International Finance Corp
Loans totaling $10.7 million have been approved by the International Finance Corp. to assist private enterprises in Colombia, Uruguay and Zimbabwe.
The International Finance Corp., the private-sector arm of the World Bank, provides long-term loans without government guarantees, and equity investment to private enterprises in developing countries.
A $6 million loan was given to a leading manufacturer of synthetic fibers, Enka de Colombia S.A. in Colombia, to finance a $13.3 million expansion project.
The project will increase the company's output of nylon tire fabric and industrial yarn and will help meet needs of domestic tire producers, who are operating at full capacity. The project was designed to reduce needs for tire fabric imports.
The British merchant bank, Kleinwort, Benson Ltd., has been asked to underwrite a private placement of $3 million of the loan. Additional financing includes $1.8 million from local and international sources. IFC helped to establish the company 20 years ago.
IFC approved a loan to restructure and expand the operations of an export-oriented, integrated fishing enterprise, Astra Pesquerias Uruguayas S.A., in Uruguay.
The Danish Industrialization Fund for Developing Countries will lend $2 million for the project and the IFC and three other long-term lenders are rescheduling their loans.
The restructuring and expansion will support the company during a period of declining fish prices. Astra's operations are based in the port of La Paloma, 230 kilometers east of Montevideo. It is the largest employer in a less-developed area of Uruguay, providing 1,000 jobs. The company is expected to generate gross foreign-exchange earnings of $17 million a year at full capacity. IFC helped establish the company in 1978.