As of September 30, 2005, IFC's committed portfolio in the transport equipment sector was US$282 million in twenty-four transactions. IFC has provided financing for projects in several countries worldwide, including China, India, Indonesia, Brazil and Mexico. IFC's clients include leading local and international OEMs as well as their suppliers.
Subsector Categories:
- Automotive Components
- Vehicles
- Wholesale Distribution
Examples of IFC investments:
- TBK (China): In 2005, IFC committed an A Loan of US$4 million to assist with the financing of a greenfield plant to manufacture non-asbestos brake linings and pads for commercial vehicles in Changchun, Jilin Province in northeast China. The Project is implemented through a joint venture company established by TBK Co., Ltd., which is Japan's leading producer of brakes, and Changchun Shili Automobile Brake Parts Co., Ltd. (China).
- IAL (India): In 2005, IFC subscribed $7.5 million in equity in two separate companies of the International Auto Group, an Indian automotive components group headquartered in Pune, supplying components to truck, construction equipment and tractor original equipment manufacturers. The financing is assisting IAL to expand capacity at its plants in Jamshedpur and Pune and to build a new plant in Chennai.
- Astra Otoparts (Indonesia): In 2005, IFC provided a corporate loan of US$24 million to Astra Otoparts, which is Indonesia's largest manufacturer and distributor of automotive components for cars and motorcycles, and an existing IFC client. The IFC financing was used to part finance Astra's corporate investment program and permanent working capital requirements for continued growth.
