR business weremade IFC SyndicationsLoans (atcost) andequity
Burkina Faso SocieteVoltaique de PlastiqueSARL (SOVOLPLAS) . .. MF 1979 $ 542 $ - $ 105 $ - $ 105 Burundi Verreriesdu Burundi,S.A.R.L. MF 1981,1982,1987 5,878 - 1,190 1,108 2,298 Cameroon Alucam-CompagnieCamerounaise de l'Aluminium Pechiney-Ugine . . NF 1979 7,932 - 2,500 932 3,432 Bata SocieteAnonyme Camerounaise .. MF 1975 127 253 - 127 127 CotonniereIndustrielle du Cameroun(CICAM) TE 1986 2,981 - 3,275 - 3,275 S.A.F.A.Cameroun, S.A.C . . FA 1977,1979,1981 1,382 - - 1,375 1,375 SocieteCamerounaise de Minoteries FA 1981 1,308 - 561 187 748 SocieteCamerounaise de Verrerie MF 1981 1,802 - - 102 102 Societedes Palmeraiesde la FermeSuisse, S.A FA 1985 2,542 - 2,129 558 2,687 SocieteIndustrielle Laitiere du Cameroun"SILAC" FA 1987 2,828 - 2,252 576 2,828 SocieteSucriere du Cameroun . . FA 1983 1,444 - 1,275 - 1,275 11,992 3,857 15,849 Chile Cape HornMethanol Limited .CP 1986 55,000 - 2,509 5,000 7,509 CelulosaAraucoy ConstitucionS.A .PT 1987 15,000 - 15,000 - 15,000 CompaniaChilena de InversionesS.A. Agente de Valores.CM 1982 200 - - 120 120 Companiade Carbonesde ChileCOCAR S.A EM 1986 18,700 - 16,500 2,200 18,700 EmpresaMinera de MantosBlancos, S.A. EM 1958,1959,1966,1984 23,658 15,693 15,906 4,251 20,157 49,915 11,571 61,486 China GuangzhouPeugeot Automobile Company Ltd .AV 1986 18,002 - 15,000 3,002 18,002 Colombia Carbonesdel Caribe,SA .EM 1984,1987 14,782 - 13,625 - 13,625 CementosRioclaro S.A ...... CC 1984 16,000 11,473 11,000 5,000 16,000 CompaniaColombiana de ClinkerS.A. CC 1977,1980 2,732 - - 2,245 2,245 CorporacionEinanciera Colombiana. DF 1962,1985 8,024 - - 958 958 CorporacionFinanciera del Norte.. . DF 1969,1973 454 - - 449 449 CorporacionFinanciera Nacional D. F 1962,1963,1985 8,042 - - 210 210 Enkade Colombia,S.A TE 1967,1970,1974,1985,1987 14,216 6,703 6,442 - 6,442 FrigorificosColombianos SA . FA 1983 1,540 - 1,000 540 1,540 LeasingBolivar, S.A .CM 1981,1985,1987 7,195 7,000 5,364 195 5,559 PetroleosColombianos Limited CP 1981,1982 6,750 9,259 1,790 3,858 5,648 Pro-Hoteles,S.A .TS 1970,1977 973 71 - 136 136 ProductosDerivados de la Sal, S.A.-Prodesal.CP 1987 7,180 - 6,000 1,180 7,180 Promotorade ia Interconexionde los Gasoductosde la Costa AtianticaS.A .TS 1977 8,000 7,000 - 2,000 2,000 SanFernando/Chucuri Oil ExplorationProgram .CP 1986 5,000 - - 5,000 5,000 45,221 21,771 66,992 Congo, People's Republic of the Congolaisedes BoisImpregnes S.A. PT 1987 2,131 - 1,834 268 2,102 CongolaiseIndustrielle des Bois(C.I.B.), S.A .PT 1985,1986,1987 2,134 - 2,948 - 2,948 4,782 268 5,050 Costa Rica Matasde CostaRica, S .A .0 1983 1,524 - 1,943 - 1,943 ScottPaper Company de Costa Rica,S.A .PT 1978,1987 4,000 - 1,500 - 1,500 3,443 - 3,443 Cote d'lvoire Ets R. Gontreville,S.A.. TE 1977,1987 9,880 - 9,172 885 10,057 Moulindu Sud-Ouest. FA 1980 3,307 - 2,900 - 2,900 OmniumChimique et Cosmetique"Cosmivoire" FA 1987 2,129 - 2,096 - 2,096 SocieteIvoirienne d'Engrais (Siveng) .CP 1980 6,392 - 3,837 1,272 5,109 18,005 2,157 20,162 Cyprus DomeInvestments Limited .TS 1983 2,058 - 1,390 274 1,664 TheCyprus Investment and Securities CorporationLimited .CM 1983 195 - - 195 195 1,390 469 1,859
65 International Finance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld for the Original Corporation(including Type Fiscalyears in Commitments, undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity Totalloans ANDOBLIGOR business weremade IFC SyndicationsLoans (atcost) andequity DominicanRepublic CementosNacionales, S.A .CC 1974,1981 $ 7,740 $ - $ - $ 1,740 $ 1,740
CompaniaDominicana de Leasing,S.A .CM 1984 3,150 e - 150 150 ProductoraNacional de Algodon,C. porA .FA 1983,1984 2,573 2,400 1,600 973 2,573 TransamericanHoteles, Dechiaro, Siskind Vincent & Co., S. en C. por A . TS ... TS 1987 6,000 - 6,000 - 6,000 7,600 2,863 10,463 Ecuador 1969,1973,1975,1977, Ecuatorianade Desarrollo,S.A. (Compania Financiera) . DF 1981,1982 520 - - 306 306 La CementoNacional, C.E.M .CC 1978,1980,1982,1983,1984 13,056 - 1,073 1,056 2,129 MineraKolla S.A...... EM 1987 13,400 - 9,000 4,400 13,400 SociedadAgricola e IndustrialSan Carlos, S.A. FA 1976 5,000 - 294 - 294 10,367 5,762 16,129 Egypt,Arab Republic of AlexandriaNational Steel Company, S.A.E .IS 1984 38,400 64,000 31,200 7,200 38,400 AluminumSulphate Company of EgyptS.A.E .CP 1986 565 - - 565 565 Arab CeramicCompany S.A .MF 1976,1982 6,243 1,500 2,410 1,114 3,524 CrocodileTourist Project Company SAE .. ... TS 1982 5,131 - 1,882 721 2,603 DeltaSugar Company S.A.E .FA 1978,1983 15,506 8,000 11,132 3,506 14,638 EgyptInvestment Finance Corporation, S.A.E. CM 1985 1,709 - 1,500 209 1,709 IsmailiaFish Farming Company S.A.E .FA 1980,1981,1983 5,009 - 1,930 554 2,484 IsmailiaMisr PoultryCompany, S.A.E .FA 1979,1983 14,353 - - 2,285 2,285 MeleihaOil Developmentand ExplorationProject .C ... CP 1987 19,500 - - 19,500 19,500 SuezCement Company . CC ... CC 1980 30,000 - 30,000 - 30,000 80,054 35,654 115,708 El Salvador Hotelesde CentroAmerica, Sociedad Anonima .T S... TS 1969 934 - - 233 233 Fiji Capos Limited. TS ... TS 1986 8,818 - 9,321 - 9,321 Fiji ForestIndustries P ... PT 1987 3,721 - 1,989 1,732 3,721 MerchantBank of Fiji Limited CM ... CM 1987 2,347 - - 347 347 11,310 2,079 13,389 Gambia,The KomboBeach Hotel Limited . TS ... TS 1984 2,823 - 4,202 - 4,202 Ghana AshantiGoldfields Corporation (Ghana) .E ... EM 1985 22,500 27,500 27,500 - 27,500 Keta Basin Oil. C ... CP 1987 4,500 - - 4,500 4,500 27,500 4,500 32,000 Greece Aluminiumde Grece,Societe Anonyme Industrielle et Commerciale. N ... NF 1970,1972 5,372 3,281 - 577 577 AsbestosMines of NorthernGreece, Mining S.A .EM 1980 5,719 - - 2,792 2,792 NationalInvestment Bank for IndustrialDevelopment, S.A ...... D O-DF 1966,1977 - 35,000 54 - 54 54 3,369 3,423 Grenada Issa Nicholas(Grenada) Limited T S ... TS 1986 6,000 - 4,500 - 4,500 Guinea BanqueInternationale pour le Commerceet l'Industriede la Guinee (BICI-GUI). CM ... CM 1987 1,000 - - 1,000 1,000 SocieteInternationale des Granits,Marbres et Roches Assimilees,S.A ...... E...... M...... 1987 107 - 105 - 105 SocieteMixte Aredor-Guinee S.A .EM 1983 14,835 - 14,091 1,228 15,319 14,196 2,228 16,424 Guyana IndustrialDomestic and ElectricalAppliances Limited ... MF 1979 2,000 - 1,367 - 1,367 Haiti Promoteurset InvestisseursAssocies, S.A .FA 1982 1,500 - 1,288 150 1,438 Honduras GranjasMarinas san Bernardo,S.A. de C.V F A. ... FA 1987 575 - - 575 575 TextilesRio Lindo,S.A. de C.V ...... TE . TE 1978 4,000 6,000 2,400 1,000 3,400 2,400 1,575 3,975
66 IntermationalFinance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld for the Original Corporation(including Type Fiscalyears in Commitments' undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity Totalloans ANDOBLIGOR business weremade IFC Syndications Loans (at cost) and equity Hungary Hungarian-JapaneseFermentation Industry Limited ... CP 1987 $11,250 $ - $ 8,550 $ 2,700 $ 11,250 UNICBANKRT .CM 1987 3,204 - - 3,204 3,204 8,550 5,904 14,454 India BajajTempo Limited . . AV 1985 15,077 15,459 5,263 - 5,263 BiharSponge Iron Limited . .IS 1985 15,872 - 15,137 734 15,871 DeepakFertilisers and PetrochemicalsCorporation Limited .. CP 1980,1982, 1987 8,706 - 6,562 1,206 7,768 Escorts Limited . .AV 1976,1987 15,554 - 8,954 - 8,954 Export-ImportBank of India . .CM 1987 15,000 - 15,000 - 15,000 Grasim IndustriesLimited . .CC 1987 10,842 5,117 13,788 - 13,788 GujaratFusion Glass Limited . .MF 1987 7,525 - 7,525 - 7,525 GujaratNarmada Valley Fertilizers Company Limited CP 1987 35,630 - 35,630 - 35,630 HeroHonda Motors Limited . .AV 1987 7,744 - 7,775 - 7,775 HindustanMotors Limited . . AV 1987 37,638 - 37,638 - 37,638 HousingDevelopment Finance Corporation Limited CM 1978,1987 5,608 - 1,400 1,001 2,401 IndiaEquipment Leasing Limited . .CM 1986 2,854 - 2,500 354 2,854 IndiaLease Development Limited . .CM 1985 5,348 - 2,500 348 2,848 IndianExplosives, Ltd . .CP 1967 10,534 928 - 591 591 MahindratJgine Steel Company, Ltd . .IS 1964,1975, 1979 13,000 142 594 1,176 1,770 ModiCement Limited . .CC 1985 13,042 - 20,220 - 20,220 NagarjunaSteels Limited; Nagarjuna Signode Limited: NagarjunaCoated Tubes Umited . .IS 1981,1987 8,088 - 5,066 786 5,852 The GreatEastern Shipping Company Limited .. 0 1986 10,048 - 8,000 2,048 10,048 The GujaratRural Housing Finance Corporation Limited . . CM 1987 193 - - 193 193 The Indian RayonCorporation Limited . .CC 1982,1987 14,597 - 10,588 - 10,588 The TataIron andSteel Company Limited . . IS 1981,1986 31,404 20,000 23,115 - 23,115 Titan WatchesLimited . . MF 1987 15,637 - 15,221 391 15,612 242,476 8,828 251,304 Indonesia PT DaralonTextile Manufacturing Corporation .TE 1972,1977,1979 5,548 1,733 399 - 399 PT JakartaInternational Hotel .TS 1973 4,434 7,000 - 1,600 1,600 PT PapanSejahtera .CM 1980 5,202 - - 1,202 1,202 PT.Private Development Finance Company of Indonesia. . DF 1974 483 - - 362 362 PT SasekaGelora Leasing .CM 1982,1985 3,371 2,000 - 371 371 PT SemenAndalas Indonesia .CC 1980 25,000 28,000 20,000 - 20,000 PT SemenCibinong .CC 1971,1973,1974,1976, 1984 26,546 25,270 2,930 2,200 5,130 PT Unitex..... ,...... TE 1971 2,050 1,250 - 800 800 23,329 6,535 29,864 Jamaica EasternBanana Estates Limited .FA 1987 4,661 - 3,750 910 4,660 JamaicaFlour Mills Limited.FA 1982 5,000 - 2,917 - 2,917 PegasusHotels of Jamaica,Ltd .TS 1969 1,987 926 - 669 669 The FalconFund (1985) Limited. GF 1986 2,557 - 2,559 - 2,559 WestIndies Glass Company Limited .MF 1981 2,250 - 899 - 899 10,125 1,579 11,704 Jordan Al-HikmaPharmaceuticals Company. MF 1987 2,193 - 2,193 - 2,193 JordanCeramic Industries Company Ltd. MF 1974 1,576 250 - 226 226 JordanLeasing Company, Ltd .CM 1982 290 - - 290 290 JordanLime and SilicateBrick IndustriesCompany Limited.. , ...... CC 1979,1985 3,848 - 1,539 1,349 2,888 JordanPhosphate Mines Company Limited .CP 1987 38,229 50,000 17,012 - 17,012 20,744 1,865 22,609 Kenya BamburiPortland Cement Company Limited .CC 1982 4,430 - 3,757 - 3,757 DevelopmentFinance Company of KenyaLimited DF 1980,1984 6,381 - 6,089 1,314 7,403 DiamondTrust of KenyaLimited .CM 1982 804 - - 804 804 EquatorialBeach Properties Limited .TS 1986 3,671 - 6,099 - 6,099 IndustrialPromotion Services (Kenya) Limited .CM 1982,1987 2,046 - - 2,046 2,046 KenyaCommercial Finance Company Limited .CM 1981 5,000 - 3,912 - 3,912 LeatherIndustries of KenyaLimited. MF 1984 2,713 - 1,657 595 2,252 Oil CropDevelopment Limited ...... FA 1986 11,046 - - 743 743 PanafricanPaper Mills (E.A.),Ltd. PT 1970,1974, 1977, 1979, 1981 24,549 3,965 4,000 4,510 8,510 Rift ValleyTextiles Limited .TE 1976 8,069 1,000 4,273 2,769 7,042 TetraPak ConvertersLimited .PT 1983 2,540 - 1,241 370 1,611 TourismPromotion Services (Kenya) Ltd .TS 1972 1,629 791 180 45 225 31,208 13,196 44,404
67 International Finance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld tor the Original Corporation(including Type Fiscalyears in Commitments' undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity Totalbans ANDOBLIGOR business weremade IFC SyndicationsLoans (atcost) andequity Korea,Republic of ChonjuPaper Manufacturing Co,, Ltd... PT 1976,1984,1987 $ 5,963 $ - $ - $ 563 $ 563 GoldStar Company,Ltd MF...... 1975,1976,1977,1979, 26,256 13,000 - 6,569 6,569 1980,1984,1985,1987 Hae Un DaeDevelopment Company, Ltd. TS 1975 3,450 - 434 700 1,134 KoreaBusiness Research and Information,Inc CM 1987 148 - - 148 148 KoreaDevelopment Investment Corporation C M. ... CM 1983,1985 5,952 . - 5,952 5,952 KoreaDevelopment Leasing Corporation ...... i CM 1977,1979, 1987 5,862 10,000 - 489 489 KoreaInvestment and FinanceCorporation C M ... CM 1971,1974,1976,1979, 3,765 - - 2,176 2,176 1980,1982,1985 KoreaLong TermCredit Bank DF. .. DF 1968,1974,1976,1977, 13,565 8,938 - 3,093 3,093 1978,1980 KoreaSecurities Finance Corporation C M. CM 1975,1977,1980,1982,1984 8,392 - - 2,014 2,014 KoreaZinc Company,Ltd .. NF ...... 1976,1986 25,017 - 6,000 4,017 10,017 TaihanBulk TerminalCo., Ltd ...... 0 1981 6,000 3,500 2,270 2,500 4,770 TongYang Nylon Company, Limited T .. E TE 1975 9,000 - - 2,070 2,070 8,704 30,291 38,995 Liberia LiberianBank for Developmentand Investment. DF 1966,1977,1984 702 1 - 70 70 Madagascar La CotonnieredAntsirabe (COTONA), S.A. TE 1986 9,487 - 10,984 184 11,168 Les Pecheriesde Nossi Be, S.A FA 1984 2,669 - 1,383 99 1,482 SocieteTextile de MajungaSA TE 1977,1987 15,002 - 6,439 313 6,752 18,806 596 19,402 Malawi DavidWhitehead and Sons (Malawi) Ltd. T E ... TE 1976,1982 10,784 - 5,021 - 5,021 DwangwaSugar Corporation Limited F A ... FA 1977,1981,1985 11,306 - 8,812 - 8,812 EthanolCompany Limited . CP ... CP 1981,1982 2,458 - 1,082 245 1,327 Investmentand DevelopmentBank of MalawiLimited D DF 1979 605 - - 605 605 MalawiHotels Limited . T i ...... -- .TS 1980,1984 2,085 - 396 - 396 TheLeasing and FinanceCompany of MalawiLimited ... CM 1986 823 - 748 76 824 ViphyaPlywoods and Allied IndustriesLimited P T ... PT 1987 4,052 - 3,552 500 4,052 19,611 1,426 21,037 Malaysia PacificHardwoods Sdn. Berhad P T - PT 1985 11,500 - 9,258 1,530 10,788 SEAVIProject . C ...... CM 1985 1,000 - - 1,000 1,000 9,258 2,530 11,788 Mali SocieteIndustrielle de Karitedu Mali, S.A. F A. ... FA 1982,1983 2,297 - 1,886 - 1,886 SocieteMamadou Sada Diallo et FreresSARL (SOMACI) MF 1978 600 - 334 - 334 2,220 - 2,220 Mauritius SocotaTextile Mills Limited ...... 4 ...... TE 1987 6,007 - 5,000 1,007 6,007 Mexico Agro IndustrialExportadora, S.A. de C.V F A. ... FA 1987 2,000 - 1,500 500 2,000 CancunAristos Hotel TS ... TS 1974,1981 1,304 - - 328 328 Celulosay Papelde Durango,SA. de G.V PPt...... 1986 11,900 - 10,000 1,900 11,900 CelulosicosCentauro, S.A PT 1981 20,790 44,000 15,790 - 15,790 CementosVeracruz, S.A ...... C CC..... 1973,1979 11,352 4,500 3,141 - 3,141 ConductoresMonterrey, S.A MF 1979 5,000 13,000 4,677 - 4,677 CorporacionAgroindustrial, S.A. de C.V F A ... FA 1981 9,300 5,000 1,988 3,000 4,988 EmpresasTolteca de Mexico,S.A CC 1979,1984 37,950 138,000 19,120 7,950 27,070 HotelCamino Real Ixtapa, S.A TS 1979,1981,1987 4,201 - - 4,201 4,201 IndustriasResistol, S.A PT 1980 8,000 17,000 2,500 - 2,500 IndustriasSulfamex,S.A. de C.VV...... CP 1987 2,500 - 2,000 500 2,500 Metalsa,S.A...... AV...... 1984 4,400 - 3,000 1,400 4,400 Mexinox,S.A ...... IS 1975,1978 15,180 - 2,766 3,180 5,946 MineraReal de Angeles,S.A. de C.V EM...... 1980 30,000 80,000 10,000 - 10,000 PapelesPonderosa, S.A...... , ... PT 1978,1981, 1984 11,157 4,500 1,938 4,957 6,895 PromocionesIndustriates Mexicanas, S.A. de C.V C CP... 1985 12,000 4,400 6,000 - 6,000 Proteison,S.A. de C.V ...... - ...... FA 1985 2,770 - 1,950 820 2,770 TereftalatosMexicanos, S.A ...... CP 1978 19,000 - 7,128 - 7,128 VidrioPlano de Mexico,S.A. and Vitro Flotado, S.A MF 1980 15,000 99,900 8,750 - 8,750 102,248 28,736 130,984
68 International Finance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld for the Originial Corporation(including Type Fiscalyears in Commitments1 undisbursedbalances) COUNTRYREGION OR OTHER AREA Of whichcommitments Total Total Equity Totalloans AND OBLIGOR business weremade IFC Syndications Loans (at cost) and equity Morocco Asmentde TemaraS.A CC 1977,1980 $ 8,328 $ - $ 2,005 $ - $ 2,005 BanqueNationale pour le DeveloppementEconomique ... DF 1963,1978,1984,1986 46,690 40,240 58,151 1,544 59,695 CimenterieNouvelle deCasablanca-Cinouca, S.A CC 1982,1983 17,844 - 11,867 2,044 13,911 CreditImmobilier et Hotelier . .TS 1987 25,385 26,480 25,187 - 25,187 FruitiereMarocaine de Transformation"FRUMAT" FA 1986 7,583 - 8,306 - 8,306 Societedes Cimentsde Marrakech,S.A. .. CC 1976 1,216 - - 1,112 1,112 SocieteMiniere du Bou-Gaffer"SOMIFER . . EM 1980 15,355 - 4,337 2,348 6,685 109,853 7,048 116,901 Mozambique CompanhiaAgroindustrial Lonrho-Mocambique Limitada .FA 1987 2,500 - 2,500 - 2,500 Nepal Nepal OrindMagnesite (Private) Limited .EM 1982 4,966 - 7,924 - 7,924 SoalteeHotel Limited .TS 1975 3,128 - - 428 428 7,924 428 8,352 Niger Les Moulinsdu Sahel,S .A FA 1982 2,267 - 2,186 - 2,186 Nigeria ArewaTextiles., Ltd ...... TE...... 1964,1967,1970 847 728 - 442 442 FuntuaCottonseed Crushing Company Limited FA. ... FA 1973 1,064 516 304 - 304 IkejaHotel Limited. ... TS 1981,1985 11,851 - 9,400 1,211 10,611 NigeriaEngineering Works Limited . A V ... AV 1987 10,930 - 10,930 - 10,930 NigerianAluminium Extrusions Limited . ... NF 1973,1974 1,328 - 216 326 542 NigerianTextile Mills Limited. ... TE 1980,1987 20,047 - 17,022 735 17,757 TigerBattery Company (Nigeria) Limited . M F... MF 1985 2,850 2,465 4,803 - 4,803 42,675 2,714 45,389 Oman OmanDevelopment Bank S.A.0 ODF 1979 2,029 - - 1,014 1,014 Pakistan Anglo-Suisse(Pakistan), Inc CP 1987 4,300 - - 4,300 4,300 AsbestosCement Industries Limited ...... CC 1982 4,020 - 1,356 - 1,356 DawoodHercules Chemicals, Ltd ...... 1969 3,923 - - 2,923 2,923 GharibwalCement, Ltd . C ...... - ...- CC 1962,1965 5,379 289 - 417 417 Habib Arkady Limited ...... F . - FA 1981 3,315 - 3,150 165 3,315 Mari Gas CompanyLimited CP. ... CP 1986 24,982 21,543 7,812 - 7,812 Milkpak Limited...... FA 1979,1987 2,306 500 543 153 696 NationalDevelopment Leasing Corporation Limited C. .--.CM 1985 5,861 - - 367 367 PackagesLimited ...... PT 1965,1980,1982 10,736 9,362 - 605 605 PakistanIndustrial Credit and InvestmentCorporation, Ltd...... I...... -..... OF 1963,1969, 1975 3,520 - - 3,483 3,483 PakistanOilfields Limited and AttockRefinery Limited .... CP 1979,1982,1984 16,540 14,500 4,500 2,040 6,540 PakistanPaper Corporation, Ltd . .PT 1967,1976 6,855 546 4,511 - 4,511 PakistanPetroleum Limited CP ... CP 1983,1985 26,304 79,200 26,263 1,560 27,823 48,135 16,013 64,148 Panama BancoLatinoamericano de Exportaciones,S.A. CM 1979,1985,1986 40,500 4,327 17,250 2,500 19,750 Vidrios Panamenos, S.A.. MF 1978 3,800 - - 1,400 1,400 17,250 3,900 21,150 Paraguay EmpresaHotelera de Encarnacion,S.A. T S. ... TS 1981,1986 1,450 - 270 280 550 SociedadAgricola Golondrina, S.A. FA 1982 7,000 - 4,545 2,000 6,545 WesternAgri Producciondel ParaguayS.R.L. FA 1986 800 - 800 - 800 5,615 2,280 7,895 Peru CompaniaAurifera Rio Inambari,S.A E M ...... EM 1986 6,500 - 6,000 500 6,500 Companiade CementoPacasmayo, S.A . .CC 1964,1967 297 1,309 - 91 91 Companiade MinasBuenaventura, S.A . .EM 1979,1983 7,460 - 2,004 1,460 3,464 Companiade MinasOrcopampa, S.A. M..... EM 1986 9,000 - 9,000 - 9,000 CompaniaMinera San Ignaciode Morococha,S.A .. EM 1980,1985 7,200 - 227 500 727 ConsorcioEnergetico de Huancavelica,S.A . . TS 1982 4,500 - 3,462 - 3,462 S.A. MineraRegina EM ... EM 1985 5,240 - 1,500 240 1,740 SogewieseLeasing, S.A . .CM 1982 3,137 - 600 137 737 22,793 2,928 25,721
69 International Finance Corporation Investment Portfolio (conhnued) June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld for the Original Corporation(including Type Fiscalyears in Commitments1 undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity Totalloans ANDOBLIGOR business weremade IFC SyndicationsLoans (atcost) andequity
Philippines AcojeMining Company, Inc. EM 1977 $ 3,721 $ - $ 1,342 $ - $ 1,342 All Asia Capitaland LeasingCorporation (AACL) ...... CM 1980,1983,1985 5,307 6,000 2,910 213 3,123 CebuShipyard and EngineeringWorks, Inc ...... 0 1978 2,100 - 1,181 - 1,181 DavaoUnion Cement Corporation . C ... CC 1981 16,000 - 8,500 - 8,500 GeneralMilling Corporation ...... ,.... FA 1979 5,082 - 1,500 1,082 2,582 MariaCristina Chemical Industries, Inc. .__ ...... IS 1974,1979 2,190 - - 436 436 NDC-GuthriePlantations, Inc .FA 1982 11,000 - 11,000 - 11,000 PhilagroEdible Oils, Inc...... FA 1976,1980 2,839 - 166 - 166 PhilippineAssociated Smelting and RefiningCorporation . EM 1981 5,000 - - 5,000 5,000 PhilippineLong DistanceTelephone Company .r s... TS 1987 34,530 - 30,000 - 30,000 Pure FoodsCorporation . FA ... FA 1986 1,391 - - 1,391 1,391 Venturesin Industryand BusinessEnterprises, Inc . CM 1980 246 - - 246 246 56,599 8,368 64,967 Portugal BancoPortugues de Investimento.O ... DF 1982,1985,1987 21,230 2,000 10,904 820 11,724 SOFINLOC-SociedadeFinanceira de Locacao, S.A.R.L...... CM 1983,1985 3,744 9,000 3,000 421 3,421 13,904 1,241 15,145 Rwanda SocieteRwandaise pour la Productionet la Commercialisationdu The (SORWATHE) F A _ FA 1976,1979,1985 1,111 - 532 - 532 Senegal African Seafood,S.A ...... F...... 1986 3,944 - 3,210 734 3,944 Banquede ('Habitatdu Senegal,S.A .CM 1980 465 - - 465 465 IndustriesChimiques du Senegal,S.A .CP 1982 25,000 - 10,000 - 10,000 Societede Teinture,Blanchiment, Apprets et d'Impression Africaine...... TE 1987 2,948 - 2,948 - 2,948 SocieteFinanciere Senegalaise pour le Developpementde l'Industrieet du Tourisme.OF... DF 1974,1985 339 - - 339 339 SocieteHoteliere du Barachois,S.A. TS 1980 3,000 - 2,581 - 2,581 18,739 1,538 20,277 Seychelles Ailee DevelopmentCorporation, Ltd. TS 1987 9,868 - 9,868 - 9,868 Sierra Leone SierraCement Manufacturing Company Limited- "SERACEM" ...... CC 1980 2,050 - 2,050 - 2,050 Somalia SomaliBag CompanyLimited . M ... MF 1985 976 - 1,020 - 1,020 SomaliMolasses Company Limited .F A ... FA 1981 375 - 114 - 114 1,134 - 1,134 Spain SociedadEspanola de Financiacionde la Innovacion, S.A ...... C _ CM 1978 877 - 877 877 Sri Lanka Bank of Ceylon...... CM 1978,1981 7,000 - 4,121 - 4,121 CeylonSynthetic Textile Mills Limited. T ... TE 1979,1981 2,412 1,272 1,875 - 1,875 DevelopmentFinance Corporation of Ceylon.OF... DF 1978,1980,1983 457 - - 457 457 LankaOrient Leasing Company Limited . ... CM 1980,1984,1985 3,339 - - 339 339 MikechrisIndustries Limited .. ... MF 1979 985 - 623 - 623 TajLanka Hotels Limited ,.TS ....TS 1981 8,900 11,100 8,200 700 8,900 14,819 1,496 16,315 Sudan CottonTextile Mills, Ltd...... TE 1976 9,979 - 8,714 1,265 9,979 GeziraManagil Textile Company Limited T E. ... TE 1978 8,083 - 6,688 1,396 8,084 15,402 2,661 18,063 Swaziland SwazilandIndustrial Development Company Limited .D OF 1987 2,992 - 2,300 692 2,992 The NationalTextile Corporation of SwazilandLimited .... TE 1985 2,552 - 2,230 553 2,783 The RoyalSwaziland Sugar Corporation Limited .F ... FA 1978,1986 10,429 - 4,925 461 5,386 9,455 1,706 11,161 Tanzania Amboni Limited...... __ ...... MF 1985 2.868 711 4,372 - 4,372 HighlandSoap and Allied ProductsLimited M ...... MF 1978 1,741 - 1,375 366 1,741 Metal ProductsLimited M ... MF 1979 1,510 - 706 184 890 6,453 550 7,003
70 International Finance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) Investmentsheld for the Original Corporation(including Type Fiscalyears in Commitments' undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity lbtalloans ANDOBLIGOR business weremade IFC Syndications Loans (atcost) andequity Thailand BangkokGlass IndustryCo., Ltd...... ME 1979,1980, 1983 $10,298 $ - $ 944 $ 448 $ 1,392 NationalPetrochemical Corporation Limited .C P.. CP 1984,1986 512 - - 512 512 NortheastAgriculture Company Limited ...... FA 1987 2,081 - 1,610 471 2,081 PhyaThai II HospitalCo. Ltd...... 0 1986 4,975 - 4,200 775 4,975 Sea MineralsLimited . EM ... EM 1983 556 - - 482 482 SEAVIProject ...... CM 1985 1,000 - - 1,000 1,000 SiamCity CementCo., Ltd.CC 1979,1981,1985,1987 56,169 68,000 33,353 5,645 38,998 ThailandTantalum Industry Corporation Limited .EM... EM 1984 21,197 35,000 8,126 3,417 11,543 The MutualFund Company Limited .C ... CM 1977 294 - - 294 294 The SiamCement Co., Ltd ...... C CC 1969,1976,1978,1980,1985 17,878 14,874 - 1,422 1,422 WorldAquaculture Company, Ltd ...... 1984 3,711 - 1,842 561 2,403 Loansto smalland medium-scaleindustries in Thailandin cooperationwith Siam Commercial Bank, Limited ... . CM 1978 2,005 - 35 - 35 50,110 15,027 65,137 Togo PanAtlantic Company, S.A TE 1987 8,081 - 7,000 1,081 8,081 Trinidad & Tobago HomeMortgage Bank ...... CM 1987 444 - - 444 444 TrinidadNitrogen Co., Limited CP. ... CP 1987 40,000 150,000 40,000 - 40,000 40,000 444 40,444 Tunisia Adwya, S.A...... 1987 2,552 - 2,266 286 2,552 Banquede DeveloppementEconomique de Tunisie DF .....DF 1966,1970,1978 2,305 - - 2,305 2,305 BanqueNationale de DeveloppementTouristique ...... TS 1969 9,081 1,167 - 2,248 2,248 CometeEngineering ...... 0 1987 40 - - 40 40 IndustriesChimiques du Fluor,S.A . .CP 1974 640 - - 640 640 RozziEdilizzia Industrializzata de Tunisie-"REIT" M ..... ME 1987 1,687 - 1,246 432 1,678 Societed'Etudes et de Developpementde Sousse-Nord TS 1973,1975 3,161 - 380 631 1,011 SocieteIndustrielle des Textiles(SITEX) . .TE 1986 8,211 - 5,000 2,152 7,152 SocieteMiniere de Spath-fluoret Barytine(Fluobar), S.A. EM 1985 245 - - 245 245 SocieteTunisienne de Leasing"Tunisie Leasing," S.A. .CM 1985,1986 3,930 - 2,802 480 3,282 11,694 9,459 21,153 Turkey AnadoluCam Sanayii,A.S ...... M...... EMF 1970,1986, 1987 19,180 3,294 11,476 1,682 13,158 Asil CelikSanayi ve Ticaret A.S ...... I.....Is 1976,1979 16,000 - 1,715 - 1,715 Cam ElyafSanayii A.S ...... ME 1986 7,942 - 9,891 - 9,891 EgeMosan Motorlu Araclar Sanayi ve TicaretA.S .AV 1979 2,150 - 165 - 165 Eska Turizmve TicaretA.S ...... TS 1986 2,375 - 2,623 - 2,623 GuneySanayi ve TicaretIsletmeleri A.S .TE 1987 16,491 - 17,295 - 17,295 IstanbulSegman Sanayi ve TicaretA.S .AV 1979,1980,1982,1984, 1985 11,186 - 2,533 2,337 4,870 KirklareliCam SanayiiA.S .M...... M EMF 1981 11,000 1,955 6,417 - 6,417 Man Kamyonve OtobusSanayi A.S. AV 1985 6,466 - 10,930 - 10,930 M.A.N.Motor Sanayi ve TicaretA.S .AV 1982 7,886 - 9,252 - 9,252 MensucatSanayi ve Ticaret,A.S. E. .. TE 1980 4,000 - 1,143 - 1,143 Nasas-AluminyumSanayii ve TicaretiA.S...... NENF 1971,1976,1983,1984 10,036 - - 1,461 1,461 PinarEntegre et ve YemSanayii A.S. FA 1984 3,900 - 3,900 - 3,900 SilkarTurizm Yatirim ve IsletmeleriA.S. T S _ TS 1986 5,806 - 6,831 - 6,831 TrakyaCam SanayiiA.S ...... M....EMF 1979,1981,1983,1984 24,977 11,395 3,625 3,226 6,851 1964,1967,1969,1972, 1973,1975,1976,1977, TurkiyeSinai KalkinmaBankasi, A.S ...... DF 1980,1983 19,742 45,028 - 2,698 2,698 VikingKagit ve Seluloz,A.S .PT 1970,1971,1982,1983 3,323 - - 823 823 87,796 12,227 100,023 Uganda DevelopmentFinance Company of UgandaLimited _ DFO 1985 375 - - 375 375 SugarCorporation of UgandaLimited .F A .. FA 1984 8,000 - 7,996 - 7,996 TheToro and MityanaTea Company Limited _ .F...A _ FA 1984 1,123 500 406 - 406 UgandaTea Corporation Limited . F A ... FA 1985 2,743 - 2,898 - 2,898 11,300 375 11,675 Uruguay Astra PesqueriasUruguayas S.A. FA 1979,1983 8,675 - 6,194 2,250 8,444 Azucitrus S.A ...... FA 1985 10,055 - 8,082 2,400 10,482 Sur InvestCasa BancariaS.A CM 1980 10,586 - 1,500 1,786 3,286 15,776 6,436 22,212
71 International Finance Corporation Investment Portfolio (continued) June 30, 1987 Expressed in United States Dollars (in thousands) investmentsheld br the Original Corporation(including Type Fiscalyears in Commitrrents' undisbursedbalances) COUNTRYREGION OR OTHER AREA of whichcommitments Total Total Equity Totalloans ANDOBLIGOR business weremade IFC SyndicationsLoans (atcost) andequity Yemen Arab Republic Marib AgricultureCompany, YS.C .FA 1987 $ 2,703 - $ 2,400 $ 303 $ 2,703 NationalCompany for Vegetable Oil and GheeIndustries Limited. F ...... FA 1985 4,652 - 6,579 - 6,579 YemenBattery Manufacturing Company, YS.C ...... MF 1984,1985 3,797 349 3,250 547 3,797 YemenHunt Oil Company . CP ... CP 1986 9,000 - 7,875 - 7,875 20,104 850 20,954 Yugoslavia Belisce-BelTvornica Papira, Poluceluloze i Kartonaze-/ Belisce...... i...... PT 1973,1981 30,976 39,889 14,668 - 14,668 FrikomRo IndustrijaSmrznute Hrane .F ... FA 1977 5,427 1,000 - 2,427 2,427 Ina-Naftaplin...... CP 1985 28,873 8,909 27,725 - 27,725 IndustrijaZa AvtomobilskiDelovi I Traktori-"Ruen" Kocani... ii ...... AV 1982 10,631 - 12,255 - 12,255 InstitutZa FizikalnuMedicinu I Rehabilitaciju-Dr.Simo Milosevic-Igalo...... 0 O 1982 14,072 - 18,252 - 18,252 InternationalInvestment Corporation for Yugoslavia ...... ODF 1970 1,813 188 - 1,625 1,625 InvesticionaBanka Titograd-Udruzena Banka .T . TS 1980 21,000 - 11,000 - 11,000 Iskra. . TS 1985 13,514 10,600 19,776 - 19,776 Jugobanka-UdruzenaBanka Beograd. M F.. MF 1986 25,337 10,360 33,621 - 33,621 LjubljanskaBanka-Zdruzena Banka .O ... DF 1983 71,155 29,828 95,590 - 95,590 RadnaOrganizacija Hermeticki Kompresori u Osnivanju, Mostar ...... MF MF 1978 7,000 - 876 - 876 RadojeDakic ...... MF 1980 18,700 - 11,688 - 11,688 Sour Energoinvest...... 0 1985 15,100 - 18,075 - 18,075 TovarnaAvtomobilov in MotorjevMaribor N. Sol. 0. .... AV 1987 36,320 869 27,597 - 27,597 TovarnaAvtopnevmatike "Sava-Semperit" ...... AV 1972,1978,1980 13,692 1,341 913 - 913 TvornicaKartona I AmbalazeCazin ...... PT 1977 10,821 7,366 590 2,569 3,159 UNIAL-TovarnaGlinice in AluminijaBoris Kidric ...... NE 1986 35,603 - 36,684 - 36,684 VojvodjanskaBanka-Udruzena Banka D F ... ODF 1987 28,144 22,318 28,144 - 28,144 Loanto EightBanks for Small-ScaleEnterprises ...... CM 1980 26,000 4,233 14,492 - 14,492 371,946 6,621 378,567 Zaire GrandsHotels du Zaire,S.Z.A.R.L . .. TS 1985 15,000 - 15,000 - 15,000 SocieteFinanclere de DeveloppementDF .... OF 1970,1985 1,297 - - 1,297 1,297 SocieteTextile de KisanganiS.Z.A.R.L. , ... TE 1985 9,065 - 10,691 575 11,266 25,691 1,872 27,563 Zambia DevelopmentBank of Zambia DFOF... 1976 545 - - 545 545 KafueTextiles of Zambia Limited T ...... E TE 1980,1985 10,746 - 12,137 - 12,137 MpongweDevelopment Company Limited F ; i ...... A FA 1985 2,132 - 2,599 293 2,892 ZambiaBata Shoe Company Limited ...... M E 1972,1973 1,146 1,131 - 228 228 ZambiaConsolidated Copper Mines Limited EM 1980,1982 45,142 8,000 37,627 - 37,627 ZambiaHotel Properties Limited ...... TS 1984 7,500 13,178 7,500 - 7,500 59,863 1,066 60,929 Zimbabwe CrestBreeders International (Private) Limited .F A... FA 1986 5,929 - 5,566 625 6,191 UDC Limited...... CM 1985,1987 2,704 - 2,426 416 2,842 WankieColliery Company Limited .E EM 1981 20,000 18,000 8,250 - 8,250 16,242 1,041 17,283 Emerging Markets Growth Fund, Inc...... CM 1986 8,700 - - 8,700 8,700 Regional Investments Africa SIFIDAInvestment Company, S.A OF 1971,1976,1985 3,773 1,940 546 635 1,181 Asia SEAVIProject .CM 1985 1,050 - - 1,050 1,050 546 1,685 2,231 Regional Investments Africa SIFiDAInvestment Company, S.A. DF 1971,1976,1985 3,773 1,940 546 635 1,181 Asia SEAVIProject ...... CM 1985 1,050 - - 1,050 1,050 546 1,685 2,231 Other2 Asia CementCorporation ...... CC 1970 4,119 100 - 205 205 Total 2,346,998 408,679 2,755,677
72 International Finance Corporation Investment Portfolio (conhtnued) June 30, 1987 Expressed in United States Dollars (in thousands)
Summary JUNE30,1987 JUNE30,1986 Equity TotalLoans Equity TotalLoans Loans (at cost) and Equity Loans (atcost) and Equity INVESTMENTSHELD FOR THE CORPORATION $2,346,998 $408,679 $2,755,677 $2,000,789 $386,411 $2,387,200 Undisbursedbalances 796,835 80,752 877,587 543,593 75,631 619,224 Disbursedbalances $1,550,163 $327,927 $1,878,090 $1,457,196 $310,780 $1,767,976 INVESTMENTSHELD BY THE CORPORATION FOR PARTICIPANTS Total $1,036,999 $ 2,019 $1,039,018 $1,051,810 $ 2,019 $1,053,829 Undisbursedbalances 261,777 - 261,777 243,049 - 243,049 Disbursedbalances $ 775,222 $ 2,019 $ 777,241 $ 808,761 $ 2,019 $ 810,780 TOTALINVESTMENTS HELD FOR THE CORPORATION AND FOR PARTICIPANTS Total $3,383,997 $410,698 $3,794,695 $3,052,599 $388,430 $3,441,029 Undisbursedbalances 1,058,612 80,752 1,139,364 786,642 75,631 862,273 Disbursedbalances $2,325,385 $329,946 $2,655,331 $2,265,957 $312,799 $2,578,756 Note 1 Commitmentsinclude funds to be providedby IFC forits own account,funds to be providedby participantsthrough the purchaseof an interestin IFC's investment,and funds to be providedby otherfinancial institutions in associationwith IFC,where IFC has renderedmaterial assistance in mobilizing thosefunds. Originalcommitments are composedof disbursedand undisbursedbalances. The undisbursedportion is revaluedat currentexchange rates while the disbursedportion represents the cost of the commitmentat thetime of the disbursement.Loan investments held for theCorporation are revaluedat the currentexchange rates. Note2 Representsinvestments made at a timewhen the authorities on Taiwanrepresented China in theinternational Finance Corporation (prior to May15,1980). General:The operational investments are representedby loansand equity,as stated.In addition,in certaininvestments, the Corporationhas theright to acquire sharesandlor participate in the profitsof the enterprise. AV automotive/vehicles GF guaranteefacility NF non-ferrousmetals CC cementand construction materials IS ironand steel CM capitalmarkets MF manufacturing CP chemicalsand petrochemicals PT pulp, paperand timber DF developmentfinancing TE textiles EM energyand mining TS tourismand services FA food and agribusiness 0 other
73 International Finance Corporation Statement of Cumulative Gross Commitments Appendix F June 30, 1987 In Thousands of United States Dollars COUNTRY, CumulativeGross Commitments' COUNTRY, CumulativeGross Commitments' REGIONOR Numberof REGIONOR Numberof OTHERAREA Enterprises IFC Syndications Total OTHERAREA Enterprises IFC Syndications Total Afghanistan...... 1 $ 322 - $ 322 Malaysia...... 7 $ 34,592 12,057 $ 46,649 Argentina...... 21 290,226 127,669 417,895 Mali...... 2 2,897 - 2,897 Australia...... 2 975 - 975 Mauritania...... 1 10,449 9,558 20,007 Bangladesh...... 5 12,536 4,155 16,691 Mauritius ...... 3 8,274 98 8,372 Barbados...... 2 1,550 - 1,550 Mexico ...... 30 276,740 499,942 776,682 Bolivia...... 6 9,447 1,041 10,488 Morocco...... 9 138,363 66,840 205,203 Botswana ...... 1 607 - 607 Mozambique ...... 1 2,500 - 2,500 Brazil ...... 50 590,861 525,052 1,115,913 Nepal ...... 2 8,094 - 8,094 BurkinaFaso ...... 1 542 - 542 Nicaragua...... 3 8,542 929 9,471 Burundi ...... 1 5,878 - 5,878 Niger ...... 1 2,267 - 2,267 Cameroon...... 10 23,291 253 23,544 Nigeria ...... 9 50,447 3,713 54,160 Chile ...... 9 128,987 16,118 145,105 Oman ...... 2,029 - 2,029 China... 1...... 18,002 - 18,002 Pakistan...... 19 125,726 126,062 251,788 Colombia...... 31 127,614 43,835 171,449 Panama...... 3 45,773 4,327 50,100 Congo,People's Paraguay.4 14,650 - 14,650 Republicof the .... 4 7,921 - 7,921 Peru ...... 16 81,744 3,573 85,317 CostaRica ...... 4 7,997 217 8,214 Philippines...... 26 170,012 22,458 192,470 Coted'lvoire ...... 5 22,130 - 22,130 Portugal...... 2 22,974 11,000 33,974 Cyprus ...... 4 5,270 597 5,867 Rwanda...... 1 1,111 - 1,111 DominicanRepublic ... 5 22,463 2,400 24,863 Senegal...... 8 40,000 - 40,000 Ecuador ...... 7 40,743 696 41;439 Seychelles...... 1 9,868 - 9,868 Egypt,Arab Republic SierraLeone .1 2,050 - 2,050 of ...... 11 137,009 73,500 210,509 Somalia ...... 2 1,351 - 1,351 El Salvador...... - 2 1,074 - 1,074 Spain ...... 5 20,433 300 20,733 Ethiopia ...... 3 13,137 2,631 15,768 Sri Lanka ...... 7 25,041 13,672 38,713 Fiji...... 4 20,885 - 20,885 Sudan...... 6 26,535 6,464 32,999 Finland...... 4 1,490 1,658 3,148 Swaziland...... 3 15,973 - 15,973 Gambia,The .. i i. 1 2,823 - 2,823 Tanzania...... 4 8,963 2,525 11,488 Ghana.2....2 .. 2 32,000 27,500 59,500 Thailand...... 18 124,974 127,558 252,532 Greece ...... 7 26,906 40,207 67,113 Togo...... 1 8,081 - 8,081 Grenada...... 1 6,000 - 6,000 Trinidadand Tobago .. 4 42,794 150,000 192,794 Guatemala...... 3 18,200 - 18,200 Tunisia ...... 12 36,362 2,079 38,441 Guinea...... 3 15,942 - 15,942 Turkey...... 25 215,156 74,171 289,327 Guyana...... 1 2,000 - 2,000 Uganda...... 6 15,184 2,176 17,360 Haiti ...... 1 1,500 - 1,500 Uruguay ...... 5 34,066 - 34,066 Honduras...... 4 4,927 6,101 11,028 Venezuela...... -- 8 24,540 7,581 32,121 Hungary...... 2 14,455 - 14,455 YemenArab India. 41 417,187 95,924 513,111 Republic...... 5 22,552 1,099 23,651 Indonesia...... 13 90,494 72,803 163,297 Yugoslavia...... 26 459,871 191,274 651,145 Iran,Islamic Republic Zaire.6 29,795 - 29,795 of ...... 7 34,343 8,193 42,536 Zambia...... 8 72,576 22,309 94,885 Israel...... 1 10,500 - 10,500 Zimbabwe ..... 3 28,634 18,000 46,634 Italy ...... 1 960 - 960 EmergingMarkets Jamaica...... 7 20,752 926 21,678 GrowthFund ...... 1 8,700 - 8,700 Jordan ...... 6 46,810 50,250 97,060 Regional: Kenya ...... 15 90,266 35,371 125,637 Africa ...... 1 3,773 1,940 5,713 Korea,Republic of 17 132,505 44,499 177,004 LatinAmerica ...... 1 10,000 - 10,000 Lebanon... I..... 4 6,505 2,600 9,105 Asia ...... 1 1,050 - 1,050 Lesotho ...... 1 330 - 330 Liberia...... 1. 1 702 1 703 Other2 .... 1 9,174 670 9,844 Madagascar ...... 4 28,408 - 28,408 TOTAL 653 $4,832,266 2,566,572$7,398,838 Malawi ...... 7 32,114 - 32,114 Note(1): Cumulativecommitments are composedof disbursedand undisbursedbalances. The undisbursed portion is revaluedat currentexchange rates whilethe disbursedportion represents the cost of thecommitment at the timeof disbursement. Note(2): Representsinvestments made at a timewhen the authorities on Taiwanrepresented China in the InternationalFinance Corporation (prior to May15, 1980).
74 IFC Management Appendix G
* President ...... Barber B. Conable Executive Vice President ...... William S. Ryrie Vice President, PortfolioOperations' ...... I...... Daniel F. Adams Vice President, InvestmentOperations' ...... Judhvir Parmar Vice President, Finance and Resources Management ...... Hilary P Reddy2 Vice President and General Counsel ...... Jose E. Camacho Vice President, Engineering ...... M...... ka...... Makarand V Dehejia Treasurer ...... Richard H. Frank * Secretary ...... Timothy T Thahane
INVESTMENTDEPARTMENTS' Director, Department of Investments, Africa I ...... Andre G. Hovaguimian Divisional Manager-Benin, Burkina Faso, Cameroon, Congo, Cote dIlvoire, Gabon, Ghana, Mali, Niger,Togo ...... Philippe Lietard Divisional Manager-Gambia, Guinea, Guinea-Bissau, Liberia, Mauritania, Morocco, Senegal, Sierra Leone, Tunisia ...... G. K. van der Mandele Director, Department of Investments,Africa It ...... M. Azam K. Alizai Divisional Manager-Botswana, Ethiopia, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Seychelles, Swaziland, Tanzania, Uganda, Zambia ...... Michael Dixon Divisional Manager-Burundi, Djibouti, Madagascar, Nigeria, Rwanda, Somalia, Sudan, Zaire, Zimbabwe ...... Michael H.R. Jordan Director, Department of Investments,Asia I ...... Torstein Stephansen Divisional Manager-China, Indonesia, Kiribati, Papua New Guinea, Thailand, Vanuatu,Viet Nam ...... Sakdiyiama...... n...... Kupasrimonkol Divisional Manager-Fiji, Korea, Malaysia, Philippines, Solomon Islands, Tonga, Western Samoa ... Vijay K. Chaudhry Director, Department of Investments,Asia 11 ...... Wilfried E. Kaffenberger Divisional Manager-Burma, India, Nepal ...... Athishdam Tharmaratnam Divisional Manager-Afghanistan, Bangladesh, Maldives, Pakistan, Sri Lanka ...... Mohan R. Wikramanayake Director, Department of Investments, Europe and Middle East ...... Douglas Gustafson Divisional Manager-Cyprus, Greece, Portugal, Spain, Turkey,Yugoslavia ...... Jean-Philippe F. Halphen Divisional Manager-Egypt, Hungary, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Saudi Arabia, Syria, United Arab Emirates, YemenArab Republic ...... Edward A. Nassim Director, Department of Investments, Latin America and Caribbean I ...... Helmut Paul Divisional Manager-Costa Rica, El Salvador,Guatemala, Honduras, Mexico, Nicaragua ...... PeterJones Divisional Manager-Antigua and Barbuda, the Bahamas, Barbados, Belize, Colombia, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Panama,St. Lucia, Trinidad and Tobago, Venezuela...... Pho Ba Quan Director, Department of Investments, Latin America and Caribbean 11 ...... Guillermo Schultz Divisional Manager-Bolivia, Brazil, Paraguay, Uruguay ...... Everett J. Santos Divisional Manager-Argentina, Chile, Ecuador, Peru ...... Eduardo Costa Director, Capital Markets Department ...... David B. Gill Deputy Director ...... Antoine W van Agtmael Divisional Manager-South Asia, Argentina, Bolivia, Brazil, Chile, Panama, Paraguay,Peru, Uruguay, West Africa, Cyprus, Hungary,Portugal, Spain, Yugoslavia,Jordan, Morocco, Saudi Arabia, Tunisia ...... Jayant S. Tata Divisional Manager-East Asia & Pacific, Central America & Caribbean, Colombia, Ecuador, Mexico, Venezuela,Eastern & Southern Africa, Nigeria, Turkey,Oman, YemenArab Republic .. R. Michael Barth SUPPORTDEPARTMENTS CORPORATEPROMOTION AND SYNDICATIONS Director ...... GGiovanni nc...... c...... Vacchelli3 Manager, Business Developmentand Syndications ...... Francis de C. Hamilton Manager, Corporate Relations ...... Bruce W McWilliams Senior Adviser, Corporate Promotion ...... Carl T Bell
DEVELOPMENT Director and Economic Adviser ...... Richard W Richardson Deputy Director ... Daee...... Dale R. Weigel Manager, Economics ...... Nissim H. Ezekiel Chief Operations EvaluationOfficer ...... Walter 1.Cohn Chief Operations Evaluation Officer ...... Phiroze B. Medhora Manager, Caribbean Project DevelopmentFacility ...... Hugh Henry-May 75 IFC Management (continued)
ENGINEERING DeputyDirector ...... DavidB. Minch TechnicalManager, Agriculture and ForestProducts ...... FriedrichLuhde TechnicalManager, Chemicals and Petroleum...... Gilbert Hunt TechnicalManager, General Manufacturing ...... HusseinMustafa TechnicalManager, Mining and Metals...... ClausA. Westmeier Manager,Technology and Development...... AlakadriK. Bose Manager,Energy Unit ...... I. IrvingKuczynski 4 Coordinator,Africa Project Development Facility ...... AlexanderN. Keyserlingk
FINANCEAND RESOURCESMANAGEMENT PrincipalFinancial Adviser ...... VasantH. Karmarkar SeniorAdviser, Information Technology ...... - ...... AllenF. Shapiro Manager,Accounting ...... FayezulH. Choudhury Director,Finance and Planning ...... RichardH. Frank5 Manager,Financial Planning and Policy...... i ...... NestorV Santiago Manager,Financial Operations ...... NicholasW Noon Manager,Planning and Budgeting...... PeterA. Dickerson
LEGAL DeputyGeneral Counsel ...... WalterF. Norris ChiefCounsel...... FernandoCabezas ChiefCounsel ...... DavidG.T d'Adhemar ChiefCounsel ...... Daoud L. Khairallah
PERSONNELAND ADMINISTRATION Manager...... John H. Stewart6
PORTFOLIOOPERATIONS Manager,Special Operations ...... RolandoM. Zosa Manager,Portfolio Operations Support ...... JohnW. Lowe
SPECIAL REPRESENTATIVESAND REGIONAL MISSIONS SpecialRepresentative, Far East(Tokyo) ...... NaokadoNishihara SpecialRepresentative in Europe(London) ...... HansPollan 7 SpecialRepresentative in Europe(Paris) ...... GunterH. Kreuter RegionalMission in EastAsia (Manila)...... RichardL. Ranken RegionalMission in Easternand SouthernAfrica (Nairobi) ...... ErnestM. Kepper RegionalMission in India(New Delhi)...... Jemal-ud-dinKassum ResidentMission in Indonesia(Jakarta) ...... PeterL.F. Edmonds 5 RegionalMission in MiddleEast (Cairo) ..... i ...... (vacant)9 RegionalMission in Thailand(Bangkok) ...... C...... arlos M. Tan ResidentMission in Turkey(Istanbul) ...... i ...... ApinyaSuebsaeng 15 RegionalMission in WesternAfrica (Abidjan) ...... SamiHaddad
Theseofficers hold the samepositions in the IBRD. 1 Directorsof InvestmentDepartments and the Capital MarketsDepartment report to the Vice President,Investment Operations on new businessand to the Vice President,Portfolio Operationson all porttoliosupervision matters. 2 EftectiveAugust 1, 987, Mr.Richard H. Frankwill holdthis position,which will be renamedVice Presidency for Financeand Planning, I EffectiveSeptember 8, 1987,Mr IrvingKuczynski will holdthis position. I EffectiveSeptember 8, 1987,Mr, Vivek Talvadkar will holdthis position. EffectiveAugust 1, 1987,Mr. Eduardo Costa will holdthe positionof Director,Finance and BudgetingDepartment. 6 EffectiveAugust 1, 1987,Mr. Robert M, Voightwill holdthis position. I EffectiveNovember 1, 1987,Mr. GiovanniVaccheifi will holdthis position. I EffectiveAugust 1, 1987,Mr. Mumtaz R. Khanwill holdthis position. 9 EffectiveAugust 1, 1987,Mr. John H. Stewartwill hold this position. 15 EffectiveAugust 1, 1987,Mr. Reynaldo Ortiz will holdthis position.
76 International Finance Corporation
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77 Illustrations by Rosemary Henry-May
Design by World BanklFC Art & Design Section
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