The International Finance Corp., the World Bank affiliate for investing in the private sectors of developing countries, has agreed to a financing package to help establish an equipment-lease financing company in New Delhi.
The new firm, India Lease Development Limited, expects to be able to finance equipment leases worth about $18.75 million -- largely to small and medium-sized companies in manufacturing, mining, agriculture, construction and transportation -- in its first three years of operation.
The agreement is part of a broad program between the IFC and the Indian government to extend the leasing industry in India. The program will assist fast-growing, medium-scale businesses by establishing four regional companies.
Under the agreement, the IFC will commit $375,000 to the firm's initial capital. An additional $1.38 million will come from the Motor and General Finance Group of New Delhi -- the major sponsor of the project -- and $750,000 from the Punjab National Bank, the country's fourth-largest commercial bank.
Additionally, the IFC has agreed to make a $2.5 million long-term loan for the project, while PNB and MGF are expected to provide loans of $2.5 million and $1.25 million, respectively. Inter-American Development Bank
The Inter-American Development Bank has approved a $14.4 million loan to help finance studies of prospective development projects in Ecuador.
The loan will be used to study the feasibility of projects in agriculture and fisheries, transportation, energy, mining, education and sanitation.
In addition, the IADB approved a $700,000 grant from its special operations fund to finance studies of projects that would benefit low-income sectors of the country.
The IADB also has agreed to lend $4 million to Haiti to support an irrigation project expected to benefit about 13,000 members of low-income farm families.