Electronics & Machinery
As of 2005, IFC has invested over US$400 million along the global electronics supply chain ranging from foundries and component manufacturers to OEMs representing projects of approximately US$1.6 billion in assets. IFC's investments in Electrical Equipment provide support for manufacturers of transformers, switchgear, electric motors & generators, etc. which are used in the power supply industry, as well as in a wide variety of industrial manufacturing and process businesses. IFC provided equity, quasi-equity, and debt financing for our greenfield projects, expansion, and acquisitions in East Asia, Eastern Europe, South Asia, and Africa. IFC's average rate of investment in the sector is approximately US$50 million to US$80 million per year.
Subsector categories:
- Component Manufacturing
- Contract Electronic Manufacturing and Services
- Data Processing
- Electrical Equipment
- Professional, Scientific, and Technical Services
- Switchgears
- Telecommunication Hardware
- Transformers
Examples of IFC investments:
- EPIQ Group (Bulgaria, Mexico): A European contract electronics manufacturer focusing on the automotive industry. IFC is financing part of the company's expansion and working capital in Bulgaria and Mexico through a Euro 20 million loan, with partial conversion features. In 2001, IFC financed the establishment of EPIQ's facility in Bulgaria.
- Fabrinet (Thailand): A leading Thai contract manufacturer in the opto-electronics field. IFC is providing $ 10 million to support the company's on-going expansion plans.
- Crompton Greaves (India): Crompton Greaves is part of the Thapar Group, one of India's largest players in the electrical equipment and engineering industry. IFC provided Crompton Greaves a US$25 million corporate loan to support its ongoing modernization, and financial and operational restructuring efforts. IFC's investment helped Crompton Greaves further cut costs and enhance the competitiveness of its products in both domestic and international markets, while also increasing the average maturity of its debt.
- Moser Baer (India): One of the top three manufacturers of blank CD and DVD media globally. IFC has supported this Indian company from the early stages of its development with equity and debt financing of $71 million in aggregate.
Appliances
As of September 2005, IFC's portfolio in the appliance sector comprised eight projects with over US$320 million in financing provided in countries such as Turkey, Russia, Romania, and Jordan. IFC's clients include leading local and international OEMs as well as their suppliers. From 1975 to 1999, IFC supported LG's growth from a small appliance producer to an international electronics giant and is currently supporting Arcelik's growth in Central and Eastern Europe as well as Turkey.
Examples of IFC investments:
- Arcelik S.A (Turkey): In 2005, IFC provided a financing package of an €80 million A-loan and an €80 million B-loan to Arcelik S.A, the market leader in the Turkish household appliance sector. The funds were used to fund part of Arcelik’s corporate investment program in Turkey and to finance a greenfield plant in Russia.
- Arctic S.A. (Romania): In 2003, IFC provided a US$10 million financing package to Arctic S.A., Romania’s only producer of refrigerators with revenues of US$53 million in 2002. The funding was used to help Arctic modernize its operations, expand its production capacity and restructure its existing debt.
- MEC (Jordan): In 2003, IFC provided a US$19 million loan to MEC, the household appliance and electronics leader in Jordan. The IFC financing was used to relocate and modernize the company’s existing production lines and to restructure short-term debt.
