Dec. 2000 PACKAGED DEALS
Ludi Joseph, (202) 473-7700, ljoseph@ifc.org
Africa & Asia
Jannette Esguerra, (202) 458-5204, jesguerra@ifc.org
Middle East & Latin America
Brigid Janssen, (202) 458-4698, bjanssen@ifc.org
Europe
Lynn Véronneau, (202) 473-6005, lveronneau@ifc.org
General press info
Washington,
D.C., December 8, 2000 —The following is a package of brief
announcements about IFC transactions signed in the past month for investments
that will support private sector enterprises in the developing world. Packaged
Deals is a monthly digest of new IFC investments that have not been announced
in our regular press releases. More information is available by contacting
the Media Relations team listed at the end.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people’s lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.
CROATIA—PHARMACEUTICALS RESEARCH
IFC is supporting the establishment of the biggest scientific research
and development facility in Central and Eastern Europe and promoting widespread
use of international laboratory standards with a loan of US$47.5 million
to Pliva d.d. in Zagreb, Croatia, the region’s leading pharmaceuticals
company.
The $120 million project will consolidate Pliva’s R&D activities in
one state of the art facility that will increase efficiency and multi-disciplinary
interaction. At the new institute which will open in 2002, all Pliva's
R&D activities will comply with international "Good Laboratory
Practice" (GLP). There will be better working conditions for
the scientists and the institute will employ about 500 people
Pliva will rely on the enhanced research and development operation to underpin
growth and strategic development of the company. Financing consists
of $25 million for IFC's own account, $12.5 million for the account of
participant banks, and $10 million in quasi-equity. Remaining costs
for the project to build and equip the R&D institute will come from
other multilateral institutions and through Pliva's cash generation.
MOZAMBIQUE—PROCESSING OF WHEAT FLOUR
IFC will provide a $1.3 million guarantee facility to a Mozambican commercial
bank to finance construction of a wheat mill by Merec Industries Lda, Maputo,
Mozambique. Merec will expand its factory in the suburb of Machava
by adding a mill and storage silos to mill imported grain. Production
is scheduled to begin in January 2001. The $3.8 million project will
create 55 direct jobs, substitute grain imports for flour imports, increase
the number of millers, and—through its modern technology and pioneering
advisory services to bakeries—enhance the quality of bread available to
poor communities in Mozambique.
The sponsors are Merec Financial Corporation and Arrandale Holdings, owned
respectively by Mr. Mhamud Charania and his father Mr. Haiderali Ramji.
The company was founded in 1998 and began producing maize meal and
copra oil in its Machava factory. The sponsors also own a distribution
company, Africom, which will supply wheat flour to all parts of the country.
NIGERIA—CENTER TO TRAIN FIRE BRIGADE AND SAFETY PERSONNEL
IFC is providing a loan of $500,00 and equity of $80,000 to Safety Center
International, in Nigeria to set up the country’s first high standard
center to train and certify fire brigade and safety personnel who carry
out hazardous assignments. The $2.2 million SCBA (Self-Contained
Breathing Apparatus) center in Port Harcourt will train safety operators
in the public and private sectors on the effective use of SCBA to save
lives and property, including rescuing victims trapped in fires in buildings,
oil rigs, ships, aircraft, and underground mines. Intertec Engineering
Nigeria Limited, Shell Nigeria, and the German Municipal Fire Services
College (Landesfeuerwehrschule, Hamburg) collaborated on the development
of training courses.
The project sponsor is Intertec Holding Limited (IHL) whose shareholders
include local businessmen Prince Oyinlola, Chief Amenechi, H. Enuha, Alhaji
Umar, and B. Soyode, as well as German engineer Jobst Kruttke who has worked
in Nigeria’s oil and gas sector for over 10 years. Deutsche Entwicklungshilfe
Gesellschaft mbH (DEG) and IFC each have 10 percent equity in Safety Center
International.
SOUTH AFRICA—FINANCING AND SERVICES FOR BLACK-OWNED CONSTRUCTION BUSINESSES
IFC will help to fledgling contracting firms by providing financing amounting
to $2 million (a loan of $1.9 million and equity of $100,000) to Tusk Project
Management (Pty) Ltd., South Africa. Tusk evaluates and administers building
contracts and obtains performance guarantees, leaving contractors (usually
small black-owned businesses) free to concentrate on construction work,
yet becoming familiar with all aspects of project management. The
contracts are to build schools, clinics, low-cost housing, and other public
buildings for local authorities. Tusk makes working capital loans
of up to 10 percent of contract value to contractors, monitors raw material
procurement, advises on work, and organizes payment claims.
Tusk is owned by its founder and managing director, Hennie de Villiers;
Imali Capital (Pty) Ltd., a small venture capital company; Hudgro Investments
(Pty) Ltd.; and Mphangwa Selamolela, CEO of the Black Construction Industry
Council of the Northern Province. South African company Brait and
IFC will each hold 10 percent equity in the $4.2 million project.
SRI LANKA—IFC SEMINAR ON FINANCIAL SERVICES CONSOLIDATION
A recent IFC seminar on emerging trends in financial services consolidation
with IT-based delivery in Bentota, Sri Lanka discussed emerging trends
in Sri Lanka’s financial system which is undergoing major changes with
increased mergers, consolidations, and hostile takeover attempts.
The seminar addressed issues facing the sector and the role of information
technology in the delivery process. It brought together key regulators,
CEOs of banks and financial services companies, and senior professionals
with a practical interest in financial market development. The speakers,
who recounted regional and global experiences, guided discussions on how
the evolving Sri Lankan market can deal with issues related to consolidations
and the role of regulators and technology in improving efficiency and effectiveness.
There were presentations on how more developed markets have dealt
with similar challenges.
The seminar complements IFC’s financial markets strategy in Sri Lanka
which is aimed at supporting domestic financial institutions and developing
long-term debt markets, insurance, pensions, housing finance, and leasing
industries.
|
