International Finance Corp.
The International Finance Corp., which until two years ago was financed almost exclusively by the World Bank, reported that by the end of fiscal 1986 it will have borrowed $350 million from international capital markets.
Since its inception in 1957, the IFC had supplemented its World Bank funding with contributions from shareholders and earnings from operations and borrowing.
In 1984, the board of directors voted to raise funds from the international capital markets.
"These new borrowings have enabled the corporation to significantly reduce the cost of funding to developing countries," said Richard Frank, IFC director of finance and planning.
The corporation borrowed money through seven private placements in the international market in the 1986 fiscal year: Three were denominated in U.S. dollars and placed in offshore markets; two were denominated in deutsche marks and placed in the German domestic market; one was in European Currency Units (EUC) sold in France, Belgium and Luxembourg; and one was a Swiss Franc issue placed in Switzerland.
In its 29 years of financing projects, it has earned a profit in every fiscal year. Since its first borrowing in 1984, it has raised more than the equivalent of $470 million through placement of bonds in the Eurocurrency markets, the Federal Republic of Germany and Switzerland.
With the approval of a $650 million capital increase in 1984, IFC's capital base will more than double. The corporation plans to use the capital to expand investment operations and expects to have invested $7 billion in projects worth $30 billion in cooperation with private investors from 1984 to 1989.
The IFC also recently reported that, in partnership with the Fiji National Provident Fund, the Sheraton Overseas Management Corp. and individual investors, it is financing a $27.6 million, 300-room hotel on Denarau Island, Fiji.
The resort hotel, named the Fiji Sheraton, will provide employment for 300 people and is expected to generate $9.5 million a year.