INTERNATIONAL FINANCE _ w > CORPORATION A Member of The World Bank Group ANNUAL REPORT 1969 WIW- v> Sp >ww 4p '~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ a 1 v ibh 404~~~ F "The purpose of the Corporation is to further eco- nomic development by encouraging the growth of productive private enterprise in member coun- tries, particularly in the less developed areas, thus supplementing the activities of the International Bank for Reconstruction and Development.... In carrying out this purpose, the Corporation shall: i. in association with private investors, assist in financing the establishment, improvement and expansion of productive private enterprises iwhich would contribute to the development of its member countries by making investments, ivithout guarantee of repayment by the member government concerned, in cases wvhere suffi- cient private capital is not available on reason- able terms; ii. seek to bring together investment opportuni- ties, domestic and foreign private capital, and experienced management; and iii. seek to stimulate, and to help create conditions conducive to, the flowv of private capital, do- mestic and foreign, into productive investment in member countries. "The Corporation shall be guided in all its deci- sions by the provisions of this Article." Article One Articles of Agreement International Finance Corporation International Finance Corporation OFFICE OF THE PRESIDENT 1818 H Street, N.W. Washington, D.C. 20433 September 29, 1969 Dear Mr. Chairman: The Annual Report of tne International Finance Cor- poration for the period JLIIy 1, 1968 to June 30, 1969 is submitted herewith to the Board of Governors by the Board of Directors in accordance with Section 8 of the By-Laws of the Corporation. The Report describes the activities of IFC during the fiscal year, summarizes its position as of June 30, 1969 and includes a description of commitments made during the year. Appendices to the Report include financial state- ments and data on each of IFC's commitments. Sincerely, Robert S. McNamara Chairman Board of Governors International Finance Corporation Contents Page The Year in Summary ........................................ 2 Main Facts/Fiscal 1969 ................................... 3 Development and the Development Enterprise ....... ............ 4 The Year's Operations .................................... 7 Promotion of Development Enterprises ........ ............. 8 IFC Investments in Brief/Fiscal 1969 .......... .............. 9 Tourism ............................................. 10 Agribusiness . .................................... 11 Standby and Underwriting ........... ....... 11 Continuing Support ........ ................. 11 Development Finance Companies ......................... 12 Sponsors ......... ........................ 12 Table: Projects That Have Begun Operations ...... .......... 12 The Year's Financial Record . .................................. 14 Table: Commitments and Resources Available for Commitment. . 14 Association of Private Funds in IFC Investments ..... ......... 14 IFC's Portfolio in Fiscal 1969 ........... ................... 15 Profit and Loss on Investments .......... .................. 15 Administration and Membership ............. .................. 17 Membership ......................................... 17 Table: Commitments Fiscal 1969 ............. .................. 18 The Year's Principal Investments ............ ................... 19 Argentina: Dalmine Siderca S.A .19 Editorial Codex Sociedad An6nima .20 Brazil: Papel e Celulose Catarinense S.A .21 Petroquimica Uniao S.A .21 El Salvador: Hoteles de Centro America Sociedad An6nima. . . 22 India: Zuari Agro Chemicals Limited .23 Iran: Sherkate Sahami Navard va Luleh Ahwaz .24 Jamaica: Pegasus Hotels of Jamaica Limited .25 Korea: Honam Silk Industry Company .25 Pakistan: Dawood Hercules Chemicals Limited .27 Karnaphuli Paper Mills Limited .27 Thailand: Siam Cement Group Companies .29 Tunisia: Compagnie Financiere et Touristique, S.A .31 Turkey: Sentetik Iplik Fabrikalari, A.S .32 Venezuela: Protinal C.A .................... 32 Annual Report International Finance Corporation 1969 The Year in Summary Total commitments to development projects as- A quarter of the amount of IFC's commitments sisted by IFC in Fiscal 1969, taking account of the during the fiscal year were to agribusiness enter- commitments of others and of IFC at tl-ie time of the prises: investments that added or expanded an indus- IFC investments, came to $500 mnillior, for the first try in the economy of a member country while at the time. Total commitments made together with IFC in same time helping to improve or expand agriculture. all of the 131 development enterprises assisted by Over half of the year's investments were other indus- IFC since its inception passed the $2,000 million trialization projects. The remainder were investments mark during the fiscal year. in tourism and development banking. IFC's 27 commitments during Fiscal 1969-made Strong support for IFC's investments from private to 24 companies in 16 countries-reachied $92.9 mil- investors helped replenish the Corporation's funds. lion, compared wit milliont insFiscal 1968 and Sales to financial institutions and other private in- lion, compared with 50.4 million in Fiscal 1968. ad vestors of portions of IFC commitments amounted to an average of $36.2 million in the five years, Fiscal 1964-1968. 44 per cent of the year's commitments, returning some $40.9 million to IFC for further use in develop- Of the 27 investments, 15 were major commit- ment investments. This includes $1.1 million acquisi- ments, that is, those of $500,000 or more. During tion by others of securities covered by IFC standby the previous five years, total commitments averaged or underwriting commitments. 17 annually, and major commitments averaged 11 To reach a wider range of development projects, a year. IFC continued to diversify its investments, and to in- The addition of $92.9 million in new commitments crease the flexibility of its operations. In Fiscal 1969, in Fiscal 1969 meant that in the one f scal year the the Corporation: Corporation completed a fourth of the $364.7 million -Undertook wider responsibilities in the promo- commitments it has made since its inception in 1956. tional field, so as to meet needs for pre-investment 2 help in a number of different situations: pioneering, Main Facts/Fiscal 1969 in Tunisia, tourism development through a special- ized holding company set up to promote tourism on During the year July 1, 1968 through June 30, a national basis, investing in promotional companies 1969 IFC: in Colombia and Honduras, and undertaking to help * Made 27 commitments totaling $92.9 million, rais- in the development, from the ground up, of an indus- ing gross commitments to $364.7 million in 131 de- trial project in Indonesia. velopment enterprises in 39 countries. -Made the largest commitment in its history, * Took part in financings totaling $500 million to amounting to $22.1 million, to finance simultane- establish or expand private enterprises in developing ously four industrial expansion programs of the Siam member countries. Cement Group Companies, in Thailand, recovering * Recovered $54.3 million-or over half of the funds over two-thirds of the commitment through partici- it committed-$40.9 million through sales to finan- pation of 19 financial institutions in the United States, cial institutions and other private investors of por- the Caribbean, Europe and Asia. tions of its commitments, the remainder chiefly -Made first investments in three fields: printing through repayments. nd publishing, in Argentina; raw silk production, in * Made its largest investment to date-$22.1 million Korea and animal feed additives in Venezuela. in a Thai building materials complex of industries. Korea; and animal feed additives, in Venezuela. * Undertook wider responsibilities for promotion of -Helped set up a petrochemicals industry in development enterprises: Brazil with the object of producing the raw materials -Organizing, in Tunisia, a new type of investment for a series of further development enterprises in the country. company designed to develop the tourism potential of a country, or region, as a whiole; -Made its third largest investment-approxi- -Investing in promotional companies in Colom- mately $16 million - in a new Indian fertilizer bia and Honduras; enterprise. -Undertaking primary responsibility for organiz- Net income rose to $7.5 million in Fiscal 1969 from ing ajointventure in cement production in Indonesia. $6.2 million in Fiscal 1968, and the average annual * Showed an average annual return of 8.45 per cent return on all investments held in IFC's portfolio at over the present life of all investments held in port- June 30, 1969 was 8.45 per cent, compared to 7.61 folio on June 30, 1969 ... Had net income of $7.5 per cent in the previous year. million. During the year the Republic of China, Mauritius, * Increased total resources available to $404 million, Singapore, Uruguay and Yugoslavia joined IFC, from $340 million in Fiscal 1968. bringing its membership to 91 at June 30, 1969. * Increased membership to 91 countries. Project Cost' of Development Enterprises Assisted by IFC Through Fiscal 1969 Was Twenty Times IFC's Capital and Six Times IFC Commitments M, i.ns oF Dollars Project Fiscal 1957-61 Fiscal 1962-66 i Fiscal 1967 Fiscal 1968 i Fiscal 1969 Costs, $207.4 $885.5 I $335.8 $230.9 $505.3 $2,165 Mil iion . / , >> $51 .2 $1 21.2 1wi o i $92.9 ' IFC Commitments-, l 64A , $364.7 Million / - IFC Capital \, $106.5 Million \5ou lTotal of cormmitments by IFC, and by others at the t,me of IFC commitment, to p,ojects assistedi by IFC. 3 Development and the Development Enterprise The widening scope, greater flexibility and increas- development effort. In this phase it becomes pos- ing volume of IFC activities correspond to changes sible, in many places, to build a superstructure of in the context for economic growth in many parts of businesses and industries-development enterprises a large number of developing member nations. These -that put to productive use the work skills and the changes tend to place increasing responsibility for basic economic improvements made earlier. continued growth, and for improvement of living Development enterprises produce the goods and standards, upon the use of private enterprise in the services by which livingstandadsae thed. and development process. Cef ,mong tcese , a must be financed, in large part, by the private sectors Chief among these changes, and a change with of th deeoigadteidsraie ain.A pervasive effect, is the fact that over the past two of the developig and the industrialized nations At decades a great deal of progress has been made in this stage of development, therefore, IFC's assign- building basic economic facilities. ment to supplement the work of the World Bank by This preparation for industrialization, and the strengthening the private sector of developing mem- growth of commerce, has been financed, for the ber nations becomes both more feasible (because of most part, with funds supplied-as funds have tradi- the supporting infrastructure that has been built) and tionally been supplied for most infrastructure- more critical (because without expansion of produc- tironugh bhee supplied for b oenltsady tive enterprise economic development, and-par- through the public sector, by governments, and by ticularly-the riseof livingstandards, cannotcontinue international agencies, chiefly, among the latter, by as it should). the World Bank. The building of these foundations, such as roads, harbors, railways, power producers, The role of private investment in the development and the like, makes ready for a second ohase of the task goes beyond the production of goods and 4 S - I~~~~~ Control room of the ready-mixed concrete operation (above) at Siam Cement Company Limited, one of the six-company Siam Cement Group, Thailand. In Fiscal 1969 IFC committed $22.1 million to the Group's multi-project expansion program, the largest commitment the Corporation has made. New four-strand continuous casting machine (left) at Dimine Siderca S.A., part of the Argentine steel company's expansion project which IFC is helping to finance. The Hotel Nairobi Intercontinental (below), IFC's first tourism investment, was inaugurated in May 1969. The Corporation's commitment to the Kenya hotel project, which also included game lodges and a beach hotel, was made in Fiscal 1967. _~~~~~~~~~~~~ I *- - =l ;- S~~~~~~~~~~~~~~~~~~~~ -AA- services to raise living standards, the en-iployment of of the word: returns regarded as satisfactory by an people and their skills, and the employment of the investor responsible to stockholders for the integrity energy and basic service facilities provided when and the increase of capital entrusted to him, weigh- infrastructure is built. ing the risks involved and the value of the manage- A rising standard of living requires rising per capita ment and technology accompanying the investment. consumption. Per capita consumption can rise only As is the case elsewhere, the profits of a development if per capita production rises, and higher productivity enterprise, if they are to be an incentive to invest- usually proceeds from the improvement of technol- ment, have to be realizable, and the capital invested ogy, and production and management methods, recoverable at a satisfactory rate, in convertible form. chiefly available from producers in the private sectors Public profits are conceived of as the usual objec- of the developing and the industrialized countries. tives a public sector planner would have in putting Rapidly increasing use of advanced technology to to use scarce and costly capital for national purposes, produce more efficiently and more economically is including: higher national income; higher foreign making world trade increasingly compelitive. If their exchange earnings or reduced foreign exchange out- products are to compete, the developing countries lays; higher productivity of capital and labor; higher need-no less than the industrialized ccuntries-the employment; increased supplies of industrial and means to produce at low unit cost. Even where labor agricultural goods and services needed by the coun- costs are low, this will often require the introduction try; expanded and improved labor and management of advanced production and management methods. skills; growth of financial, service and trade busi- Many developing nations are heavily in debt for nesses to connect up, finance and handle the prod- their infrastructure. They need development invest- ucts of the country's growing economy; growth of a ments that can pay for themselves out of income national capital market and of its connections to the created by production the investment makes pos- rest of the world, and achievement of such gains sible. As the private investment is made only if the with minimum addition to the national debt serv- investors believe it will make profits, it is such a self- ice burden. financing project. When the investors' expectati'ons This leaves the question whether private enterprise farenci rng projct,. When the. nvt epctations takes a form permitting it to serve both public and are t brdned oith is dth private profit motives. The joint venture, in the shape are burdened with new debt. of the multinational company, has the elements of The desirability of using private inves;tment to an such an enterprise. It calls for the marriage of local increasing degree in the development process, or the and foreign know-how, the use of foreign manage- need for doing so, runs up against the fact that there ment to develop local management where such de- is currently a world shortage of capital. The better velopment is needed, and the joining of local and developed as well as the less developed countries foreign production and marketing techniques. Its are making extensive-and capital corisuming-ef- ownership is substantially local as well as foreign. Its forts to better the conditions of life. TI-iis forces up stockholders are therefore property owning and in- the cost of capital, as evidenced by interest rates, in come earning citizens of the country in which the addition to making capital harder to find. This situa- development enterprise is located, as well as of the tion faces capital using projects everywhere with a country or countries from which capital is exported more and more insistent question as to whether the for the enterprise. The multinational company is con- intended use of the capital will repay, its scarcity sequently exposed to the priorities of stockholders in value; that is, will it be profitable? both developing and industrialized countries. IFC takes the question to mean: will tne proposed Of the 31 principal development enterprises in use of capital yield both public and private profits? which IFC has been associated in the past three years, The Corporation requires that the answer be yes in 19-or 61 per cent-were, from their outset, joint both cases: it believes that in the current stage of venture, multinational companies. By its emphasis development, and under present and foreseeable upon this form of development enterprise the Corpo- conditions of capital markets, the continiued success ration is an influence in the capital exporting coun- of development in raising living standards will turn, tries for continuing the trend toward acceptance of in many places, to an increasing degree upon locat- the multinational company as the way to do business ing, and bringing into operation, development enter- in developing countries. While there have been, and prises that satisfy both public and private profit there will be, exceptions dictated by individual needs motives. of particular projects, the joint venture, multinational By satisfactory private profits in a development company will continue to be the development enter- enterprise is meant money profits in the usual sense prise into which IFC typically puts its resources. 6 IFC Commitments by Years and by Areas 1957-1969 1957-61 1196211963 1964 1965 1966 1967 1 968 1969 14% 16% 5% 6%7% 10% 13% 14% 25% 50 100 150 200 250 300 350 400 Milhioqs of Dollars 25 75 125 175 225 275 325 375 Africa Asia & Mideast Latin America & Caribbean | 19% 33% 43% I$ 0 The Year's Operations The major increase in IFC operations in Fiscal 1969 countries during the past five years. In Fiscal 1969, has its roots in a buildup of capabilities, and in di- IFC made its first major investment in Iran, extended versification of the Corporation's activities, over the its investments in Pakistan to the East Wing, and ex- past several years. tended its tourism investments to the Mediterranean, The rise in the annual amount of commitments the Caribbean and Central American areas. has been gathering momentum. While IFC commit- In 1967 more than half of total IFC investment ments averaged slightly above $10 million a year in went to Asia and the Middle East. In 1968, more than the Corporation's first five years, 1957-1961, and just half of the investment total went to Africa, and IFC's over $24 million a year in the next five years, through largest investment to that time was made in Africa. Fiscal 1966, commitments rose in Fiscal Years 1967- In 1969, IFC's largest investment to date was in Asia, 1969 to an average of $64 million. it made seven major investments in the Latin America- The size of commitments has been growing. IFC Caribbean area, six in Asia, one in the European area made three commitments in Fiscal 1967 between $10 and one-in a pioneering tourism promotion com- and $12 million compared to a previous high of pany-in Africa. about $6 million. In 1968 the size of IFCs largest Since its establishment in 1956, the Corporation abnglecomitmentouts$emil I 16 t sieouccselar ges has committed $155.8 million, or 43 per cent of its Fisingle1969ba cm itm entr entof million . s i total investments, in Latin America and the Carib- bean, $119.4 million, or 33 per cent, in Asia and the A parallel rapid increase in the association of pri- Middle East, and $69.1 million, or 19 per cent, in vate funds in IFC investments has helped keep IFC Africa. The remaining 5 per cent of I-C's investments liquid for financing more and larger investments. were in Europe and Australia. Further, as favorable judgments upon the quality of Diversification into new fields has also helped lay projects in which the Corporation takes part, private the basis for a growing number of investments an- participations have helped bring more projects nually. In 1966/67 IFC began committing funds to to IFC. tourism development; placed major emphasis- Diversification has taken several forms: through fertilizer investments in Latin America, Asia The Corporation has been reaching out to new and Africa-upon assisting industry and agriculture geographical areas, making first investments in 10 simultaneously; and began investment in services 7 such as electricity supply. Diversificat:on continued the large increase in IFC commitments. However, in 1968/69 with increased promotiorial work, and commitments have been made that would not have with first investments in three fields: animal feed been possible without the availability of the credit. additives and printing and publishing in Latin Amer- By the end of Fiscal 1969, 106 projects assisted by ica, and silk production in Asia. IFC, with a total cost of over $1,276 million, had be- To assist projects of growing size and complexity, gun operations. Fifty-two of these projects, with a and projects in new fields, IFC has been increasing total cost of approximately $671 million, were in the flexibility and variety of its financing methods. Latin America, and 24 operative projects in Asia and As a result, IFC has become known as a source of the Middle East had a total cost of $301 million. Four- financing techniques for packaging together the teen operative projects inAfricacost$124 million, and funds, the management, the national, multinational 13 projects in Europe had a total cost of $178 million. and intergovernmental backing, local and foreign Three other IFC supported projects that have become interests, and, of primary importance, the advanced operative, in the Caribbean and Australia, cost over technology, that a modern business needs-in the $2 million. developing country no less than elsewhere-if it is to be of a size and capability to make significant con- Promotion tributions to economic development. of Development Enterprises IFC's growth and diversification ha. built on re- moval, in 1961, of restrictions upon its ability to sup- To these bases for increasing the size and variety ply capital to development investment projects in the of its investments, IFC in Fiscal 1969 added wider form of equity, and upon the availability to IFC, since responsibilities for the promotion of development 1966, of the right to borrow some $400 million from enterprises in member countries. the World Bank, for use in IFC's lending operations. This springs from the need of many potentially $100 million of these available funds has been placed sound projects for financial and technical help in the at IFC's disposal, but, due to the high recovery of the preinvestment stage, and is aimed at making possible Corporation's funds through sales of portions of its projects that might otherwise not be realized. commitments to other investors, IFC has not been Under the new policy, IFC committed funds dur- required as yet to draw upon this credit, despite ing the year to two industrial and two tourism IFC Commitments by Type of Business Fiscal 1957 Through Fiscal 1969 Per Cent of Total 0 5 10 15 Manufacturing Iron & Steel. Fertilizers .............................X Cement & Other Construction Materials ...... Paper & Paper Products .................... Food & Food Processing ...................... Textiles & Fibers ........................... Machinery. Chemicals & Petrochemical Products ......... Other Manufacturing ...................... _ Other Tourism .................................... Utilities, Printing & Publishing ............... Mining ...................................... Development Banks ...........p_ 0 5 10 15 20 25 30 35 40 45 50 55 60 Millions of Dollars 8 IFC Investments in Brief/Fiscal 1969 During Fiscal 1969, the Corporation made 15 principal commitments. They were: ARGENTINA: KOREA: * A $3 million standby loan, with stock option, to 0 The Corporation's first investment in silk produc- Dalmine Siderca S.A., a leading Argentine steel com- tion: A $1.7 million equity and loan commitment in pany, to help raise, through a stock offering, $6 mil- Honam Silk Industry Company involving agricultural lion for expansion and working capital. financing to develop mulberry plantations and indus- * An equity and loan commitment of $7 million- trial financing for a silk mill to produce 350 metric IFC's first in a printing and publishing project-to tons of raw silk annually. Editorial Codex Sociedad An6nima, as part of a $25.7 million project to enlarge, integrate and consolidate PKISAN production and expand sales. * An equity and contingency commitment of $3.9 million in conjunction with a $32 million World BRAZllL: Bank loan for Dawood Hercules Chemicals Limited, * A second investment, of $1.1 million in convertible which will build a urea fertilizer plant near Lahore at debentures, in Papel e Celulose Catarinense SA., as an estimated cost of $78 million. part of new financing of $6.8 million forthe$33.8 mil- * A $6.2 million equity, loan and contingency com- lion kraft pulp and paper project in southern Brazil. mitment-IFC's first investment in East Pakistan-to * An $8.4 million equity, loan and contingency assist Karnaphuli Paper Mills Limited, the country's commitment in Petroquimica Uniao S.A., a new leading paper manufacturer, in establishing a $17 $61.5 million company to refine naphtha into a vari- million project to increase capacity by 17,000 tons ety of chemical raw materials, to be used by other a year. manufacturers to produce a wide range of industrial THI-LAND: and consumer products. A new high commitment of $22.1 million in the EL SALVADOR: Siam Cement Group Companies, to help finance a * A loan, equity and contingency commitment of $60 million multi-purpose project to expand Thai- $933,400 in Hoteles de Centro America Sociedad land's building material industry, including cement, An9nima for a $3.7 million 224 room tourist and asbestos sheet, concrete pipe and steel reinforcing An6nima for a$3.milion,24rom,tubars. This investment drew record total participation convention hotel in San Salvador to be called the in an IFC project: 19 institutions purchasing $14.9 Camino Real.inaIF rec:1intttosprhig$4. million, or more than two-thirds of the Corporation's INDIA: commitment. * A $15.9 million loan, equity and contingency com- TUNISBA: mitment-IFC's biggest single investment in India- * IFC's first investment in a specialized investment in Zuari Agro Chemicals Limited for a urea and institution: A $9.9 million investment in Compagnie compound fertilizers plant costing over $70 million Financiere et Touristique, S.A. to promote and fi- and expected to contribute to India's efforts to be- nance hotel and other tourism projects, on a nation- come self-sufficient in food. wide basis, to assist the continued growth of tourism IRAN: as Tunisia's largest foreign exchange earner. * A loan, equity and contingency commitment of TURKEY: $3.9 million-the Corporation's first major Iranian * A loan and equity commitment in Sentetik Iplik investment-in the $18 million Sherkate Sahami Fabrikalari, A.S. of $1.9 million to help the company Navard va Luleh Ahwaz plant, which will provide -for the second time in three years-to double its Iran with its first hot-rolled steel strip capacity. nylon spinning capacity, and increase production of JIAMAICA: its raw material, nylon chips, by 80 per cent. * A loan, equity and contingency commitment of VENEZUELA: $2.9 million, in conjunction with private Jamaican * A $2.1 million underwriting commitment as part investors and with British hotel, airline and financial of a $5.5 million offering of debentures, part of which organizations, in Pegasus Hotels of Jamaica Limited, are convertible, by Protinal C.A., Venezuela's leading an $8.5 million, 350 room, convention and tourist producer of concentrated animal feeds, IFC's first hotel in Kingston. assistance to this type of agribusiness industry. 9 promotional ventures, in Latin America, Africa and to invest in the new company and take management Asia. The commitments took the form of investments responsibility. IFC is designing the financing and, in in three promotional companies and commitment of general, putting the venture together. Supply of raw funds to a project in Indonesia in which IFC has materials has been found adequate and a feasibil- undertaken primary responsibility for determining ity study has been circulated to potential foreign the feasibility of an industrial project, and organiza- partners. tion of the financial and technical support for it. Tunisia 7ulrsm In a new departure in building up tourism facilities for economic development, IFC took the lead in IFC put some $14 million-or 15 per cent of the organizing in Tunisia, with strong support from funds it committed in Fiscal 1969-into tourism proj- Tunisian authorities, Compagnie Financiere et Touris- ects. The previous high was $2.9 million, or 6 per tique, S.A., a $39.3 million specialized development cent of total commitments, in Fiscal 1967. company designed both to promote and finance IFC is giving emphasis to the development of tour- hotel and other tourism projects, across the nation. ism facilities in member countries as an industry with The objective is to permit full development of special developmental impact. The potential of tour- Tunisia's tourism potential through integrated assist- ism for development in many countries is illustrated ance to it as an industry of high development poten- by the case of Tunisia. Tourism has in the last few tial. The nation's present tourist inflow is substantial years grown rapidly in Tunisia from a minor factor to and is expected to grow in the future if tourist facili- one that has replaced rock phosphate exports as the ties, such as those which Compagnie Financi&re et country's leading foreign exchange earner, and cur- Touristique plans to assist, are ready to accommo- rently provides 10,000 jobs. It is estimated that date the increase. tourism can provide a further 15,000 jobs in Tunisia in the very near future-the next four years-if the Honduras industry receives large scale, integrated support and IFC's first investment in an industrial promotion encouragement. was a commitment to Compania Pino Celulosa de Moreover, tourism is a field in which the develop- Centro America, S.A. (Copino) in Honduras. Copino ing countries often have special advantages such as was organized in Tegucigalpa with an initial capital warm climates, distinctive ways of life, archeological of $500,000 equivalent. It is conducting studies and treasures, and waters and beaches offering bathing, negotiations intended to make possible completion fishing and boating sports much of the year. Jet air of a projected pulp, paper and lumber operation that transport is making those advantages accessible to would utilize Honduras' richest known natural re- people in the northerly industrialized countries. source, its three million acre Olancho forest preserve. Continuing its assistance in this promising field in If the full-scale project is implemented it will require Fiscal 1969, IFC: an additional $77 million in capital and will be one -In Tunisia, organized the specialized tourism of Central America's largest industrial enterprises. development institution described earlier. Colombia -In Jamaica, invested in a new $8.5 million In Colombia IFC joined 12 Colombian companies project that will give the island nation convention and organizations to form Compania de Desarrollo de Hoteles y Turismo Limitada-Hoturismo. Hotu- rismo was established with an initial capital of $78,000 equivalent to plan, promote and assist in set- ting up hotel and other tourism projects; mobilize technical and financial sponsors for individual ven- tures; and foster an integrated tourist program. _ Indonesia In Indonesia, at the request of the Government, ^ 3 and together with Gresik Cement Corporation, of Indonesia, IFC has undertaken primary responsibil- ity for promoting the establishment of a cement plant. involving general study of the feasibility of the proposal, and selection of an industrial partner 110 Well Over Half of The Development Enterprises IFC Has Helped Finance Have Been Completed-Project Costs"' of These Enterprises, Shown Here by Area, Are Many Times IFC's Investment 1000 facilities now lacking, while it supplies Kingston with a major new hotel for the accommodation of busi- ness and governmental visitors, as well as tourists. 900 -In El Salvador, invested in a $3.7 million hotel fitting into a design for development of tourism on a 800 Central America wide scale. Tota! Amount of -In Colombia, invested in a small promotional IFC Commitments company for tourism development. 700 The Hotel Nairobi Intercontinental, with satellite fortWa ch Cof ntojentsf * game lodges and beach hotel elsewhere in Kenya, Have Been Made *6 to which IFC made its first tourism commitment, in _ Co jt Fiscal 1967, was inaugurated in May 1969. Completed and i Operation _ 00 Agrfibusiness 400 - '400 A further major part of IFC investment in Fiscal 1969 was for the support of agribusinesses. In this - 1 field also, the Corporation regards investment as hav- ing special developmental potential, since the result is an addition or expansion of an industry, which - 200 serves the purpose of agricultural as well as indus- - - trial improvement. E - , IFC made two commitments to combined indus- __00 trial-agricultural growth in Fiscal 1969 through in- vestments in added fertilizer capacity in member r- - U 1 0 countries. A third agribusiness commitment assisted a producer of animal feed additives and a fourth Europe Africa Asia Latin America assisted silk production. Together, these commit- Other Mideast Caribbean ments amounted to $23.6 million or approximately (1) IC co-mmments, pl-s co-m tments of oth-es ta develoPment enre,p-ses assisted a fourth of total 1969 commitments. y FC, ateth. t eof fFC -et-t. New commitments to fertilizer production were made in India-where the investment was IFC's sec- the financing of the first sizable offering of an indus- ond largest of the year and the third largest in its trial security in that nation in 20 years. history-and in Pakistan. Both investments are aimed In its 13 years IFC has assisted 14 companies in at helping the countries concerned succeed in their 11 countries with standby and underwriting commit- plans to achieve adequate food supply, and higher ments totaling $39.2 million. agricultural productivity. Together, these standby and underwriting opera- In both Korea and Venezuela IFC entered new tions-in addition to their effect upon the growth business fields in agribusiness ventures. In Korea, it of capital markets-have assisted steel-making in gave support to a project involving financing of agri- Argentina and Mexico; seamless steel tubing in cultural production and new industrial capacity, to Mexico; steel forging in Colombia; concrete prod- expand production of raw silk. In Venezuela, IFC ucts in Costa Rica; pulp and paper, and sugar, in took part in underwriting a debenture offering by Ethiopia; metal can production and animal feed the country's leading producer of concentrates to additives in Venezuela, as well as development fi- increase the nutritional value of animal feeds. nance companies in Finland, Liberia, Malaysia, Ni- geria and the Philippines. Standby and Unde:¢rwrtng Contnung u The IFC underwriting commitment in Venezuela covered $2.1 million of a $5.5 million equivalent During the fiscal year IFC gave further help to six debenture offering by Protinal C.A. for expansion development projects assisted earlier. Additional in- and working capital. The Corporation in Fiscal 1969 vestments totaling more than $3.7 million were made also gave assistance to the expansion of steel output in Papel e Celulose Catarinense S.A., paper making, in Argentina by a $3 million standby commitment to in Brazil; Compania Colombiana de Tejidos, S.A., a Nylon yarn cone winding operation at Sentetik Iplik 1 Fabrikalari, A.S. (Sifas), Turkey. IFC investments in Sifas have twice helped finance doubling of its spinning capacity in the past three years. textile producer of Colombia; the Malaysian com- National Investment Bank for Industrial Develop- pany, Malayawata Steel, Berhad; industrial financing ment, S.A., Gresce; Banque Ivoirienne de Develop- in Pakistan and Turkey through new commitments to pement Industriel, S.A. Ivory Coast; Korea De- Pakistan Industrial Credit and Investment Corpora- velopment Finance Corporation; Liberian Bank for tion Limited, and Turkiye Sinai Kalkinma Bankasi, Industrial Development and Investment; Malaysian A.S.; and for manufacture of synthetic fibers in Tur- Industrial Development Finance, Berhad; Banque key, through a second investment in Sentetik Iplik Nationale pour le D6veloppement Economique, Fabrikalari, A.S. By this last commitment, IFC helped Morocco; Nigerian Industrial Development Bank the Turkish fiber maker to double output for the Limited; Private Development Corporation of the second time in three years. Philippines; Banco de Desarrollo Econ6mico Espa- nol, S.A.; Industrial Finance Corporation of Thailand; Developmnent Finance Societe Nationale d'lnvestissement, Tunisia; and C.A. Venezolana de Desarrollo (Sociedad Finan- Companies ciera), Venezuela. IFC made equity commitments of $1.6 million equivalent to five development banks during the fis- cal year. The Corporation has committed $29.0 mil- Thirty-three companies became principal financial lion to 21 private development finance companies and, in most cases, also technical, sponsors of proj- since it initiated assistance to these institutions ects assisted by IFC during the year. These principal in 1961. sponsors added their own separate commitments of IFC made first investments of $432,028 each in $412 million to IFC's commitments of $92.9 million, Corporaci6n Financiera del Norte and Corporaci6n in helping to finance IFC assisted projects in Fiscal Financiera del Valle in Colombia. With these com- 1969. Some 114 private and public financial institu- mitments, IFC has now invested in five Colombian tions, including financial institutions participating in development banks. The others are Corporaci6n the IFC portion of the financing, plus shareholders in Financiera Colombiana, Corporaci6n Financiera Na- existing companies being expanded, also contributed cional and Corporaci6n Financiera de Caldas. During to financing these projects. the fiscal year IFC also made a first investment, of Of the 33 principal sponsors, 27 were industrial $251,371, in Ecuatoriana de Desarrollo, S.A. (Com- companies, financial institutions, or private investors pania Financiera), Ecuador. As already noted, IFC in developing member countries: made third and second investments, respectively, in The Klabin Group and the Monteiro Aranha Group Turkish and Pakistan development banks consisting in Papel e Celulose Catarinense S.A., in Brazil; of $417,222 to Turkiye Sinai Kalkinma Bankasi, A.S. Petrobras Quimica, S.A., Refinaria e Exploracao de and $36,846 to the Pakistan Industrial Credit and Petroleo Uniao, S.A., Companhia Sao Fernando de Investment Corporation Limited. Administracao e Participacoes, and Administracao e Other IFC investments in development finance Participacoes Cotil II Limitada in Petroquimica Uniao companies were in: Teollistamisrahasto Oy, Finland; S.A., in Brazil; Development Enterprises Assisted by IFC That Had Begun Operations by the End of Fiscal 1969 (in Millions of US Dollars) Gross IFC Net I FC Project Cost of Completed Commitment to Commitment to Enterprises Assisted by IFC(') these Ventures these Venturest2) Latin America .......... $ 671.0 $116.0 $ 68.6 Asia & the Middle East . . 301.0 64.0 52.2 Africa ................ 124.0 37.3 25.9 Europe ................ 178.0 17.0 11.1 Other ................ 2.1 1.2 0.9 TOTALS $1,276.1 $235.5 $158.7 0) Funds put into the enterprises together with IFC commitments, at the time of IFC investments. (2 Gross IFC commitments less sales of portions of commitments. 12 Commitments, Disbursements, Increase in Funds Made Available and Reserve Commitments Avg. FYs 1957/61 Avg. FYs 1962/66 Fiscal Year 1967 __ _____ Fiscal Year 1968 ___ _ _____ Fiscal Year 1969 8 Disbursements Avg. FYs 1957/61 Avg. FYs 1962/66 Fiscal Year 1967 Fiscal Year 1968 Fiscal Year 1969 __ io3 Increase in Funds Made AvailableM' Avg. FYs 1957/61 I!!_ _ Avg. FYs 1962/66 __ _ Fiscal Year 1967 Fiscal Year 1968 Fiscal Year 1969 lT _ _ Reserve Avg. FYs 1957/61 Avg. FYs 1962/66 Fiscal Year 1967 Fiscal Year 1968 Fiscal Year 1969 5 1 0 1 5 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Millions of Dollars (M)P,oceeds of sales of portionsof ,nvestments; repayments;capital subscriptions: net income; netf rofits on sales of investments; cancellationsof commitments. Aerovias Nacionales de Colombia (Avianca), Ba- cules Chemicals Limited, in Pakistan; varia, S.A., Cerveceria Andina, S.A., Compania Co- Dawood Industries Limited, in Karnaphuli Paper lombiana de Seguros, Compania de Seguros Bolivar, Mills Limited, in Pakistan; Corporaci6n Financiera Colombiana, Corporaci6n C.A. Venezolana de Desarrollo (Sociedad Finan- Financiera Nacional, Corporaci6n Financiera del ciera), in the underwriting of a debenture issue by Norte, Corporaci6n Financiera del Valle, Corpora- Protinal C.A., in Venezuela. ci6n Nacional de Turismo, Cuellar Serrano G6mez, Six principal sponsors were from outside the coun- and lnstituto de Fomento Industrial, in Compania de try of investment: Western International Hotels Desarrollo de Hoteles y Turismo Limitada-Hotu- Company, of the United States, in the Hoteles de rismo, in Colombia; Centro Am6rica Sociedad An6nima project in El Sal- Financiera Roble, S.A., in Hoteles de Centro Ame- vador; International Paper Company, of the United rica Sociedad An6nima in El Salvador; States, in Compania Pino Celulosa de Centro Ame- the Birla Group, in Zuari Agro Chemicals Limited, rica, S.A., the promotional company formed to lay in India; the groundwork for a pulp, paper and lumber opera- the Hedayat/Laleh Group, in Sherkate Sahami tion in Honduras; United States Steel Corporation, Navard va Luleh Ahwaz (Ahwaz Rolling and Pipe in the Zuari fertilizer project in India; BOAC Asso- Mills Company), in Iran; ciated Companies, Limited, a subsidiary of British Jamaican Development Finance Corporation, in Overseas Airways Corporation, and Forte's (Hold- Pegasus Hotels of Jamaica Limited, in Jamaica; ings) Limited, a leading British hotel and restaurant Pan Nam Koh and the Agricultural and Fishery organization, in the Jamaica Pegasus Hotel project in Development Corporation of Korea, in Honam Silk Jamaica; and Hercules Incorporated, a United States Industry Company, in Korea; chemical company, in the Dawood Hercules fertilizer the Dawood Industrial Group, in Dawood Her- project in Pakistan. 13 Commitments and Resources Available for Commitment (In Millions of US Dollars) Fiscal 1969 Total Funds available for commitment at June 30, 1968 $81.5 New commitments ............................... $92.9 Less: Sales of commitments to financial institutions and other private investors(') ..... $40.9 Other sale ................................. 3.9 Repayments of investments ....... ........... 6.1 Cancellations, terminations and write-offs ..... 3.4 54.3 Net increase in portfolio ..38.6 New resources Capital subscriptions ............. ............... 5.2 Net income .... ............................... 7.5 Net profit on sales of investments ....... .......... 0.2 12.9 Reduction in funds available during the fiscal year 25.7 Funds available for commitment at June 30, 1969 ..... $55.8 Includes $1.1 million acquisition by others of securities covered by standby and underwriting commitments. The Year's Financial Record Commitments of $92.9 million brought cumulative and underwriting commitments); $3.9 million from gross commitments by the Corporation since its es- sale to the Tanzanian Government of IFC holdings in tablishment in 1956 to $364.7 million. New commit- Kilombero Sugar Company Limited; $6.1 million in ments during the year were 84 per cent greater than repayments; $5.2 million of new capital subscrip- in Fiscal 1968. Cumulative net commitments-which tions; net income of $7.5 million; net profit on sales reflect cancellations, terminations and write-offs- of investments of $0.2 million and cancellations of increased from $259.0 million to $348.5 million dur- $3.4 million of previous commitments, which be- ing the same period. Disbursements of $33.4 million, came available for re-use. This increased cumulative compared with $33.1 million last fiscal year, brought funds available for use in the Corporation's opera- the cumulative total of disbursements to $206.5 mil- tions to over $400 million. lion. Net income rose to $7.5 million from $6.2 At the year's end, reserve against losses stood at million in Fiscal 1968. $48.6 million compared with $40.9 million a year During the fiscal year the amount of funds avail- earlier. able to IFC for new commitments increased by $67.2 million compared to $31.4 million a year earlier. Be- cause of this increase and the fact that disbursements Associationl of Private Fun ds lag behind commitments, IFC on June 30, 1969 still i FC gnvetments had funds available for disbursement and had not yet drawn on its first $100 million line of credit from the Sales to other investors of portions of IFC's loan or World Bank, although commitments had been made equity commitments have thus far been the single against it. largest means of making funds available to IFC for The $67.2 million made available in Fiscal 1969 for new commitments. commitment included: $40.9 million in sales to fi- Sales of portions of IFC commitments to finan- nancial institutions and other private investors of cial institutions and other private investors in Fiscal portions of IFC commitments (including $1.1 million 1969 totaled $40.9 million, rising at an even faster acquisition by others of securities covered by standby rate than did commitments. This includes $1.1 million 14 of acquisitions by others of securities covered by the Bahamas, Canada, Colombia, France, Germany, standby and underwriting commitments. It does not Hong Kong, Italy, Japan, Kuwait, Luxembourg, Mexico, include the amount received by IFC on account of Pakistan, Panama, Sweden, Switzerland, the United an investment closed out during the year. Arab Republic, the United Kingdom, the United IFC has sold $123.5 million, or one-third, of its States and Venezuela. cumulative gross commitments. A portion, or in some These participation and sales transactions involved cases all, of 92 of IFC's commitments, in 36 countries, IFC commitments to 39 projects in 22 countries. Of out of a total of 181 commitments in 39 countries, the sales of $40.9 million in Fiscal 1969, $23 million has been sold to financial institutions or other in- involved projects in Asia and the Middle East; $12.1 vestors. Included in these totals were commitments million, projects in Latin America and the Caribbean; of $39.2 million for standby or underwriting of securi- $5.3 million, projects in Africa; and $0.5 million, ties offerings. Of this, $26.1 million was taken over projects in Europe. by other institutional and individual investors. The potential of sales of commitments may be IFC'§ Povigofia 0n Hscai 1969 illustrated in two ways: -Total commitments (by IFC and by others at the Portfolio, including both effective and non-effec- time of IFC investments) in projects IFC assisted in tive commitments as of June 30, 1969, stood at Fiscal 1969 were more than five times as great as IFC $199.4 million compared to $160.8 million a year commitments: $500 million total commitments com- earlier, including a $1.4 million outstanding under- pared to some $93 million committed by IFC. The writing commitment. The portfolio included $72.4 approximately $44 million revolved back to the Cor- million, or 36 per cent, in equity and $127.0 million, poration through sales of commitments to other or 64 per cent, in loans. A year earlier the equity investors, used similarly, would finance an additional portion was $55.2 million, or 34 per cent, and the $200 million of development enterprises. loan portion was $105.6 million, or 66 per cent. -At the end of Fiscal 1969, the total cost of IFC- The Corporation's portfolio of net effective com- assisted development enterprises that have started mitments amounted to $152.7 million on June 30, operations stood at just over $1,276 million. Gross 1969 while a year earlier net effective commitments IFC investment in these projects was $236 million. were $157.8 million. IFC's investment in them at the end of Fiscal 1969, A total of $54.3 million, compared with $23.8 mil- net of sales of commitments to others, was $159 lion in Fiscal 1968, became available for re-use by the million, or approximately an eighth of the total cost Corporation from participations and portfolio sales, of these operational projects. The difference between repayments, and cancellations and other adjustments gross and net commitments of $77 million, used sim- of commitments. The addition in Fiscal 1969 of $92.9 ilarly, would result in other completed projects of million in new commitments, adjusted for these some $600 million total value. factors, resulted in a $38.6 million net addition to During Fiscal 1969 there were 122 transactions in portfolio. which portions of IFC commitments were taken up At year's end, the average annual return on equity by business investors. Forty-seven of these transac- investments in portfolio over their present life was tions were participations at the time of IFC's original 8.67 per cent while the return on loans was 8.31 per commitment, and 75 were sales from portfolio. cent. This resulted in an 8.45 per cent overall return- Five institutions each took portions of six IFC com- compared with 7.61 per cent a year earlier-reflect- mitments during the year. They were the Bank of ing dividends, interest and other charges; profits and America Group; the First National City Bank Group; losses on sales of portions of investments, the re- the Arab African Bank; Handelsfinanz, A.G., a mem- maining portions of which are still held by the Cor- ber of the Banca Commerciale Italiana Group; and poration; and miscellaneous charges and credits. Banque Francaise du Commerce Ext6rieur. Com- merzbank, A.G., of Germany, purchased portions of Frofit and L3§§s onneg2ment5 five commitments. Detroit Bank & Trust Company and Banca Nazionale del Lavoro, of Italy, each took During the fiscal year, IFC closed out five of its up portions of four commitments. investments, bringing the total number of its invest- Participations and sales of investments in Fiscal ments closed out to 32, in 17 countries, representing 1969 helped diversify the international flow of capital $34.9 million. to private enterprises in the developing countries. Four investments totaling $2,134,000 were closed Portions of IFC commitments were taken up by 52 out in Fiscal 1969 by reason of full repayment of financial institutions in 19 countries and territories- loans. They were: a loan of $1 million, made in 1965, 15 to Almacenes Generales de Dep6sito Santa Fe, S.A., By reason of default in payment, IFC has pre- "Almaviva", of Colombia; a loan of $224,000 made matured its loans to Aevol Industrial Company of in 1961 to Jamaica Pre-Mix, Limited, of Jamaica; a Organic Fertilizers, S.A., Greece, of which $480,000 loan of $630,000 made in 1958 to Steel Corporation is outstanding, and to D.L.R. Plasticos do Brasil, S.A., of Pakistan, Limited, of Pakistan, and a loan of of which $200,000 is outstanding. $280,000 made in 1959 to Luren, S.A. and Ladrillos Fertilizantes Sinteticos, S.A., of Peru although it is Calcareos, S.A., of Peru. current on its primary debt, is in arrears on payment The other investment closed out in Fiscal 1969 of $98,879 interest due on convertible subordinated was one of $4,657,485, made partly in 1960 and debentures. partly in 1964, in Kilombero Sugar Company Limited Shortly after the end of the fiscal year IFC received in Tanzania. The investment consisted of loans of a principal instalment of £8,700 and interest of $3,957,485 equivalent and equity of $700,000 equiva- £4,913 from Arewa Textiles, Limited, due on June 30, lent. IFC liquidated its investment in the company 1969. jointly with its foreign partners. Termination of this investment resulted from the sale of IFC's holdings to the Tanzanian Government, after the company had experienced agricultural and marketing difficulties for several years. Of the total committed by IFC to the company, $292,500 equivalent had not been dis- bursed. Sales of its holdings in Kilombero resulted in a net loss to the Corporation equivalent to $178,206, which was charged to reserve against losses. The closeout of these investments, totaling $6,791,485, brought IFC's average return on all IFC Commitments 360 closed out investments to 8.43 per cent per annum, and Sales of Commitments(') taking account of dividends, interest and other 1957-1969 charges, profits and losses on sales of investments 330 and miscellaneous charges and credits. During Fiscal 1969 IFC had net profits from sales 300 of its investments of $229,296. This resulted from profits of $407,502 made in 18 transactions involving 270 sales of equity, debentures and stock rights in 15 Sales of companies, reduced by the loss of $178,206 on sale of CommitmentsM 240 the Corporation's holdings in Kilombero Sugar Com- 240 pany. In the previous fiscal year, IFC had net profits on sales of its holdings of $546,650, approximately 210 offset by a loss resulting from currency devaluations. Total 180 Co mmitments 150 120 90 Commitments Less Sales 60 of Commitments 30 0 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 Fiscal Years (Ut Sales to fira,-cial institutions and other private investors. 16 Administration and Membership Mr. Eugene H. Rotberg became Treasurer of IFC members are: Dr. Hermann J. Abs, Chairman of the on January 1, 1969, at the same time as he became Supervisory Board of the Deutsche Bank, A.G., Frank- Treasurer of the World Bank. furt; Viscount Harcourt, Managing Director, Morgan As from May 1, 1969, certain functions of the Grenfell & Company Limited, London; Dr. Raffaele Treasurer's Department were transferred to a newly Mattioli, Chairman, Banca Commerciale Italiana, established Controller's Department. Mr. Francis R. Milan; Mr. Andre Meyer, Senior Partner, Lazard Poore was appointed Controller of the World Bank Freres & Company, New York; and Baron Guy de and IFC, on June 11, 1969. Rothschild, Partner, de Rothschild Freres, Paris. Mr. John H. Adler was appointed Director of the At the end of Fiscal 1969, IFC had a regular staff of Programming and Budgeting Department, serving 132 including nationals of 30 countries. Of these, both the World Bank and IFC. 71 were professionals and 61 were in the general Mr. Henry Koch was promoted to Director of Par- service category. In addition, IFC shares service de- ticipations and Portfolio Sales. partments of the World Bank. Mr. Augusto Guillermo Arango joined the Board of Directors of Ecuatoriana de Desarrollo, S.A. (Com- pania Financiera), of Ecuador. Membersip Mr. Nelson Schaenen was nominated by IFC to the Board of the National Investment Bank for Industrial Five countries joined IFC during the course of the Development, S.A., of Greece, and Mr. Ali Akbar year, raising total membership to 91 countries. Yugo- Khosropur was nominated by IFC to the Board of slavia became a member in July, with a subscription Soci6te Nationale d'lnvestissement, of Tunisia, and of $591,000. In August, Uruguay joined, with a sub- to the Board of Banque Nationale pour le Developpe- scription of $155,000. Singapore and Mauritius be- ment Economique, of Morocco, replacing Mr. Esgo came members in September, with subscriptions of T. Kuiper, who resigned. $177,000 and $95,000, respectively. The Republic of The Development Finance Companies Department China, with a subscription of $4,154,000, became the was transferred from IFC to the World Bank. 91st member in January. IFC's paid-in share capital IFC's international advisory panel met with the at June 30, 1969 stood at $106,540,000. During the Corporation's officers and management on October year, Cambodia and Swaziland applied for member- 8, 1968 for a discussion of IFC's activities. The panel ship in IFC. 17 Commitments Fiscal 1969 Loan Equity Total Argentina Dalmine Siderca S.A. (Steel products) Standby Commitment ....................................... $ 3,000,000 $ - $ 3,000,000 Editorial Codex Sociedad An6nima .5,000,000 2,000,000 7,000,000 (Printing and publishing) Brazil Papel e Celulose Catarinese S.A .1,059,000 - 1,059,000 (Pulp and paper) Petroquimica Uniao S.A .5,500,000 2,880,000 8,380,000 (Petrochemicals) Colombia Compania Colombiana de Tejidos, S.A .- 81,647 81,647 (Textiles) Compania de Desarrollo de Hoteles y Turismo Limitada-Hoturismo. . - 5,935 5,935 (Tourism) Corporaci6n Financiera del Norte .- 432,028 432,028 (Industrial financing) Corporaci6n Financiera del Valle .- 432,028 432,028 (Industrial financing) Ecuador Ecuatoriana de Desarrollo, S.A. (Compania Financiera) ............. - 251,371 251,371 (Industrial financing) El Salvador Hoteles de Centro America Sociedad An6nima .600,000 333,400 933,400 (Tourism) Honduras Compania Pino Celulosa de Centro America, S.A .- 37,500 37,500 (Lumber, pulp and paper) India Zuari Agro Chemicals Limited .................................. 12,150,000 3,790,000 15,940,000 (Fertilizer) Iran Sherkate Sahami Navard va Luleh Ahwaz .3,000,000 873,980 3,873,980 (Steel products) Jamaica Pegasus Hotels of Jamaica Limited .............................. 2,180,000 733,000 2,913,000 (Tourism) Korea Honam Silk Industry Company .1,400,000 307,500 1,707,500 (Silk) Malaysia Malayawata Steel, Berhad ...................................... - 230,767 230,767 (Steel) Pakistan Dawood Hercules Chemicals Limited .1,000,000 2,919,523 3,919,523 (Fertilizer) Karnaphuli Paper Mills Limited .5,600,000 630,001 6,230,001 (Pulp and paper) Pakistan Industrial Credit and Investment Corporation Limited - 36,846 36,846 (Industrial financing) Thailand Siam Cement Group Companies .18,000,000 4,081,649 22,081,649 (Construction materials) Tunisia Compagnie Financiere et Touristique, S.A .8,000,000 1,904,762 9,904,762 (Tourism) Turkey Sentetik Iplik Fabrikalari, A.S ......................... ... 1,500,000 428,333 1,928,333 (Texti les) Turkiye Sinai Kalkinma Bankasi, A.S .- 417,222 417,222 (Industrial financing) Venezuela Protinal C.A. (Concentrated animal feeds) Underwriting Commitment .2,079,178 - 2,079,178 18 TOTALS .................................................. $70,068,178 $22,807,492 $92,875,670 The Year's Principal Investments ARGENTI NA $3,000,000-Dalmine Siderca S.A. IFC's investment in Dalmine Siderca S.A. had the The IFC standby loan covers the second of two dual objectives of helping a leading Argentine pri- 1,050 million peso ($3 million equivalent) issues of vate steel company raise $6 million equivalent in Special Preferred Shares of Dalmine Siderca, with new funds and assisting development of Argentina's secondary offerings to the public. The two issues are capital market. the first sizable offering of an industrial security in The IFC commitment to Dalmine Siderca's financ- Argentina in over two decades and are intended to ing was a $3 million standby loan with a stock option test the absorptive capacity of the capital market, feature. Seven North American and European finan- and develop a position in the market for Dalmine cial institutions participated in the IFC commitment, Siderca. taking up more than two-thirds of its commitment. The company is the only Argentine producer of They are Philadelphia International Investment Cor- seamless steel pipe. Its annual capacity of 140,000 poration, an affiliate of Philadelphia National Bank; metric tons is the second largest in Latin America. Banque Francaise et Italienne pour l'Amerique du Part of the funds raised will be used for the addition Sud, France, through an affiliate, Compania Finan- of a 50-ton electric arc furnace which will increase ciera y Comercial "Panameris" S.A.; Handelsfinanz, steel ingot production to 300,000 metric tons a year. A.G. of the Banca Commerciale Italiana Group, Italy; The balance will be used for working capital. Istituto Mobiliare Italiano, Italy; The Royal Bank of The company is an important supplier of pipe to Canada; Banca Nazionale del Lavoro, Italy, through the Argentine petroleum industry. It is also active in a subsidiary, Banca Nazionale del Lavoro Holding, the export market with pipe exports increasing from S.A.; and Banco Ambrosiana, Italy, through an affili- 24,000 metric tons in 1967 to 42,000 metric tons ate, Ultrafin, S.A. in 1968. 19 $7,000,000-Editorial Codex Sociedad guese speaking countries-partly through large-scale An6nima introduction of computerized marketing techniques and partly on intensification of traditional selling The Corporation's first commitment in the print- methods. ing and publishing field was made during Fiscal 1969 Nine North American and European financial in- with a $7 million equivalent investment in a leading stitutions are participating in the IFC commitment Latin American publisher of educational and cul- to the Editorial Codex project. They include: Ba- tural books and magazines, Editorial Codex Sociedad merical International Financial Corporation, invest- An6nima of Buenos Aires. ment subsidiary of the Bank of America N.T. & S.A., The company, established a quarter of a century San Francisco; Handelsfinanz A.G. of Switzerland, a ago, is owned by Argentines. It produces a wide vari- member of the Banca Commerciale Italiana Group, ety of books and magazines on art, history, natural Italy; Girard International Investment Corporation, sciences, technology, food and the home, as well as a subsidiary of Girard Trust Bank of Philadelphia; textbooks, encyclopedias and dictionaries. Editorial Provident International Corporation, a subsidiary of Codex has more than 3,600 full-time and 1,950 part- Provident National Bank, Philadelphia; Allied Bank time employees. Its export sales in 1968 were ap- International, New York, overseas investment affiliate proximately $6 million out of total sales of $17 of a group of United States banks; Berliner Handels- million. Gesellschaft, Germany; Dresdner Bank, A.G. and its Equity investors in Editorial Codex are IFC, $2 mil- subsidiary, Deutsch-Sudamerikanische Bank Aktien- lion, and private investors, $2 million. IFC is also gesellschaft, Germany; and Banque Francaise du making a $5 million loan to the company towards Commerce Exterieur, France. the total loan requirements of $17.1 million equiva- lent. The rest is being met by suppliers' and con- struction credits of $6.5 million equivalent and The financial plan was as follows: Argentine sources, including Banco de Galicia, (pesos million) $900,000 equivalent. Share Capital Proceeds from sales of $1.2 million equivalent of International Finance Corporation . . 700 existing assets that will not be required after the Existing shareholders .............. 700 1,400 expansion and consolidation, plus cash generation of Loan Capital $3.4 million equivalent, complete the financing. Suppliers' and construction credits. . 2,275 Approximately $11.2 million equivalent of the new International Finance Corporation . . 1,750 funds will be used to enlarge and integrate the com- Argentine banks .................. 1,960 pany's printing, binding, storage and shipping fa- -including Banco de Galicia cilities and consolidate them at a single plant at 315 million pesos _____ 5,985 Martinez, on the outskirts of Buenos Aires. The bal- Cash Generation .................. 1,190 ance is to be used for working capital, principally to Sales of Existing Assets ............. 420 support expansion of sales in the Spanish and Portu- TOTAL ........................ 8,995 .4 /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ a |~ ~ ~ ~ ~ ~ ~ ~ ~~~~a .I IS NW. s c g et aa /4 BRAZIL $1,059,000-Papel e Celulose tion and overrun costs stemming principally from the Catarinense S.A. effects of currency devaluation. The new mill, located in the State of Santa Cata- rina where economic progress has lagged in com- A second investment in Papel e Celulose Catari- parison with some other Brazilian states, has a nense S.A. was made by IFC as part of $6.75 million capacity of 57,000 metric tons of output per year. At new financing for the kraft pulp and paper project full production it is expected to provide jobs for in southern Brazil. The Corporation agreed to take 1,600 workers. It will provide further economic bene- $1,059,000 of a $3 million equivalent convertible fit by making use of local raw materials. debenture issue, while the Klabin Group, a leading IFC's initial investment in Catarinense was made Brazilian industrial organization which is sponsoring in 1966. At that time, the Corporation committed the $33.75 million project, took the balance of the approximately $6.1 million and ADELA participated convertible debenture issue, in association with the in the commitment in the amount of $1.1 million. Monteiro Aranha Group. ADELA Investment Com- The financial plan was as follows: pany, S.A. has taken a $370,650 participation in the (cruzeiros thousand) IFC commitment. Loan Capital Banco Nacional do Desenvolvimento Banco Nacional do Desenvolvimento Economico, Economico .......................... 11,055.0 Brazil's national development bank, made a new loan Klabin and Monteiro Aranha Groups ........ 7,804.8 that will provide $2.75 million equivalent of the sup- International Finance Corporation .......... 4,257.2 plementary financing, which is to cover working Sponsors-short-term funds ............... 4,020.0 capital requirements during the first year of opera- TOTAL ...................... .... 27,137.0 $8,380,000-Petroquimica Uniao S.A. troleo Uniao, S.A., a privately owned and operated refinery, in which the Soares Sampaio Group has a IFC supported a major addition to Brazil's petro- major interest; Companhia Sao Fernando de Ad- chemical industry-expected to lay the basis for a ministracao e Participacoes, holding and administra- series of further additions- in committing $8.38 tion company of the Moreira Salles Group, and Ad- million to the financing of Petroqufmica Uniao S.A., ministracao e Participacoes Cotil II Limitada, holding a new $61.5 million project at Capuava, near Sao and administration company of the Igel and Mon- Paulo, for cracking naphtha. The IFC investment con- teiro Aranha Groups. sists of $2.4 million equivalent in equity, a $5 million Five institutions participated in the IFC commit- loan, and a $980,000 contingency commitment. ment: Bamerical International Financial Corporation, Petroquimica will be one of the largest private a subsidiary of Bank of America N.T. & S.A., San enterprise ventures in Brazil. It is scheduled for com- Francisco; Provident international Corporation, a pletion in early 1972 and will use naphtha to pro- subsidiary of Provident National Bank, Philadelphia; duce, primarily, ethylene, benzene and propylene, First National City Bank and its subsidiary, First Na- and smaller quantities of butadiene, toluene and aro- tional City Overseas Investment Corporation, New matic oils. Market developments in Brazil since York; and Banque Nationale de Paris, France. Petroquimica was established have been such that A consortium of French banks is supplying the expansion of the project, planned for implementa- bulk of the loan capital and a Brazilian bank group tion at a later date, is now likely to take place sooner is providing a cruzeiro working capital loan. than estimated. The financial plan was as follows: Petroquimica will permit the establishment or ex- Share Capital (cruzeiros million) pansion of a number of other companies utilizing Refinaria e Exploracao de Petr6leo Petroquimica's products to manufacture a wide vari- Uniao, S.A . ....................... 24.1 ety of plastics, synthetic textiles, solvents, pesticides Petrobr8s Quimica, S.A . ............. 24.1 and detergents for the Brazilian market. Petroquimica Companhia Sao Fernando de is thus expected to spur some $300 million new in- Administracao e Participacoes ....... 24.1 vestment in Brazil over the next decade and make Administracao e Participacoes Cotil li possible major foreign exchange savings. Limitada ......................... 14.5 Petroquimica's ownership is entirely Brazilian with International Finance Corporation .... 9.6 96.4 the exception of IFC. It includes Petrobras Quimica, Loan Capital S.A., a wholly-owned subsidiary of the Brazilian state French Bank Consortium ............ 118.6 oil company, Petrobras, which invested in a private International Finance Corporation .... 20.1 enterprise venture on a minority basis for the first Brazilian Bank Group.12.1 150.8 time in Petroquimica; Refinaria e Exploracao de Pe- TOTAL .247.2 Solution tanks (foreground) and precipitation 21 towers (background) of the Empresa Minera de Mantos Blancos, S.A., Chile, copper processing plant. IFC helped finance the project and later made an additional commitment for expansion. EL SALVADOR $933,400-Hoteles de Centro America Sociedad An6nima IFC joined with a Salvadoran real estate develop- ment firm, a United States hotel company, and a number of Central American investors to establish a new company that will build a $3.7 million equiva- lent, 224 room, tourist and convention hotel in San Salvador. The new hotel, to be called the Camino Real, is being built on a five acre site in the prime Miramonte residential area of San Salvador and is scheduled to open in the first half of 1971. It will be the largest hotel in San Salvador and will increase first class accommodations in the city by 60 per cent. The Camino Real will employ a staff of 270, almost all of whom will be Salvadorans, and is expected to con- tribute to the economic development of El Salvador /; by generating an estimated $1.2 million in foreign exchange annually. The Camino Real is one of a net- work of hotels planned for principal Central Ameri- can cities with the objective of spurring tourism throughout the Central American Common Market area, and Panama. In addition to IFC, which made a $933,400 equiva- lent loan, equity and cost overrun commitment to the project, the principal sponsors of Hoteles de Centro America Sociedad An6nima are Financiera Roble, S.A. of San Salvador and Western Interna- tional Hotels Company (Western) of Seattle. The two firms are jointly responsible for developing plans for the new hotel and for coordinating and implement- ing the project. Western, which already owns or manages some 65 hotels in a number of countries in- cluding Ecuador, Guatemala, Mexico and Venezuela, is also responsible for the commercial management of the Camino Real and for training personnel. Extension of Manila Electric Company's transmission The Banco Central de Reserva de El Salvador, and distribution system was assisted by a through its agent Financiera de Desarrollo y Inver- $12 million IFC equity and loan commitment si6n, S.A., is making a loan to the project covering to the Philippine utility. more than one-third of the total cost. Suppliers' credits will complete the financing. The financial plan was as follows: (colones million) Share Capital Financiera Roble, S . ........ ...... 2.05 Central American private investors .. . .70 Western International Hotels Company .50 International Finance Corporation ... .50 3.75 Loan Capital Banco Central de Reserva de El Salvador (through Financiera de Desarrollo y Inversi6n, S.A.) ........ 3.40 International Finance Corporation .... 1.50 Suppliers' credits ......... ......... .60 5.50 TOTAL . .9.25 22 INDIA $15,940,000-Zuari Agro Chemicals million equivalent of Zuari's common shares, and Limited $5.5 million equivalent of preferred shares. The share offering, one of the largest to be made in India, is IFC made its largest single commitment in India expected to be underwritten by a consortium of in March 1969, when it joined private investors in the Indian financial institutions. United States and India to establish a fertilizer plant A syndicate of five United States institutions organ- in Goa, southwest India. The plant, estimated to cost ized under the leadership of the Bank of America will in excess of $70 million, is the second fertilizer proj- provide $12 million of loan funds to the project. In ect in India to receive loan and equity funds from IFC. addition to the Bank of America, this group includes The project is expected to contribute to India's the Connecticut General Life Insurance Company, of efforts to become self-sufficient in food. It will save Hartford, Connecticut; The First National Bank of foreign exchange for India by replacing part of the Saint Paul, of St. Paul, Minnesota; the Northwestern large volume of fertilizer now imported annually. National Life Insurance Company, of Minneapolis, Using naphtha as raw material, the plant will have an Minnesota; and The First National Bank of Chicago. annual output of 340,000 tons of urea, and will have A large portion of the financing provided by facilities to produce 150,000 tons of compound United States investors is being guaranteed by the fertilizers. United States Agency for International Development Zuari Agro Chemicals Limited, the new company (AID). In addition, AID has made available to the formed to build and operate the plant and market its project approximately $29.8 million of rupee loan output, is sponsored by the United States Steel Cor- funds from United States Government-owned bal- poration, of Pittsburgh, Pennsylvania, and the Birla ances in India. Group, one of the largest industrial groups in India. The sponsors are supplying over 50 per cent of the The fiancial plan was as follows: new company's common share capital, which totals $16.6 million equivalent. United States Steel will pro- (rupees million) vide technical assistance for engineering, production Share Capital and marketing operations, and Birla will provide Common Shares: assistance in marketing and sales arrangements. United States Steel Corporation ..... 45.0 Public share offering in India Zuari plans to sell most of its output in southern (to be underwritten by and western India, particularly in the territory of Goa, Indian financial institutions) ........ 25.9 and in the States of Mysore, Andhra Pradesh and International Finance Corporation ... 23.9 Maharashtra. A recent market study indicated a good Birla Group ....................... 17.8 demand for the company's production in its principal Bank of America, New York ......... 7.5 sales area. Armour and Company ............. 2.3 First Chicago International IFC's commitment of up to $15.94 million provides Corporation ..................... 1.9 124.3 the largest single portion of foreign exchange funds Preferred Shares: required by the project. The IFC investment consists Public share offering in India of a common share subscription of $3.19 million (to be underwritten by equivalent, a loan of $12.15 million, and a contingent Indian financial institutions) ....... 41.2 commitment for a further $600,000. Two North American institutions participated in Subordinated Shareholder Loans the IFC commitment. They were First National City United States Steel Corporation ...... 7.5 Bank, New York, and Vantage Ten Ninety Fund, Inc., Birla Group ....................... 2.3 9.8 Washington, D.C. loan Capital Subscriptions to Zuari's common shares totaling Senior Debt: $1.55 million equivalent are to be made by three United States Agency for United States private investors-the Bank of America, International Development ........ 148.1 New York (Edge Act subsidiary of the Bank of Amer- International Finance Corporation ... 91.1 ica N.T. & S.A.); Armour and Company, of Chicago; Bank of America Syndicate ......900... 9 329.2 and the First Chicago International Corporation, of Subordinated Debt: Chicago. United States Agency for To complete the equity financing for the new com- International Development 75.3 pany, a public offering will be made in India of $3.45 TOTAL ..579.8 23 IRAN $3,873,980-Sherkate Sahami Navard and three Iranian Government agencies-the Plan va Luleh Ahwaz Organization, the Social Service Organization, and the Iran Insurance Company. The shares of the new IFC's first major commitment in Iran, announced company will be listed on the newly formed Teheran in February 1969, will help provide Iran with its first Stock Exchange, giving Iranians an opportunity to facility for making hot-rolled steel strip. invest in an Iranian industry. The plant, to cost $18 million equivalent, is being Loan financing from IMDBI and IFC was supple- built near the town of Ahwaz, in southwestern Iran, mented by credits from United Kingdom machinery in furtherance of the Iranian Government's policy of suppliers. The Ahwaz project is IFC's first joint in- encouraging establishment of industrial centers away vestment with IMDBI, which brought together the from the Teheran area. It will employ some 300 private sponsors. Iranians. The financial plan was as follows: The plant will be able to produce, from billets, ShareCapital (rials million) 140,000 metric tons of steel strip and 40,000 metric Hedayat/Laleh Group 230 tons of pipe a year, meeting most needs of Iran's Plan Organization .80 construction and light metal manufacturing indus- Industrial and Mining Development tries. The facilities being constructed by Sherkate Bank of Iran ........................ 70 Sahami Navard va Luleh Ahwaz (Ahwaz Rolling and International Finance Corporation ...... 60 Pipe Mills Company) include a rolling mill for the Social Service Organization ............ 50 production of hot-rolled steel strip and a pipe mill Iranian Investment Corporation ........ 40 which will make a part of the strip into black and Iran Insurance Company ........ ...... 30 560 galvanized pipe. Loan Capital The project is sponsored by the Hedayat/Laleh Industrial and Mining Development Group, comprising individual investors engaged Bank of Iran ........................ 300 mainly in the construction business in Iran, and two Suppliers' credits .................... 275 Iranian financial institutions-Bank Kar and Kar International Finance Corporation ...... 225 800 Insurance. TOTAL . .1,360 IFC's investment includes a loan of $3 million and the purchase of 6,000 shares of common stock of par value 10,000 rials each (equivalent to about $792,000). IFC has agreed to a contingent commit- ment of up to 6 million rials (equivalent to approxi- Fertilizer for India's program to attain self-sufficiency mately $79,000) to finance, together with other major in food will be produced at the new Indian shareholders, overruns up to $580,858 above antici- Explosives Limited plant which IFC helped finance. pated costs. Approximately $1.3 million, or a third, of the IFC commitment was taken up by seven participating financial institutions. These institutions were the Bank of America N.T. & S.A., London; Commerzbank, A.G., of Germany; Handelsfinanz, A.G., of Switzerland, a member of the Banca Commerciale Italiana Group; Banca Nazionale del Lavoro, of Italy, through a sub- sidiary, Banca Nazionale del Lavoro Holding, S.A.; The Chartered Bank of London, United Kingdom; Banque Francaise du Commerce Exterieur, of France; and Centrale Credit, A.G., of Germany, an affiliate of Bank of America. Besides the sponsoring Hedayat/Laleh Group and IFC, the other shareholders in Ahwaz Rolling and Pipe Mills Company are the Industrial and Mining Development Bank of Iran (IMDBI), a private devel- opment bank associated with the World Bank Group; the Iranian Investment Corporation, which wvasP formed in 1966 by members of the Iranian Oil Con- sortium to promote private sector industrial projects; . i . . 24 JAMAICA $2,913,000-Pegasus Hotels of BODC, besides making its own equity investment Jamaica Limited in the project, participated in IFC's commitment, as did several other financial institutions. These in- cluded The Citizens and Southern National Bank of Atlanta, Georgia, through a subsidiary, Citizens and expected to result from the Jamaica Pegasus, a new, Southern International Corporation; Banca Nazionale 350 room Kingston convention and tourist hotel for del Lavoro Holding, S.A., a subsidiary of Banca Nazi- which IFC supplied approximately one-third of the onale del Lavoro, of Italy; The Royal Bank of Canada financing. International, Limited of Nassau, the Bahamas; and The $8.5 million project is expected to give re- Internationale Finanzierungs Aktiengesellschaft, of newed impetus to the growth of Jamaica's tourist Switzerland. industry-by helping growth of accommodations to A substantial portion of the equity was made avail- match growth of demand-and to help Kingston able to Jamaican private investors in April 1969 realize its potential as a center for business meetings. through an offering underwritten by the Jamaican The Jamaica Pegasus will be one of the island na- Development Finance Corporation. The issue was tion's largest hotels and provide facilities now lack- quickly oversubscribed. ing in Kingston for conventions. It will create more than 500 jobs for a two-year period during construc- Barclays D.C.O. of London made a loan to the tion and generate about $2 million in purchases of project. Suppliers' credits are providing additional local raw materials. When the hotel is in operation long-term financing. it will provide some 450 jobs and bring an estimated The financial plan was as follows: $3 million in foreign exchange earnings into the country yearly by 1972. Share Capital (Jamaican pounds) The IFC investment was made in a new company, BOAC Associated Companies Pegasus Hotels of Jamaica Limited. It consists of Limited i .3500,000 $620,000 equivalent in equity, a loan of $2.18 million, International Finance and a contingency commitment of up to $113,000. Corporation ................ 258,333 Sponsors of the new hotel, in addition to IFC, are Forte's (Holdings) Limited ..... 250,000 BOAC Associated Companies Limited (BOAC A.C.), Barclays Overseas Development a subsidiary of British Overseas Airways Corporation; Corporation ................ 100,000 1,408,333 Forte's (Holdings) Limited (FHL), a leading British Loan Capital hotel and restaurant organization; and Barclays Over- Barclays DCO .C.............. 1,000,000 seas Development Corporation Limited (BODC) of International Finance London. BOAC A.C. and FHL are providing technical Corporation ................ 908,333 and managerial leadership as well as participating in Suppliers' credits ............. 250,000 2,158,333 the financing. TOTAL . .3,566,666 KOREA $1,707,500-Honam Silk Industry sisted consist of integrated mulberry plantations to Company be developed by farmers on their own land, and silk- worm production, both to receive financial and tech- IFC's first investment in the silk industry, an- nical assistance from the Korean Government and nounced in June 1969, was made in Korea, where from the company, plus silk yarn filature, a factory skill in sericulture-the production of raw silk by operation. The project will provide seasonal employ- raising silkworms-is widespread and traditional. ment for 7,500 Korean farm households, create 800 Honam Silk Industry Company will build a silk new factory jobs, and earn for Korea $5 million a mill to produce 350 metric tons of raw silk annually, year in foreign exchange. It will help Korean farmers 90 per cent to be exported, and 10 per cent to be develop new sources of cash income on land un- consumed locally. A distinctive feature of the project, suited for traditional crops. The mulberry plantations to be established at Kimje-Gun, Cholla-Pukdo in will cover some 3,000 hectares (7,410 acres) of land. southwest Korea, is that it includes both agricultural The new company is sponsored jointly by Mr. and industrial financing. The operations to be as- Pan Nam Koh, a Korean businessman, and the 25 Agricultural and Fishery Development Corporation (AFDC), of Korea, owned by the Korean Government. The cost of the project up to 1974, when it is ex- pected to become financially self-sustaining, is esti- mated at $5.8 million. The funds to be provided will be used 1) to build and operate a 350 tons per year silk filature, and 2) to assist Korean farmers, by loans and grants, in developing mulberry plantations and in purchasing silkworm growing equipment. IFC is providing $1.7 million, or about 30 per cent of the $5.8 million project cost. IFC's commitment consists of a subscription to 86,100 common shares of the company, amounting to approximately $307,500 equivalent, and a loan of $1.4 million. The Agricultural and Fishery Development Cor- poration will receive loans of $1 million each from the Bank of America and Manufacturers Hanover. Trust Company. AFDC will re-invest these amounts in Honam Silk. In addition to Honam Silk's financial assistance of $3.2 million equivalent to farmers, included under project costs, the Korean Government is providing approximately $4 million equivalent in loans and grants to farmers. Participating farmers will also make a small cash contribution, to be used mainly for the purchase of mulberry seedlings, fertilizers, and co- coon raising equipment. The average cash contribu- tion per household is estimated at $110 equivalent, spread over a period of about five years. The financial plan was as follows: (won million) Share Capital Pan Nam Koh ...........143.5 Agricultural and Fishery Development Corporation .....114.8 International Finance Corporation .. 86.1 344.4 Loan Capital Agricultural and Fishery Development Corporation 420.0 International Finance Corporation ..392.0 812.0 Cash Generation ...... .....432.6 Repayment of Farmers' Loans .....47.9 TOTAL ....... .......1,636.9 Fiber processing at the Enka de Colombia, S.A. nylon and polyester manufacturing plant at Girardota. IFC joined Dutch and Colombian interests in this project. PAKISTAN $3,919,523-Dawood Hercules to private Pakistani investors. This share offering will Chemicals Limited be underwritten by the Dawood Industrial Group. A foreign currency loan of $32 million has been The World Bank and IFC agreed in July 1968 to made by the World Bank. The United States Agency provide up to $36 million to help finance a $78 mil- for International Development provided a $14.2 mil- lion fertilizer plant in Pakistan, a project expected to lion loan, in local currency. In line with a general contribute substantially to Pakistan's drive to achieve policy of encouraging high priority projects, the self-sufficiency in food in the 1970s. IFC's commit- Government of Pakistan has agreed to defer, against ment to Dawood Hercules Chemicals Limited, the debentures, up to $2.8 million equivalent in customs new company formed to build and operate the plant, duties on equipment and materials imported for the is the Corporation's first investment in a fertilizer project. project in Pakistan. The financial plan was as follows: The plant is being built near Lahore, in the heart (rupees million) of West Pakistan's principal agricultural region. Its Share Capital establishment comes at a time when the new high- Dawood Industrial Group ......... 55.6 yielding varieties of wheat and rice are being intro- Hercules Incorporated ....... : .... 55.6 duced on a large scale in Pakistan. Pakistan's plans International Finance Corporation .. 13.9 for rapid expansion of its food grain production are Public share offering in Pakistan ... . 13.9 139.0 based upon the use of these new varieties, particu- Loan Capital larly the Mexican wheat variety, which require inten- World Bank, foreign exchange sive fertilizer application. equivalent to approximately ....... 152.3 United States Agency for The plant will produce 345,000 tons of urea annu- International Development ........ 67.6 ally and will employ some 600 workers. The plant's Customs debentures ............... 13.3 233.2 output will replace imports, and thus will result in TOTAL.372.2 substantial foreign exchange savings by Pakistan. The use of locally available natural gas in production of the fertilizer will add to these savings. Expansion of $6,230,001-Karnaphuli Paper Mills the natural gas pipeline system in the northern part Limited of West Pakistan, for which the World Bank has made a loan, is geared to the construction schedule IFC's first investment in East Pakistan's industrial of the Dawood Hercules plant. expansion, announced in January 1969, was in the To ensure that investment in fertilizers will be at- modernization and expansion program of Karna- tractive to Pakistani farmers, the Government of phuli Paper Mills Limited, Pakistan's leading paper Pakistan is implementing coordinated programs to manufacturer. The IFC commitment provided the make additional credit available for the purchase of largest share of the foreign exchange funds required fertilizers, seeds and insecticides; provide more by the project. water for irrigation purposes; and maintain produc- The $17 million modernization and expansion pro- tion incentives by stabilizing prices of food grains. gram will increase Karnaphuli's paper making ca- The Government has initiated construction of addi- pacity by 17,000 tons a year-11,000 tons of kraft tional storage facilities for fertilizer stocks, and Paki- paper and paperboard, to be used in the manufac- stan's private sector is now engaged in setting up ture of bags, multiwall sacks and corrugated boxes, efficient distribution arrangements for fertilizers, and 6,000 tons of printing and writing papers. By 1971, when the program is completed, Karnaphuli The project IS sponsored by the Dawood Industrial will have an annual capacity of 50,000 tons of paper, Group, of Pakistan, and Hercules Incorporated, a will be th major suppier of krfto paper, t the United States chemical company. The sponsors will and will be the major supplier of kraft paper to the United statschibemical0p cany. ofthe sponsos will Pakistan market. Lower operating costs and improved each susre ,tol4 per cent uof sthe mil- product quality will also enable Karnaphuli to help Liionsaed caia fDwo eclsCeias meet increasing demand in Pakistan for printing and writing papers. The company at present is the only IFC committed up to $3.9 million, of which $2.9 major producer of groundwood-free printing and million is a subscription to share capital and up to writing paper in Pakistan. $1 million is a contingency commitment. IFC's equity Since the additional paper to be produced by investment accounted for about 10 per cent of the Karnaphuli will replace imports, the project is ex- new company's share capital. pected to save Pakistan over $2 million a year in A further 10 per cent of the capital will be offered foreign exchange expenditures. 27 f:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ \ Including the Karnaphuli project, total paper National & Grindlays Bank, Limited, of the United making capacity financed by IFC in Pakistan amounts Kingdom; Banca Nazionale del Lavoro, of Italy, to 72,000 tons annually. through a subsidiary, Banca Nazionale del Lavoro The project will help develop East Pakistan's forest Holding, S.A.; and Banque Francaise du Commerce reserves. Karnaphuli produces kraft paper from bam- Exterieur, of France. boo and hardwoods grown in East Pakistan and, to The balance of Karnaphuli's financing consists of obtain more of these raw materials, it plans intensive a foreign currency loan of $3.37 million from the development of bamboo forests leased from the East Pakistan Industrial Credit and Investment Corpora- Pakistan Government, and establishment of forest tion Limited (PICIC), and a $910,000 local currency plantations on idle hilly lands near the mill site, to loan from Dawood Industries, Limited. IFC is a sub- be leased from the Government. stantial shareholder in PICIC. The project is sponsored by Dawood Industries Because of the importance of the project to ex- Limited, Karnaphuli's managing agent, which con- pansion of Pakistan's paper industry-resulting in an trols about half of Karnaphuli's share capital. increase in paper making capacity by 17,000 tons a IFC is making a basic commitment of $5.6 million year-the Government of Pakistan has agreed to to Karnaphuli's expansion and modernization pro- defer, against debentures, up to $1.03 million equiva- gram, consisting of a commitment to purchase lent in customs duties on equipment imported for 300,000 ordinary shares of Karnaphuli at par value, the project. amounting to approximately $630,000 equivalent, The financial plan was as follows: and a $5 million loan, with a stock option. In addi- (rupees million) tion to this basic commitment, provision has been Share Capital made by IFC for a contingent loan of $600,000. Par- International Finance Corporation . . 3.00 ticipating in the IFC investment were the First Na- Loan Capital tional City Bank and its overseas investment affiliate, International Finance Corporation . . 23.78 First National City Overseas Investment Corporation, Pakistan Industrial Credit and New York; Bamerical International Financial Corpo- Investment Corporation Limited ... 16.06 ration, the wholly-owned investment subsidiary of Customs debentures .4.91 the Bank of America N.T. & S.A., San Francisco; the Dawood Industries Limited.4.34 49.09 Kuwait Foreign Trading, Contracting & Investment Cash Generation .28.00 Company (S.A.K.); Commerzbank, A.G., of Germany; TOTAL .80.09 28 A technician prepares medicine in a sterilized chamber at Laboratoire des Produits Pharmaceutiques de I'Afrique du Nord. The company was modernized and expanded with the assistance of Banque Nationale pour le Developpement Economique, a Moroccan development finance company in which IFC has invested. THAILAND $22,081,649-Siam Cement Group Aggregate Company Limited, and Siam Iron and Steel Companies Company Limited. All member companies of the Group are individually as well as jointly responsible IFC's largest investment to date, a $22.1 million for repayment of the loan. commitment to help finance a $60 million expansion With its equity investment, IFC acquired approxi- of Thailand's construction materials industry, was mately 62/3 per cent of the shares of each of five announced in April 1969. The construction materials members of the Group: Siam Cement Company industry is a key factor in Thailand's rapid industrial Limited, Siam Fibre-Cement Company Limited, Con- expansion, which has averaged about 15 per cent a crete Products and Aggregate Company Limited, year over the past several years. Construction Materials Marketing Company Limited, IFC's transaction was with the six-company Siam and the Siam Iron and Steel Company Limited. In Cement Group, Thailand's biggest building materials addition to these five companies, the Group includes producer, and one of the largest cement manufac- Siam Industrial Credit Company Limited. turers in Asia. It involved simultaneous financing of IFC and participants in its investments received op- five separate but interrelated companies of the .. tions for additional shares in two companies In Group, which are carrying out four industrial expan- the Group. sion programs. Participations by 19 banks and finan- cial institutions in North America, Europe and Asia The institutions participating in the IFC commit- in the IFC investment totaled $14.9 million, or more ment are: than two-thirds of the IFC commitment. This ex- The Bank of America Group, consisting of the ceeded considerably participations in any previous Bank of America, New York, Bamerical Interna- IFC investment. tional Financial Corporation, San Francisco, and The Siam Cement Group's expansion program, the World Banking Corporation Limited, in Nassau, scheduled to be completed by the end of 1971, in- the Bahamas; cludes the following new projects: 1) The Siam Manufacturers Hanover Trust Company, of New Cement Company Limited-a 1,500 metric tons per York, and its affiliates, Manufacturers Hanover In- day cement factory to serve markets in northeastThai- ternational Finance Corporation, and Manufac- land; 2) The Siam Fibre-Cement Company Limited- turers Hanover International Banking Corporation; a 58,000 metric tons per year asbestos sheet plant, Dresdner Bank, A.G., of Germany; expansion of pipe making facilities, and addition of The First National City Bank Group, New York, a line of "Asbestolux" fireproof products; 3) Con- consisting of the First National City Bank Interna- crete Products and Aggregate Company Limited-a tional, the First National City Bank, and the First pipe plant to produce large diameter pipes for drain- National City Overseas Investment Corporation; age and sewage lines, expansion of concrete block- Continental Illinois National Bank and Trust making facilities, and addition of a line to produce Company of Chicago; "Sakrete," a dry ready-mix mortar; and 4) The Siam Irving Trust Company and its affiliate, Irving Iron and Steel Company Limited-a 150,000 metric International Financing Corporation, of Philadel- tons per year rolling mill to produce reinforcing bars, phia; including facilities to produce 80,000 metric tons of Philadelphia International Investment Corpora- billets from domestic and imported scrap, and ex- tion; pansion of existing foundry and refractory plants. Banque de l'Indochine, S.A.; IFC's commitment consists of an $18 million loan, Skandinaviska Banken, of Sweden; and equity investment totaling approximately $4.1 Bank fur Gemeinwirtschaft, A.G., of Gernany; million. The IFC loan is being provided to Siam Ce- Commerzbank, A.G., of Germany; ment Company Limited, the leading member of the Private Investment Corporation for Asia, of Group, which will relend portions of the loan to Japan. three other members of the Group: Siam Fibre- The participations in IFC's commitment to Siam Cement Company Limited, Concrete Products and Cement by the Bank of America Group and by the 29 Manufacturers Hanover Trust Company Group in- volved the iargest participations ever made by a United States group, and the participation by the Dresdner Bank was the second largest participation by a European bank or group. In addition to IFC's investment, funds for the Group's expansion program will come from credits of $14.5 million equivalent from suppliers in Den- mark, Germany, Switzerland and the United King- dom; $13.1 million from cash generation and bank borrowings; and equity investments of $7 million equivalent by the present shareholders in the Group companies. Shares in the Group companies are widely held by the Thai public. The financial plan was as follows: lbaht million) Share Capital Subscriptions by present shareholders ...........148.0 International Finance Corporation subscriptions and share purchases .. 85.2 233.2 Loan Capital International Finance Corporation ... 374.4 V ~~~~~~Suppliers' credits..........300.9 675.3 Cash Generation and Bank Borrowings 278.1 Expenditures already incurred ...... 67.6 TOTAL ....... .......1,254.2 Workers raising one of the new buildings for the - . ~~~~~~~~~~~~~~~. ~~~~~Textiles Fabricato de Nicaragua, S.A. plant in Managua. The project, which IFC helped finance, is expected to benefit both Nicaragua and the other Central American Common Market nations. 30 TUNISIA $9,904,762-Compagnie Financire et A share offering of 200,000 shares to private Tuni- Touristique, S.A. sian investors will be underwritten by a syndicate of Tourlstique, S.Q. Tunisian banks. Other Tunisian investors in the share IFC's commitment to Compagnie Financiere et capital of the new company are Tunisian financial Touristique, S.A., a tourism development and hold- institutions, including local banks and insurance ing company, was the Corporation's first investment companies, and Societe Nationale d'lnvestissement, in a specialized institution to finance and to promote a private development bank in which IFC has a sub- hotel and other tourism projects in a developing stantial shareholding. country on a nationwide scale. The new institution, Foreign investors with wide experience in tourism with initial resources of $39.3 million, will provide are subscribing to shares of the company. These are equity and long-term funds required to establish American Express Company, of the United States; tourism enterprises, chiefly hotels, in Tunisia. Caisse Centrale de Cooperation Iconomique, of Tunisia's tourism industry, bringing in $40 million France; Deutsche Entwicklungsgesellschaft, of Ger- yearly, has replaced phosphate rock exports as the many; Industrial Promotions Services, of Switzerland, largest single earner of foreign exchange. In addition, a member company of the Aga Khan Group; a Scan- it has stimulated the country's building and equip- dinavian group under the leadership of Stockholms ment industry and has created thousands of new Enskilda Bank; Arab African Bank, of the United Arab jobs. At present, some 10,000 employees work in Republic; and Kuwait Foreign Trading, Contracting hotel and other tourism enterprises; in the next four & Investment Company (S.A.K.). years, the tourism sector is expected to provide The project is strongly supported by the Govern- 15,000 new jobs. ment of Tunisia, which will provide the company Tunisia's year-round favorable climate and its with $21.8 million equivalent, in three separate scenic attractions, together with its nearness to Eu- funds: 1) an interest-free advance of $3.8 million, to rope and the relatively moderate level of hotel prices be deemed a quasi-equity fund, and to be at the dis- in resort areas, have brought about a rapid expansion posal of the company during its entire life; 2) a $12 of tourism. From 1964 to 1968, the number of tour- million subordinated loan, and 3) additional loans ists entering Tunisia rose to over 380,000, represent- totaling $6 million. The Government is also making ing an increase of some 226,000, or more than 146 important tax concessions to the company. per cent. Most of these tourists came from France, The financial plan was as follows: Germany, Great Britain, and the Scandinavian coun- (dinars million) tries. The tourist inflow is expected to grow over the Share Capital coming years. To accommodate this increase, addi- Private Tunisian investors ........... 1.0 tional hotel facilities, particularly in the moderately International Finance Corporation ... 1.0 priced tourist-class categories, must be built. Societe Nationale d'Investissement . . 0.825 Generally, Compagnie Financiere et Touristique Tunisian institutionial investors ...... 0.75 will finance and promote three types of operations- American Express Company ......... 0.25 the construction of new hotels, the expansion or Caisse Centrale de Cooperation financial reorganization of existing hotels, and other Economique ..................... 0.25 activities related to the tourism sector, such as trans- Industria Promotions Services . ...... 0.25 portation facilities for tourists. Scandinavian Group ............... 0.175 IFC's commitment includes a subscription to Arab African Bank ................. 0.125 200,000 shares of the new company, amounting to Kuwait Foreign Trading, Contracting just over $1.9 million equivalent, and a loan of $8 and Investment Company (S.A.K.) ... 0.125 5.0 million. IFC's subscription corresponds to 20 per cent Loan Capital of the company's share capital, totaling $9.5 million Tunisian Government- equivalent. Participations in the IFC investment were subordinated loans .6.3 purchased by the Arab African Bank, of the United International Finance Corporation .. 4.2 Arab Republic, and Kuwait Foreign Trading, Con- Tunisian Government-other loans . 3.2 13.7 tracting & Investment Company (S.A.K.), both also Advance from the Tunisian Government 2.0 members of the principal investment group. TOTAL ..20.7 31 TURKEY $1,928,333-Sentetik Iplik Turkiye Sinai Kalkinma Bankasi, A.S. (TSKB), the na- Fabrikalari, A.S. tion's leading private development bank, is providing additional loan financing. TSKB, itself, has received During Fiscal 1969 IFC-for the second time in substantial assistance from the World Bank Group, three years-helped Turkey's leading producer of including, in Fiscal 1969, a World Bank loan of $25 nylon yarn to double its spinning capacity. million and (See Table, Page 18) an IFC equity com- The project will increase the nylon spinning facili- mitment of $417,222. ties of Sentetik Iplik Fabrikalari, A.S. (Sifas) from Sifas was established in 1962 at Bursa, a major tex- 3,675 to 7,875 metric tons a year and will also raise tile center south of Istanbul. The company is 80 per production of nylon chips, the company's raw mate- cent owned by Turkish nationals. Its products are rial, by 80 per cent, from 5,180 to 9,380 metric tons expected to be competitive in the international mar- a year. ket. Last year Sifas instituted an export program The new commitment was IFC's second invest- which it plans to expand, to contribute to Turkey's ment in Sifas. In 1966 the Corporation took part in capacity to earn foreign exchange. financing a $5.9 million project which doubled the The financial plan was as follows: company's spinning capacity at that time, and helped (liras million) finance construction of Sifas' first polymerization Share Capital plant for the production of nylon chips. Existing shareholders .............. 8.945 Total cost of the new expansion will be $6.5 mil- International Finance Corporation .. . 3.855 12.800 lion equivalent, of which IFC is providing $428,333 Loan Capital equivalent in equity and $1.5 million in loan. The International Finance Corporation . . . 13.500 balance of the equity is being supplied by other Sifas Turkiye Sinai Kalkinma Bankasi, A.S.. . 4.050 shareholders and by cash generation. The Turkish Deferment of duties and charges ... 3.908 21.458 Government is assisting the project by deferring cer- Cash Generation .24.338 tain duties and surcharges on imported equipment. TOTAL .58.596 VENEZUELA $2,079,178-Protinal C.A. siones Diversas, C.A.; G. Willson Cook Sucesores, S.A.; Banco Mercantil y Agricola, C.A.; and Bank of IFC entered a new sector of the agribusiness indus- London and South America, Limited. try by making the largest single commitment to the Proceeds of the underwriting are being used for underwriting of a 25 million bolivares ($5.5 million additional working capital; extension of grain storage equivalent) debentures offering by Protinal C.A., silos at Valencia; modernization of incubation facili- Venezuela's leading producer of concentrated animal ties at Valencia and the construction of transit silos feeds. The debentures, part of which are convertible, at Varenca. were the first such security to be marketed in Vene- at Acarigua. zuela, and the issue was the largest public offering Protinal was established in 1944 and is one of of securities of a private industrial firm to be made in Venezuela's biggest private enterprises with more Venezuela. Part of the ten year, 10 per cent issue is than 400 shareholders. The company produces 53 convertible into Protinal stock. different livestock feeds and supplies more than 60 IFC underwrote 9 million bolivares (approximately per cent of the Venezuelan market for these prod- $2 million equivalent) of the issue, as a member of a ucts. It has been an important factor in the develop- syndicate headed by C.A. Venezolana de Desarrollo ment of Venezuelan agriculture by providing farmers (Sociedad Financiera), called Cavendes, a private with products which enable them to carry out im- development finance bank which IFC helped estab- proved agricultural practices and achieve increased lish in 1963. Other underwriters included Pedro yields. The company operates two plants, one in Mendoza Sucesores, C.A.; Banco La Guaira Interna- Valencia and one in Maracaibo, both of which rely cional, C.A.; Empresas Prometedoras, C.A.; Inver- heavily on local sources for raw materials. 32 Appendices Financial Statements A Balance Sheet .. ............................................... 34 B Comparative Statement of Income and Expenses .................. 35 B Comparative Statement of Changes in Reserve Against Losses ................................................ 35 C Statement of Operational Investments and Standby and Underwriting Commitments ................................. 36 D Notes to Financial Statements ................................... 48 Opinion of Independent Auditor .................................. 49 Other Appendices E Statement of Subscriptions to Capital Stock and Voting Power .................................................. 50 F Governors and Alternates ....................................... 51 G Directors and Alternates and their Voting Power ................. 53 H Principal Officers ................................................ 54 33 Balance Sheet Appendix A June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D June30 June30 1969 1968 Assets DUE FROM BANKS .............................................. $ 715,967 $ 884,321 INVESTMENTS Obligations of United States Government and its instrumentalities (At cost or amortized cost) Face amount $27,000,000-1969, $27,300,000-1968 .... ......... $26,085,900 26,336,273 Time deposits maturing within six months-United States dollars 4,000,000 4,500,000 Accrued interest .............................................. 484,279 530,982 30,570,179 31,367,255 EFFECTIVE LOANS AND EQUITY INVESTMENTS HELD BY CORPORATION (At cost) (See Appendix C)-Note B (Including undisbursed balance of $33,500,575-1969, $49,398,568-1968) Loans ........................................................ $93,014,013 104,455,938 Equity ........................................................ 59,677,835 53,384,312 152,691,848 157,840,250 ACCRUED INCOME ON LOANS, EQUITY INVESTMENTS AND UNDERWRITING COMMITMENTS-Note B 1,571,340 1,344,353 RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT .100,000,000 100,000,000 RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS AND EQUITY INVESTMENTS AGREED TO BE SOLD-Note C (Including undisbursed balance of $22,996,218-1969, $8,523,086-1968) .26,783,146 8,930,040 OTHER ASSETS ....176,723 715,386 TOTAL ASSETS $312,509,203 . $301,081,605 Liabilities, Reserve and Capital LIABILITIES Accounts payable and other liabilities .$ 822,453 $ 264,585 Undisbursed balance of effective loans and equity investment agreements (See Appendix C) Held by Corporation ........................................ $33,500,575 49,398,568 Agreed to be sold .......................................... 22,996,218 8,523,086 56,496,793 57,921,654 Loan from International Bank for Reconstruction and Development (Not yet drawn) ..100,000,000 100,000,000 RESERVE AGAINST LOSSES (See Appendix B)-Note D 48,614,957 I 40,936,366 CAPITAL Capital stock Authorized 110,000 shares of $1,000 par value each Subscribed 106,540 shares-1969, 101,368 shares-1968 106,540,000 101,368,000 Payment on account of pending subscription ................. 35,000 591,000 OUTSTANDING UNDERWRITING COMMITMENTS Nil-1969, $1,395,608-1968 .......... TOTAL LIABILITIES, RESERVE AND CAPITAL $312,509,203 $301,081,605 34 Comparative Statement of ncome Appendix B and Exenise For the Fiscal Years Ended June 30, 1969 and June 30,1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D July 1-June 30 1968/69 1967/68 Income Income from obligations of United States Government and its instrumentalities and time deposits . ....................................................... $ 1,864,865 $ 2,015,287 Income from loans, equity investments and standby and underwriting commitments: Fixed interest ................................................................ 4,780,733 3,978,610 Additional interest ........................................................... 370,641 318,051 Commitment charges ......................................................... 410,212 394,884 Dividends .................................................................... 4,394,139 3,349,977 Commissions ................................................................ 154,287 63,000 Other income .................................................................. 5,394 12,606 GROSS INCOME .............................................................. $11,980,271 $10,132,415 Expenses Administrative expenses: Personal services ............................................................ $ 2,408,904 $ 1,880,027 Contributions to staff benefits ................................................ 369,664 413,035 Fees and compensation ...................................................... 120,669 189,632 Representation ............................................................... 42,313 36,492 Travel .. 619,441 514,062 Supplies and material ........................................................ 33,335 28,587 Office occupancy ............................................................ 222,591 203,474 Communication services ..................................................... 124,242 98,997 Furniture and equipment ..................................................... 79,770 48,761 Books and library services .................................................... 37,238 32,911 Printing .................................................................... 61,555 51,864 Insurance .................................................................... 17,532 14,616 Other expenses .............................................................. 7,562 3,879 Total administrative expenses ............................................... $ 4,144,816 $ 3,516,337 Charges on borrowings ........................................................ 375,000 375,000 GROSS EXPENSES ........................................................... $ 4,519,816 $ 3,891,337 Net Income-Allocated to Reserve Against Losses-Note D ..................... $ 7,460,455 $ 6,241,078 Comp§zu¶e Satement Of Change 'n RegvveAgam§l Lo5se For the Fiscal Years Ended June 30, 1969 and June 30, 1968 Expressed in United States Currency-See Notes to Financial Statements, Appendix D July 1-June 30 1968/69 1967/68 Balance Beginning of Period .................................................. $40,936,366 $34,702,136 Additions and Deductions Net income-Note D . ............................................................ 7,460,455 6,241,078 Net gains on sales and other dispositions of loans and equity investments ........ 229,296 546,650 Net other losses . .............................................................. (11,160) (553,498) Balance End of Period ......................................................... $48,614,957 $40,936,366 35 Statement of Operational Investments and Standby and Underwriting Commitments June 30, 1969 Expressed In United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisition Original principal amount and by others of net of exchange adjustments standby and securities underwriting covered by Standby and commitments standby and Cancellations, COUNTRY Operational underwriting not yet underwriting terminations and Obligor investments commitments effective(l) commitments and write-offs Argentina. I Acindar Industria Argentina de Aceros, S.A ...........$ 3,660,000 $ - $ - $ - $ - 2 Papelera Rio Parana, S.A .............................. 3,000,000 - - - 3,000,000 3 Fabrica Argentina de Engranajes, S.A.I.C... .......... 1,500,000 - - - 4 Pasa, Petroquimica Argentina, S.A.I.C ................. 3,050,000 - - - 2,745,000 5 Celulosa Argentina, S.A ............................... 2,500,000 - - - 6 Dalmine Siderca, S.A .................. II...... 3,000,000 3,000,000 7 Editorial Codex, S.A .............. . 7,000,000 - 7,000,000 - 8 TOTAL ................................. .......... 20,710,000 3,000,000 10,000,000 - 5,745,000 Australia 9 Duncan's Holdings, Ltd ................ j........... ... 660,000 - - - 10 Rubbertex (Australia) Proprietary, Ltd.(4) ..........II . 315,000 - - 11 TOTAL ............................................. 975,000 - - -- Brazil 12 Siemens do Brasil Cia. de Eletricidade ...... ... 2,000,000 - - - 1,000,000 13 Olinkraft, S.A. Celulose e Papel .................... 1,200,000 - - - 243,000 14 D.L.R. Plasticos do Brasil, S.A ........................ 450,000 - - 15 Willys-Overland do Brasil, S.A., Industria e Comercio ................................. 2,450,000 - - 16 Companhia Mineira de Cimento Portland, S.A .......... 1,200,000 - - 17 Champion Celulose, S.A .................i........... 4,000,000 i8 Acos Villares, S.A.(4) ..................... I....... 4,959,026 - - 19 Papel e Celulose Catarinense, S.A.(4) ................ . 7,191,881 - 1,059,000 - 75,023 20 Ultrafertil, S.A.-Industria e Comercio de Fertilizantes .10,658,000 - - -- 21 Petroquimica Uniao, S.A ............................. 8,380,000 - 8,380,000 - 22 TOTAL .................. 42,488,907 - 9,439,000 - 1,318,023 Chile 23 Empresa Minera de Mantos Blancos, S.A.(4) .. . 4,337,500 - - 24 Fideos y Alimentos Carozzi, S.A.(4) .................. 1,653,846 25 Cementos Bio-Bio, S.A.4 .................. 1,300,000 - 26 Compariua Manufacturera de Papeles y Cartones, S.A. . 3,000,000 - - - 27 TOTAL ........................... , 10,291,346 - - - Colombia 28 LAminas del Caribe, Ltda .............................. 500,000 29 Industrias Alimenticias Noel, S.A.(4) ....... .. ....... 2,045,867 - 30 Envases Colombianos, S.A.. .......................... 700,000 - - - 400,000 31 Morfeo-Productos Para el Hogar, S.A.M4 .. .. . ..... . 175,950 - 32 Electromanufacturas, S.A .............................. 500,000 - - - 289,625 33 Corporaci6n Financiera Colombiana4 .................. 2,023,730 - - - 514 34 Corporaci6n Financiera Nacionals4) ............... . . 2,042,000 - - - 34 35 Companiia Colombiana de Tejidos, S.A.(4) .............. 2,126,415 - 36 Corporaci6n Financiera de Caldas ..................... 701,403 - 37 Forjas de Colombia, S.A.(4) ......... .............. . 915,393 352,109 - 175,561 423 38 Almacenes Generales de Dep6sito Santa F6, S.A. "Almaviva ............. ....... 1,000,000 - - - 39 Industria Ganadera Colombiana, S.A.. 1,594,588 - - 42,800 40 Enka de Colombia, S.A ............................. 923,988 - - 41 Compafila de Desarrollo de Hoteles y Turismo, Ltda.-Hoturismo ........... .............. 5,935 - 42 Corporaci6n Financiera del Norte .........i............ 432,028 - 432,028 43 Corporaci6n Financiera del Valle . . ..................... 432,028 - 432,028 - - 44 TOTAL .............................................. 16,119,325 352,109 864,056 175,561 733,396 36 Appendix C Undisbursed Principal balance of repayments effective Held by Corporation to Loans and Loans loans Corporation equity sold converted Principal and equity Total loans and or agreed into amount investment and equity redemptions to be sold(2) equity disbursed agreementst3) Loans Equity (at cost) $ 2,240,000 $ 525,000 $ - $ 3,660,000 $ _ $ 895,000 $ - $ 895,000 1 _ _ . -_ - _ _ _ - 2 - 275,000 - 1,500,000 1 1,225,000 - 1,225,000 3 - 305,000 - 305,000 - - - 4 250,000 250,000 - 2,500,000 - 2,000,000 - 2,000,000 5 - Note 8 - - - - - - 6 - Note 9 - - - - - - 7 2,490,000 1,355,000 - 7,965,000 4,120,000 - 4,120,000 8 660,000 - - 660,000 - - - - 9 42,750 272,250 - 315,000 - - - - 10 702,750 272,250 - 975,000 - - - - 11 140,000 860,000 - 1,000,000 - - - - 12 - 957,000 - 957,000 - - - - 13 250,000 - - 450,000 - 200,000 - 200,000 14 2,450,000 - - 2,450,000 - - - - 15 - 1,200,000 - 1,200,000 - - - - 16 742,500 3,175,000 - 4,000,000 - 82,500 Note 5 82,500 17 364,000 - - 4,959,026 - 3,636,000 959,026 4,595,026 18 - 1,642,500110) - 6,057,858 - 1,282,500 3,132,858 4,415,358 19 - 260,000 - 10,083,824 574,176 7,397,000 3,001,000 10,398,000 20 - Note 11 - - - - - - 21 3,946,500 8,094,500 - 31,157,708 574,176 12,598,000 7,092,884 19,690,884 22 867,339 2,232,661 - 4,337,500 - - 1,237,500 1,237,500 23 1,199,640 - - 1,653,846 - 300,360 153,846 454,206 24 720,000 - - 1,300,000 - 480,000 100,000 580,000 25 1,175,000 900,000 - 3,000,000 - 925,000 - 925,000 26 3,961,979 3,132,661 - 10,291,346 - 1,705,360 1,491,346 3,196,706 27 500,000 - - 500,000 - - - - 28 961,120 412,416 - 2,045,867 - 628,880 43,451 672,331 29 203,571 96,429 - 300,000 - - - - 30 41,800 3,979 86,000 175,950 - 42,200 87,971 130,171 31 - 210,375 - 210,375 - - - - 32 - - 1,999,486 2,023,216 - - 2,023,216 2,023,216 33 - 843,807 1,999,966 2,041,966 - - 1,198,159 1,198,159 34 248,000 1,809,155 21,402 2,126,415 - 5,598 63,662 69,260 35 - - - 701,403 - - 701,403 701,403 36 - - - 1,091,518 - - 1,091,518 1,091,518 37 623,400 376,600 - 1,000,000 - - - - 38 100,000 - - 706,570 845,218 857,200 594,588 1,451,788 39 - - - 923,988 - - 923,988 923,988 40 - - - 5,935 - - 5,935 5,935 41 - - - - - - - - 42 - 43 2,677,891 3,752,761 4,106,854 13,853,203 845,218 1,533,878 6,733,891 8,267,769 44 (continued) 37 Statement of Operati'onal Investments and Standby and Underwriting Commitments (continued) June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisition Original principal amount and by others of net of exchange adjustments standby and securities underwriting covered by Standby and commitments standby and Cancellations, COUNTRY Operational underwriting not yet underwriting terminations and Obligor investments commitments effective(') commitments and write-offs Costa Rica 45 Productos de Concreto, S.A.(4) ........ ................ $ 278,751 $ 310,801 $ - $ 82,189 $ Ecuador 46 La Internacional, S.A ......................... I ....... 1,963,309 - - - 47 Ecuatoriana de Desarrollo, S.A. (Compariia Financiera) ......... ...................... 251,371 48 TOTAL .............................................. 2,214,680 - - - - El Salvador 49 Industrias Textiles, S.A ... ............................ 140,000 - 50 Hoteles de Centro America, S.A ....................... 933,400 - 933,400 51 TOTAL .............................................. 1,073,400 - 933,400 - - Ethiopia 52 Cotton Company of Ethiopia, S.C ...... . .............. 2,507,557 - - - 53 Ethiopian Pulp and Paper, S.C .......................... 200,000 1,708,501 - 575,000 54 H.V.A.-Metahara, S.C ................................. 7,037,672 2,007,026 - 1,070,340 55 TOTAL ............................................... 9,745,229 3,715,527 - 1,645,340 - Finland 56 Oy Kutomotuote Ab, Tricol Oy, Toli Oy ................ 156,000 - - - 57 Rauma-Repola Oy ..................................... 1,875,000 - - - 58 Teollistamisrahasto Oy ................................ 158,644 158,644 - 158,009 59 Huhtamaki-yhtyma Oy ........... ...................... 799,357 - - - - 60 TOTAL .............................................. 2,989,001 158,644 - 158,009 Greece 61 Aevol Industrial Company of Organic Fertilizers, S.A ............................ 600,000 - - - 62 "Titan" Cement Company, S.A.34) ................... . 1,525,920 63 National Investment Bank for Industrial Development, S.A .......................... 719,082 64 General Cement Company, S.A ........................ 3,500,000 65 TOTAL ............................ ................. 6,345,002 - - - - Guatemala 66 Industria Harinera Guatemalteca, S.A .................. 200,000 - - - Honduras 67 Empresa de Curtidos Centro Americana, S.A.(4) ....... . 377,500 - - - 68 Compania Pino Celulosa de Centro America, S.A ....... 37,500 - - - 69 TOTAL .............................................. 415,000 - - - - India 70 Republic Forge Company, Ltd .......................... 1,500,000 - - - 1,500,000 71 Kirloskar Oil Engines, Ltd .............................. 850,000 - - - 850,000 72 Assam Sillimanite, Ltd ................................. 1,365,000 - - - 478,724 73 K.S.B. Pumps, Ltd .................... 210,000 - - - - 74 Precision Bearings India, Ltd.(4) ...................... . 1,030,197 75 Fort Gloster Industries, Ltd ...... ..................... 1,211,047 - - - - 76 Mahindra Ugine Steel Company, Ltd .................... 3,296,607 - - - - 77 Lakshmi Machine Works, Ltd .......................... 1,312,434 - - - - 78 Jayshree Chemicals, Ltd ............................... 1,154,816 - - - - 79 Indian Explosives, Ltd ................................. 11,462,437 - - - 3,010,000 80 Zuari Agro Chemicals, Ltd ............................. 15,940,000 - 15,940,000 - - 81 TOTAL .............................................. 39,332,538 - 15,940,000 - 5,838,724 Appendix C Undisbursed Principal balance of repayments effective Held by Corporation to Loans and Loans loans Corporation equity sold converted Principal and equity Total loans and or agreed into amount investment and equity redemptions to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) $ 145,000 $ 134,821 $ - $ 507,363 $ - $ 131,333 $ 96,209 $ 227,542 45 107,000 758,229 - 1,963,309 - 901,000 197,080 1,098,080 46 - - - 251,371 - - 251,371 251,371 47 107,000 758,229 - 2,214,680 - 901,000 448,451 1,349,451 48 140,000 - - 140,000 - - - - 49 - - - - - - - - 50 140,000 - - 140,000 - - - - 51 - 788,000 - 2,507,557 - 712,000 1,007,557 1,719,557 52 - 124,695 - 1,133,501 200,000 - 1,208,806 1,208,806 53 - 650,000 - 6,266,358 1,708,000 4,870,000 2,454,358 7,324,358 54 - 1,562,695 - 9,907,416 1,908,000 5,582,000 4,670,721 10,252,721 55 48,000 108,000 - 156,000 - - - - 56 585,000 1,290,000 - 1,875,000 - - - - 57 - - - 159,279 - - 159,279 159,279 58 104,000 624,514 - 799,357 - - 70,843 70,843 59 737,000 2,022,514 - 2,989,636 - - 230,122 230,122 60 120,000 - - 600,000 - 480,000 Note 5 480,000 61 - 975,836 - 1,525,920 - 275,000 275,084 550,084 62 - - - 719,082 - - 719,082 719,082 63 - 1,400,000 - 3,500,000 - 2,100,000 - 2,100,000 64 120,000 2,375,836 - 6,345,002 - 2,855,000 994,166 3,849,166 65 66,000 134,000 - 200,000 - - - - 66 39,850 100,750 - 377,500 - 170,150 66,750 236,900 67 - - - 28,125 9,375 - 37,500 37,500 68 39,850 100,750 - 405,625 9,375 170,150 104,250 274,400 69 - - - - - - - - 70 - - - - - - - - 71 464,000 - - 886,276 - 422,276 - 422,276 72 126,000 - - 210,000 - 84,000 - 84,000 73 13,100 260,000 - 935,639 94,558 378,150 378,947 757,097 74 253,750 151,380 - 1,211,047 - 456,750 349,167 805,917 75 110,000 142,341 - 3,030,274 266,333 2,090,275 953,991 3,044,266 76 107,040 141,743 - 1,312,434 - 749,280 314,371 1,063,651 77 105,000 - - 923,316 231,500 945,000 104,816 1,049,816 78 - 928,400 - 5,074,170 3,378,267 4,661,600 2,862,437 7,524,037 79 - Note 12 - - - - - - 80 1,178,890 1,623,864 - 13,583,156 3,970,658 9,787,331 4,963,729 14,751,060 81 (continued) 39 Statement of Operational Investments and Standby and Underwriting Commitments (continued) June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisition Original principal amount and by others of net of exchange adjustments standby and securities underwriting covered by Standby and commitments standby and Cancellations, COUNTRY Operational underwriting not yet underwriting terminations and Obligor investments commitments effective(l) commitments and write-offs Iran 82 Sherkate Sahami Kahkashan ........................... $ 300,000 $ - $ - $ - $ 83 Sherkate Sahami Navard va Luleh Ahwaz .............. 3,873980 84 TOTAL ........... .................................. 4,173,980 - - - - Italy 85 Magrini Meridionale, S.p.A . ....................... 960,000 Ivory Coast 86 Banque Ivoirienne de Developpement Industriel, S.A._ 204,081 Jamaica 87 Jamaica Pre-Mix, Ltd ............ ....... ..... 224,000 - - - - 88 Pegasus Hotels of Jamaica, Ltd ........................ 2,913,000 - 2,913,000 89 TOTAL ....3...................................... 3137,000 - 2,913,000 - - Kenya 90 Kenya Hotel Properties, Ltd ............................ 3,073,186 - Korea 91 Korea Development Finance Corporation ..... .......... 702,043 92 Honam Silk Industry Company ........................ 1,707,500 - 1,707,500 93 TOTAL ........ .................................... 2,409,543 - 1,707,500 - - Liberia 94 Liberian Bank for Industrial Development and Investment ......................... - 250,000 - 1,050 Malaysia 95 Malaysian Industrial Development Finance, Berhad ..... 817,500 490,000 - 490,000 96 Tasek Cement, Berhad ................................ 1,559,381 - - 97 Malayawata Steel, Berhad(4l .................... ...... 3,693,489 - - 98 TOTAL ......... 6,070,370 490,000 - 490,000 - Mauritania 99 Societ6 Miniere de Mauritanie .......................... 20,006,515 - - - Mexico 100 Industrias Perfect Circle, S.A.(4) . . ...................................... 800,000 - - - 200,000 101 Bristol de Mexico, S.A ........................ 520,000 - - 102 Acero Solar, S.A ...................................... 280,000 - - 103 Compafnla Fundidora de Fierro y Acero de Monterrey, S.A.(4) .................. ...... 1,952,073 21,789,338 - 18,056,032 324,321 104 Tubos de Acero de Mexico, S.A.. ...................... 250,000 750,000 - 600,000 - 105 Qulmica del Rey, S.A .................................. 750,000 - - 106 Industria del Hierro, S.A.(4) ............ .. . .. . .. . .. . .. . 1,961,569 - - 107 TOTAL ....6 . 6513,642 22,539,338 - 18,656,032 524,321 Morocco 108 Banque Nationale pour le D6veloppement Economique ..... ................... 1,495,774 - - - 109 Companila Industrial del Lukus, S.A .................... 1,388,486 110 TOTAL .............................................. 2,884,260 - - - - Nicaragua 111 Textiles Fabricato de Nicaragua, S.A ................... 2,071,428 - - Nigeria 112 Nigerian Industrial Development Bank, Ltd .............. - 1,400,000 - 484 - 113 Arewa Textiles, Ltd.(4) .1..... ...................... 1571,031 - - 250,000 12,143, 114 TOTAL ................................... ......... 1,571,031 1,400,000 - 484 262,143 40 Appendix C Undisbursed Principal balance of repayments effective" Held by Corporation to Loans and Loans loans Corporation equity sold converted Principal and equity Total loans and or agreed into amount investment and equity redemptions to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) $ 300,000 $ - $ - $ 300,000 $ - $ - $ - $ - 82 - 1,323,954 - 272,000 3,601,980 1,835,000 715,026 2,550,026 83 300,000 1,323,954 - 572,000 3,601,980 1,835,000 715,026 2,550,026 84 - 960,000 - 960,000 - - - - 85 - - - 204,081 - - 204,081 204,081 86 224,000 - - 224,000 - - 87 - Note 13 - - - - - - 88 224,000 - - 224,000 - - - - 89 - 962,180 - 2,972,386 100,800 1,550,000 561,006 2,111,006 90 - - - 702,043 - - 702,043 702,043 91 _ - - - - - - - 92 - - - 702,043 - - 702,043 702,043 93 - 310 - 248,950 - - 248,640 248,640 94 - - - 817,500 - - 817,500 817,500 95 82,500 787,506 - 1,559,381 - 689,375 - 689,375 96 - 936,002 - 3,203,489 490,000 1,551,000 1,206,487 2,757,487 97 82,500 1,723,508 - 5,580,370 490,000 2,240,375 2,023,987 4,264,362 98 - 9,502,606 - 4,656,515 15,350,000 9,780,000 723,909 10,503,909 99 600,000 - - 600,000 - - - - 100 520,000 - - 520,000 - - - - 101 - 280,000 - 280,000 - - - - 102 - 2,642,575 - 5,361,058 - 1,298,800 1,419,683 2,718,483 103 - 309,000 121,000 400,000 - 91,000 - 91,000 104 73,998 676,002 - 750,000 - - - - 105 - 520,416 - 1,961,569 - - 1,441,153 1,441,153 106 1,193,998 4,427,993 121,000 9,872,627 - 1,389,800 2,860,836 4,250,636 107 510,687 - - 1,495,774 - - 985,087 985,087 108 - 420,000 - 1,288,486 100,000 470,000 498,486 968,486 109 510,687 420,000 - 2,784,260 100,000 470,000 1,483,573 1,953,573 110 - 928,571 - 896,428 1,175,000 500,000 642,857 1,142,857 111 - - - 1,399,516 - - 1,399,516 1,399,516 112 - 728,036 - 1,321,031 - 74,160 506,692 580,852 113 - 728,036 - 2,720,547 - 74,160 1,906,208 1,980,368 114 (continued) 41 Statement of Operational Investments and Standby and Underwriting Commitments (continued) June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisition Original principal amount and by others of net of exchange adjustments standby and securities underwriting covered by Standby and commitments standby and Cancellations, COUNTRY Operational underwriting not yet underwriting terminations and Obligor investments commitments effective(1) commitments and write-offs Pakistan 115 Steel Corporation of Pakistan, Ltd ..................... $ 630,000 $ - $ - $ - $ - 116 Adamjee Industries, Ltd ................ 750,000 - - - 295 117 Ismail Cement Industries, Ltd.(4) . ............ . 5,668,408 - - - 153,609 118 Pakistan Industrial Credit and Investment Corporation, Ltd.(4) ............. .......... ...... 486,246 - - - - 119 Crescent Jute Products, Ltd . .............. 1,950,000 - - - 13,621 120 Packages, Ltd ......................................... 3,151,662 121 Pakistan Paper Corporation, Ltd . ............ 5,219,088 - - - - 122 Dawood Hercules Chemicals, Ltd . ............ 3,919,523 - - - - 123 Karnaphuli Paper Mills, Ltd . ............... 6,230,001 - 6,230,001 - - 124 TOTAL .............................................. 28,004,928 - 6,230,001 - 167,525 Peru 125 Industrias Reunidas, S.A ................ 250,000 - - - - 126 Luren, S.A. and Ladrillos Calcareos, S.A . ....... 280,000 - - - 127 Durisol del Peru, S.A .................. 300,000 - - - 300,000(c 128 Fertilizantes Sint6ticos, S.A.(4) . ...................... . 4,083,290 - - - 129 Cemento Andino, S.A.(4) .1.......... ................. . 2,461,500 - - - 130 Compauifa de Cemento Pacasmayo, S.A.(4) . .......... . 1,605,151 - - - - 131 TOTAL ....................... &&%................... 8,979,941 - - - 300,000 Philippines 132 Private Development Corporation of the Philippines .................................... - 4,359,063 - 4,153,846 - 133 Manila Electric Company . ................. 12,000,000 - - - 134 TOTAL .............................................. 12,000,000 4,359,063 - 4,153,846 - Senegal 135 Societe Industrielle d'Engrais au S6n6gal. .3,459,766 - - - - Spain 136 Fabrica Espahola Magnetos, S.A.(4) . ................ . 3,362,288 - - - 137 Banco del Desarrollo Econ6mico Espahiol, S.A.(4) ...... . 585,351 - - - 138 TOTAL ...... ....... 3,947,639 - - - - Sudan 139 Khartoum Spinning and Weaving Company, Ltd ........ 688,893 - - - 12,110(0 Tanzania 140 Kilombero Sugar Company, Ltd.(4) . .................. . 4,657,485 - - - 292,560 301,4850 Thailand 141 Concrete Products and Aggregate Company, Ltd ...... 300,000 - - - - 142 Industrial Finance Corporation of Thailand> . ...... 193,108 - - - - 143 Siam Cement Group Companies . ............. 22,081,649 - - - - 144 TOTAL .............................................. 22,574,757 - - - - Tunisia 145 NPK-Engrais, S.A.T ................... 3,500,000 - - - 11,498 146 Soci6te Nationale d'lnvestissement . .......... 575,926 - - - - 147 Compagnie Financiere et Touristique, S.A . .... 9,904,762 - 9,904,762 - - 148 TOTAL .............................................. 13,980,688 - 9,904,762 - 11,498 Turkey 149 Turkiye Sinai Kalkinma Bankasi, A.S.(4) . . 1,671,389 - 417,222 - - 150 Sentetik Iplik Fabrikalari, A.S.(4) . ............. 3,297,222 - 1,928,333 - 151 TOTAL ................................ ............. 4,968,611 - 2,345,555 - 42 Appendix C Undisbursed Principal balance of repayments effective Held by Corporation to Loans and Loans loans Corporation equity sold converted Principal and equity Total loans and or agreed into amount investment and equity redemptions to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) $ 630,000 $ $ - $ 630,000 $ - $ - $ - $ - 115 749,705 - - 749,705 _ - - - 116 906,776 489,079 - 5,497,018 17,781 3,701,616 417,328 4,118,944 117 - 36,846 - 486,246 - - 449,400 449,400 118 243,600 121,800 - 1,936,379 - 1,570,979 - 1,570,979 119 - 1,323,718 - 3,148,704 2,958 1,223,000 604,944 1,827,944 120 1,000 327,457 - 3,582,330 1,636,758 2,871,543 2,019,088 4,890,631 121 - - - 584,787 3,334,736 1,000,000 2,919,523 3,919,523 122 - Note 14 - - - - - - 123 2,531,081 2,298,900 - 16,615,169 4,992,233 10,367,138 6,410,283 16,777,421 124 250,000 - - 250,000 - - - - 125 280,000 - - 280,000 - - - - 126 * - - 300,000 - - - - 127 1,305,000 2,264,000 - 4,083,290 514,290 - 514,290 128 640,375 - 200,000 2,461,500 - 1,621,125 200,000 1,821,125 129 24,300 1,357,200 164,849 1,605,151 - 53,651 170,000 223,651 130 2,499,675 3,621,200 364,849 8,979,941 - 2,189,066 370,000 2,559,066 131 - 205,217 - 205,217 - - - - 132 35,250 2,677,977 - 12,000,000 - 5,647,750 3,639,023 9,286,773 133 35,250 2,883,194 - 12,205,217 - 5,647,750 3,639,023 9,286,773 134 - 755,000 - 3,259,766 200,000 1,695,000 1,009,766 2,704,766 135 100,000 1,921,789 - 3,362,288 - 765,000 575,499 1,340,499 136 - - - 585,351 - - 585,351 585,351 137 100,000 1,921,789 - 3,947,639 - 765,000 1,160,850 1,925,850 138 49,700 225,846 - 688,893 - 128,600 272,637 401,237 139 149,040 3,914,400 700,000 4,364,925 - - - - 140 - 300,000 - 300,000 - - - - 141 - - - 193,108 - - 193,108 193,108 142 - 14,874,089 - 4,023,957 18,057,692 4,830,000 2,377,560 7,207,560 143 - 15,174,089 - 4,517,065 18,057,692 4,830,000 2,570,668 7,400,668 144 263,200 1,157,173 - 3,488,502 - 919,200 1,148,929 2,068,129 145 - - - 575,926 - 575,926 575,926 146 - Note 15 _- - - - - 147 263,200 1,157,173 - 4,064,428 - 919,200 1,724,855 2,644,055 148 - 339,050116) - 1,254,167 - - 915,117 915,117 149 - - - 1,368,889 - 900,000 468,889 1,368,889 150 - 339,050 - 2,623,056 - 900,000 1,384,006 2,284,006 151 (continued) 43 Statement of Operational Investments and Standby and Underwriting Commi'tments (continued) June 30, 1969 Expressed in United States Currency-See Notes to Financial Statements, Appendix D Operational investments Acquisition Original principal amount and by others of net of exchange adjustments standby and securities underwriting covered by Standby and commitments standby and Cancellations, COUNTRY Operational underwriting not yet underwriting terminations and Obligor investments commitments effective(M) commitments and write-offs Uganda 152 Mulco Textiles, Ltd .................................... $ 3,508,436 $ - $ - $ - $ 70,000 227,596( Venezuela 153 Siderurgica Venezolana "Sivensa", S.A.(4) . ........... . 3,140,529 - - - - 154 Diablitos Venezolanos, C.A . ........................... 500,000 - - - 324,000 155 C.A. Venezolana de Desarrollo (Sociedad Financiera)(4) . ....... ......... . 8,836,183 - - - - 156 Dominguez y Cfa.-Caracas, S.A . ......... - 514,541 - 84,341 157 Protinal, C.A .......................................... - 2,079,178 - 699,386 - 158 TOTAL ............................................ 12,476,712 2,593,719 - 783,727 324,000 159 GRAND TOTAL ............................ ........ $325,501,071 $39,169,201 $60,277,274 $26,146,238 $16,128,381 $364,670,272 44 Appendix C Undisbursed Principal balance of repayments effective Held by Corporation to Loans and Loans loans Corporation equity sold converted Principal and equity Total loans and or agreed into amount investment and equity redemptions to be sold(2) equity disbursed agreements(3) Loans Equity (at cost) $ 303,611 $ 1,292,200 $ - $ 3,438,436 $ - $ 1,143,600 $ 471,429 $ 1,615,029 152 1,087,500 2,053,029 300,000 3,140,529 - - - - 153 - 176,000 - 176,000 - - - - 154 - 1,195,000 - 3,714,522 5,121,661 6,305,000 1,336,183 7,641,183 155 - - - 430,200 - - 430,200 430,200 156 - 479,520 - 1,379,792 - 900,272 - 900,272 157 1,087,500 3,903,549 300,000 8,841,043 5,121,661 7,205,272 1,766,383 8,971,655 158 $25,643,102 $83,783,429 $5,592,703 $206,474,920 $56,496,793 $93,014,013 $59,677,835 $152,691,848 159 (continued) 45 Statement of Operational Investments and Standby and Underwriting Commitments (continued) Summary of Currencies in Which Effective Loans and Equity Investments Held by Corporation are Denominated Expressed in United States Currency Note 1-In these cases, certain legal formalities must be completed Currency Loans Equits and other conditions fulfilled before funds may be withdrawn on Brazilian new cruzeiros .$ - $ 7,092,88' account of the investments or before disbursements are required CFA francs ..- 1 ,937,75( for commitments underwritten. Chilean escudos - 153,84f Note 2-Amounts sold represent respective book values and any Colombian pesos . .- 6,733,891 profits or losses on these sales have been entered directly to the Costa Rican colones - 96,20' reserve against losses. To date, such profits have totaled $3,843,268 Ecuadoran sucres . .- 448,451 and losses $336,453 resulting in net profits of $3,506,815. This Ethiopian dollars . .- 4,670,721 column does not include $13,580,325 of commitments not yet Finnish markkaa . ........... ... - 230,12' effective which the Corporation has agreed to sell as shown below Greek drachmas ................... - 994,16( in Notes 8 to 16. Honduran lempiras ................ - 104,25( Note 3-This includes $22,996,218 of effective investments which Indian rupees . ........ - 4,963,72~ the Corporation has agreed to sell. Iranian rials .......... - 715,02t Note 4-The Corporation has made more than one commitment to Kenya shillings . ................... - 561 ,00 this company. Korean won ............- 702,04~ Malaysian dollars ...... . ........ - 2,023,98. Note 5-The Corporation has received shares in this company Mexican pesos .................... - 2,860,83( at no cost. Moroccan dirhams ................. - 11,483,57. Note 6-Write-off-Investment $300,000 Nicaraguan cordobas ... .......... - 642,85 Note 7-Write-off-Currency devaluation $553,334 Nigerian pounds ................... - 1,906,20i Note 8-The Corporation has agreed to sell up to $2,250,000 Pakistan rupees ................... - 6,410,2& of this standby commitment. Philippine pesos .- 3,639,02 Note 9-The Corporation has agreed to sell $2,950,000 of this Poundssterling p ................... 12,160,85 commitment. Sudanese pounds .- 272,63 Note 10-The Corporation has agreed to sell $370,650 of this Thai baht ......................... - 2,570,66f commitment. Tunisian dinars ................... 1,724,85! Note 11-The Corporation has agreed to sell $2,363,000 of this Turkish liras ...................... - 1,384,001 commitment. Uganda shillings ................. - 471,425 Note 12-The Corporation has agreed to sell $924,000 of this United States dollars .............. 91,468,957 1,956,14( commitment. Venezuelan bolivares .276,896 1,766,38, Note 13-The Corporation has agreed to sell $954,499 of this TOTAL ......................... $93,014,013 $59,677,83! commitment. Note 14-The Corporation has agreed to sell $2,740,399 of this commitment. Note 15-The Corporation has agreed to sell $1,000,000 of this commitment. Note 16-The Corporation has agreed to sell $27,777 of this commitment. 46 Appendix C Summary of Standby and Underwriting Commitments Expressed in United States Currency Original standby and underwriting Amount acquired by the commitments Corporation and its net of subunderwriters COUNTRY exchange Participation by Acquisition and Obligor adjustments subunderwriters by others Subunderwriters Corporation Argentina Dalmine Siderca, S.A ............ $ 3,000,000(1) $ - $ - $ Note 2 $ - Colombia Forjas de Colombia, S.A ......... 352,109 - 175,561 - 176,548 Costa Rica Productos de Concreto, S.A ...... 310,801 - 82,189 - 228,612 Ethiopia Ethiopian Pulp and Paper, S.C.... 1,715,527 124,695 575,000 124,695 1,015,832 H.V.A.-Metahara, S.C ....... 2,000,000 1,000,000 1,070,340 - 929,660 Finland Teollistamisrahasto Oy .......... 158,644 - 158,009 - 635 Liberia Liberian Bank for Industrial Development and Investment .... 250,000 - 1,050 - 248,950 Malaysia Malaysian Industrial Development Finance, Berhad ... 490,000 - 490,000 - - Mexico Compaifa Fundidora de Fierro y Acero de Monterrey, S.A. (1962) 2,944,856 1,040,513 1,782,206 410,797 751,853 Companlia Fundidora de Fierro y Acero de Monterrey, S.A. (1964) 6,100,000(3) 5,298,545 6,010,144 9,620 1,310 Compafifa Fundidora de Fierro y Acero de Monterrey, S.A. (1966) 5,724,303 3,020,426 3,745,047 10,520 1,968,736 Compafia Fundidora de Fierro y Acero de Monterrey, S.A. (1968) 7,020,179(4) 6,040,852 6,428,635 383,815 52,334 Tubos de Acero de Mexico, S.A. 750,000 - 600,000 - 150,000 Nigeria Nigerian Industrial Development Bank, Ltd ......... 1,400,000 - 484 - 1,399,516 Philippines Private Development Corporation of the Philippines .. 4,359,063 - 4,153,846 - 205,217 Venezuela Dominguez y Cia.-Caracas, S.A.. 514,541 - 84,341 - 430,200 Protinal, C.A.......... . ....... 2,079,178 - 699,386 - 1,379,792 TOTAL ...... ................. $39,169,201 $16,525,031 $26,056,238 $939,447 $8,939,195 Note 1-Not yet effective. Note 2-The Corporation has agreed to sell up to $2,250,000 of this standby commitment. Note 3-Includes $78,926 which was canceled as an underwriting commitment when the Corporation decided to exercise stock rights on its original shareholding. Note 4-Includes $155,395 which was canceled as an underwriting commitment when the Corporation decided to exercise stock rights on its original shareholding. 47 Notes to Financial Statements Appendix D June 30, 1969 Note A No representation is made that any currency held by the The undisbursed balances of investment commitments made Corporation is convertible into any other currency at any rate in currencies other than United States dollars have been or rates. translated into United States dollars at the par values as specified in the "Schedule of Par Values", published by the Note B International Monetary Fund, or in the cases of Colombian The principal disbursed and outstanding on effective loans pesos and Korean won at the rates of 17.36 and 280.00 to 1 and equity investments and the accruals for interest, commit- United States dollar respectively. ment charges and other income on such loans and equity Amounts disbursed and held bythe Corporation in currencies investments and on underwriting commitments are denomi- other than United States dollars have been translated into nated in United States dollars except the following amounts United States dollars atthe following average exchange rates, forwhich the dollar equivalent is shown: adjusted in the case of loans by amounts written off as a result Principal outstanding ........... ............... $53,871,203 of a currency devaluation: Accrued interest, commitment charges and other income ............................ 32,869 Currency Unit TOTAL ..................................... $53,904,072 Currency per uS dollar Brazilian new cruzeiros ....................... 3.131 Note C CFA francs ................................... 247.446 The amount receivable from purchasers on account of effec- Chilean escudos .............................. 2.340 tive loans and equity investments agreed to be sold includes Colombian pesos .............................. 11.667 $3,092,928 in respect of a sale made on an instalment basis. Costa Rican colones ........ .................. 6.620 Of this amount $347,760 is receivable by the Corporation with- Ecuadoran sucres ............................. 21.296 in one year. Ethiopian dollars .............................. 2.481 Finnish markkaa ............................... 3216 Note D Greek drachmas ............................... 29.900 Pursuant to action of the Directors, the net income of the Honduran lempiras ............ ................ 2.000 Corporation hasbeenallocatedtoareserveagainstlossesand Indian rupees ................................. 6.613 the future net income of the Corporation will, until further Iranian rials ................................... 75.000 action by the Directors or the Board of Governors, be allo- Kenya shillings ................................ 7.156 cated to this reserve. Korean won ................................... 274.200 By reason of default in payment, the Corporation has pre- Malaysian dollars .............................. 3.064 matured its loan to Aevol Industrial Company of Organic Mexican pesos ................ ................ 12.490 Fertilizers, S.A. and its loan to D.L.R. PlAsticos do Brasil, S.A. Moroccan dirhams .......... .................. 5.016 Nicaraguan cordobas .......................... 7.000 Fertilizantes Sinteticos, S.A. is in arrears in payment of Nigerian pounds .............................. 0.357 $98,879 interest due on convertible subordinated debentures, Pakistan rupees ............................... 4.735 of which$21,070isfortheaccountof participants. Philippine pesos .............................. 3.909 Arewa Textiles, Ltd. has not paid a principal instalment of Pounds sterling ............................... 0.417 £8,700 and interest of £4,913 due on June 30, 1969. Of the Spanish pesetas ............ .................. 60.591 unpaid amounts, all of the principal and £4,067 of the interest Sudanese pounds ............................. 0.348 is for the account of participants. Thai baht ..................................... 20.863 Tunisian dinars ............................... 0.457 General Turkish liras . ................................. 9.000 Swaziland paid $35,000 on account of its subscription prior to Uganda shillings .............................. 7.148 June 30, 1969, but has not yet completed other action neces- Venezuelan bolivares .......................... 4.486 sary for membership. Accrued interest, commitment charges and other income The operational investments are represented by both loans receivable in currencies otherthan United States dollars, have and equity. In addition, in certain investments, the Corpora- been translated into United States dollars at the approximate tion has the right to acquire shares and/or participate in the market rates. profits of the enterprise. 48 Opinion of Financial Statements Independent Auditor Covered by the Foregoing Opinion 1707 L STREET, N.W. WASHINGTON, D.C. 20036 AUGUST 1, 1969 To INTERNATIONAL FINANCE CORPORATION WASHINGTON, D.C. In our opinion, the accompanying financial statements present Balance Sheet ................................. Appendix A fairly, in terms of United States currency, the financial position Comparative Statement of Income and Expenses.Appendix B of International Finance Corporation at June 30,1969, and the results of its operations forthe year then ended, in conformity Comparative Statement of Changes in Reserve with generally accepted accounting principles applied on a Against Losses ............................... Appendix B basis consistent with that of the preceding year. Our exami- nation of these statements was made in accordance with Statement of Operational Investments and generally accepted auditing standards, and accordingly in- Standby and Underwriting Commitments. Appendix C cluded such tests of the accounting records and such other Notes to Financial Statements ............. .... Appendix D auditing procedures as we considered necessary in the circumstances. PRICE WATERHOUSE & CO. 49 Statement of Subscriptions to Appendix E Capital Stock and Voting Power June 30, 1969 Subscriptions Voting Power Subscriptions Voting Power Amount Amount (in thousands Percent Number Percent (in thousands Percent Number Percent Member of dollars) of total of votes of total Member of dollars) of total of votes of total Afghanistan ......... $ 111 .10 361 .28 Luxembourg . . $ 111 .10 361 .28 Argentina . ....... 1,662 1.56 1,912 1.48 Malagasy Republic 111 .10 361 .28 Australia . ....... 2,215 2.08 2,465 1.91 Malawi . . .83 .08 333 .26 Austria . ....... 554 .52 804 .62 Malaysia . . . 277 .26 527 .41 Belgium . ....... 2,492 2.34 2,742 2.12 Mauritania . . . 55 .05 305 .24 Bolivia . .............. 78 .07 328 .25 Mauritius . . . 95 .09 345 .27 Brazil . ......... 1,163 1.09 1,413 1.09 Mexico . . .720 .68 970 .75 Burma . ........ 166 .16 416 .32 Morocco . . . 388 .36 638 .49 Canada . ........ 3,600 3.38 3,850 2.98 Nepal . . .55 .05 305 .24 Ceylon . .............. 166 .16 416 .32 Netherlands ... 3,046 2.86 3,296 2.55 Chile . ............... 388 .36 638 .49 New Zealand 923 .87 1,173 .91 China . ......... 4,154 3.90 4,404 3.41 Nicaragua . . .9 .01 259 .20 Colombia . ...... 388 .36 638 .49 Nigeria . . .369 .35 619 .48 Costa Rica . ..... 22 .02 272 .21 Norway . . .554 .52 804 .62 Cyprus . ....... 83 .08 333 .26 Pakistan . . . 1,108 1.04 1,358 1.05 Denmark . ...... 753 .71 1,003 .78 Panama ... 2 * 252 .19 Dominican Republic . 22 .02 272 .21 Paraguay . . . 16 .01 266 .21 Ecuador . ...... 35 .03 285 .22 Peru ... 194 .18 444 .34 El Salvador .......... 11 .01 261 .20 Philippines . . . 166 .16 416 .32 Ethiopia . ...... 33 .03 283 .22 Portugal ... . 443 .42 693 .54 Finland . ....... 421 .40 671 .52 Saudi Arabia 111 .10 361 .28 France . ........ 5,815 5.46 6,065 4.69 Senegal . . .184 .17 434 .34 Germany . ....... 3,655 3.43 3,905 3.02 Sierra Leone 83 .08 333 .26 Ghana . ........ 166 .16 416 .32 Singapore . . . 177 .17 427 .33 Greece . ....... 277 .26 527 .41 Somalia . . .83 .08 333 .26 Guatemala . ..... 22 .02 272 .21 South Africa ... 1,108 1.04 1,358 1.05 Guyana . ....... 89 .08 339 .26 Spain . . .1,108 1.04 1,358 1.05 Haiti . ............... 22 .02 272 .21 Sudan . . .111 .10 361 .28 Honduras . ...... 11 .01 261 .20 Sweden ...1,108 1.04 1,358 1.05 Iceland . ....... 11 .01 261 .20 Syrian Arab Republic 72 .07 322 .25 India . ......... 4,431 4.16 4,681 3.62 Tanzania . . . 184 .17 434 .34 Indonesia . ....... 1,218 1.14 1,468 1.13 Thailand . . . 139 .13 389 .30 Iran . ......... 372 .35 622 .48 Togo 83 .08 333 .26 Iraq . ............... 67 .06 317 .24 Tunisia . . .133 .12 383 .30 Ireland . ........ 332 .31 582 .45 Turkey . . .476 .45 726 .56 Israel . ............... 50 .05 300 .23 Uganda . . .184 .17 434 .34 Italy . .......... 1,994 1.87 2,244 1.73 United Arab Republic 590 .55 840 .65 Ivory Coast . ..... 111 .10 361 .28 United Kingdom 14,400 13.52 14,650 11.33 Jamaica ............. 148 .14 398 .31 United States ... 35,168 33.01 35,418 27.39 Japan . ......... 2,769 2.60 3,019 2.33 Uruguay . . . 155 .15 405 .31 Jordan . ....... 33 .03 283 .22 Venezuela . . ... 116 .11 366 .28 Kenya . ........ 184 .17 434 .34 Viet-Nam . . . 166 .16 416 .32 Korea . ........ 139 .13 389 .30 Yugoslavia . . . 591 .55 841 .65 Kuwait . ...,.,. 369 .35 619 .48 Zambia . . .295 .28 545 .42 Lebanon . ...... 50 .05 300 .23 Liberia . .............. 83 .08 333 .26 Libya ..., ,, 55 .05 305 .24 TOTALS . ....... $106,540 100.00 129,290 100.00 'Less than .005 percent. General: $35,000 has been received from Swaziland on account of its capital subscription pending admission to membership. 50 Governors and Alternates Appendix F June 30, 1969 Member Governor Alternate Afghanistan . . ......... Mohammed Enwer Ziyaie ................. Abdul Aziz Atayee Argentina . . . Egidio lannella ........................ Ernesto Malaccorto Australia . . . William McMahon ..................... Sir Roland Wilson Austria . . . Stephan Koren . ..................... Walter Neud6rfer Belgium . . . Baron Snoy et d'Oppuers ................ Hubert Ansiaux Bolivia . . . Oscar Vega L6pez .................... Enrique Vargas Guzman Brazil . . . Antonio Delfim Netto .................... Ernane Galveas Burma . . . U Kyaw Nyein .................... U Chit Moung Canada . . . Edgar John Benson .................... A. B. Hockin Ceylon . . . U. B. Wanninayake ..................... Murugeysen Rajendra Chile . . . Carlos Massad Abud .................... Jorge Marshall Silva China . . Kuo-Hwa Yu Colombia . . . . Abd6n Espinosa Valderrama ............. Jorge Meiia-Palacio Costa Rica . . . Omar Dengo 0 ........................... Alvaro Vargas E. Cyprus ... A. C. Patsalides Denmark .............. . Otto Moller .......................... Karl Otto Bredahl Dominican Republic ............ Di6genes H. Fernandez .................. Luis M. Guerrero G6mez Ecuador . . ............ Benito Ottati .......................... Carlos Mantilla-Ortega El Salvador . . ........... Edgardo Suarez C ........................ Armando Interiano Ethiopa .. . ........... Mammo Tadesse .. ...... Moulatou Kassaye Finland ... Mauno Koivisto .Jussi Linnamo France ... Minister of Finance .Bernard Clappier Germany ... Karl Schiller .Franz Josef Strauss Ghana ... Joseph Henry Mensah .E. N. Omaboe Greece... .... John Rodinos-Orlandos .Achilles Cominos Guatemala . . . Mario Fuentes Pieruccini .Jose Luis Bouscayrol Guyana ... P. A. Reid .H. 0. E. Barker Haiti ... Clovis Desinor .Antonio Andr6 Honduras ... Manuel Acosta Bonilla .Ricardo Z6higa Augustinus Iceland ... Gylfi Gislason .Magnus J6nsson India .. ... 1. G. Patel(l) .C. S. Swaminathan(l) Indonesia .. ... Ali Wardhana. Doeana Koesoemohardja Iran ... Jamshid Amouzegar .Jahangir Amuzegar Iraq ... Amin Abdul Karim Kalamchi .Sa'adi Ibrahim Ireland ... Charles J. Haughey .C. H. Murray Israel ... .... David Horowitz .Jacob Arnon Italy ... Guido Carli .Paolo Baffi Ivory Coast ... Konan Bedi .Mohamed Diawara Jamaica ... Edward Seaga .G. Arthur Brown Japan ... Takeo Fukuda .Makoto Usami Jordan ... Hatim S. Zu'bi .Adel Shamayleh Kenya ... J. S. Gichuru .John Njoroge Michuki Korea ... Jong Ryul Whang .Jin Soo Suh Kuwait . . . Abdul Rahman Salim Al-Ateeqi .Abdiatif Y. Al-Hamad (continued) 51 Governors and Alternates (continued) Appendix F June 30, 1969 Member Governor Alternate Lebanon ............. Khalil Salem ................. Raja Himadeh Liberia ............. J. Milton W eeks ................. Cyril Bright Libya ............. Giuma Saleh El-Turki ................. K. M. Sherlala Luxembourg ............. Pierre Werner ................. Albert Dondelinger Malagasy Republic ............. Rakotovao Raison ................. Raymond Randriamandranto Malawi ..... . Aleke K. Banda K. J. Barnes Malaysia .......,,.. Ali bin Haji Ahmad(l) . Mohamed Sharif bin Abdul Samad Mauritania ...... Moktar Ould Haiba . ............. Mamadou Cissoko Mauritius ...... Veerasamy Ringadoo . Ramaswamy Pyndiah(l) Mexico ...... Antonio Ortiz Mena . Jose Hernandez Delgado Morocco ...... Mamoun Tahiri . Mohamed Benkirane Nepal ........ Kirti Nidhi Bista . . .......... Bhekh Bahadur Thapa Netherlands ........ H. J. Witteveen . . .......... J. H. 0. graaf van den Bosch New Zealand ........ H. G. Lang . . .......... C. F. Sproulell) Nicaragua ...... Guillermo Sevilla-Sacasa . ............ Juan Jose Martinez L. Nigeria ....0 ,. Awolowo . . Abdul Aziz Atta Norway .... KAre Willoch . .Christian Brinch Pakistan .... Ghulam lshaq Khan. M. Majid Ali Panama .... , ,, Jose Antonio de la Ossa ................. Ram6n Garcia Paraguay ............ , Cesar Romeo Acosta . .Oscar Stark Rivarola Peru ....... Fernando Berckemeyer . ............ Tulio De Andrea Philippines ........ Eduardo Z. Romualdez . ............. Roberto S. Benedicto Portugal Joao Augusto Dias Rosas . ........... Luis M. Teixeira Pinto Saudi Arabia .............. Ahmed Zaki Saad Senegal ..........., .Abdou Diouf ... .. .... Hamet Diop Sierra Leone .M. S. Forna .............................. Elkanah Laurence Coker Singapore ....... ........ Goh Keng Swee ............. Hon Sui Sen Somalia ........ Sufi Omer Mohamed . .Giuseppe Morasca South Africa ........ Nicolaas Diederichs ,... . ....... Theunis Willem de Jongh Spain ........ Juan Jose Espinosa . . . Mariano Navarro Rubio Sudan ........ Mohamed El Makkawi Mustafa .Mahdi Ahmed Sweden .... G. E. Strang . . ........ Krister Wickman Syrian Arab Republic .......... Nour Alla Nour Allah . .............. Ammar Jammal Tanzania .,. ... P. Bomani J. D. Namfua Thailand ................. Serm Vinicchayakul ..................... Bisudhi Nimmanahaeminda Togo ................. Boukari Djobo ... Jean Tevi Tunisia ................. Ahmed Ben Salah ... Ali Zouaoui Turkey ................. Cihat Bilgehan ... Kemal Cantork Uganda ................... Laurence Kalule-Settala , E. B. Wakhweya United Arab Republic .......... Hassan Abbas Zaki. Hamed Abdel Latif El Sayeh United Kingdom ............... Sir Leslie O'Brien ........................ Sir Douglas Allen United States ......... David M. Kennedy Uruguay ......... Cesar Charlone Venezuela ................. Rafael Alfonzo Ravard ...Pedro Miguel Pareles Viet-Nam . . ......................... Nguyen Van Dong Yugoslavia ........... .. Janko Smole .............., llija Marianovic Zambia .............. ......... V. S. Musakanya E. G. Kasonde Ill Appointment effective after June 30, 1969. 52 Directors and Alternates Appendix G and their Voting Power June 30, 1969 Director Alternate Casting votes of Total votes Appointed Covey T. Oliver . ............ Emmett J. Rice .............. United States .......................................... 35,418 E. W. Maude ................. M. P. J. Lynch .............. United Kingdom .................................. . 14,650 Georges Plescoff . .......... Jean P. Carriere ............. France .............................................. 6,065 S. Jagannathan . . ............. M. R. Shroff ................. India ............................................. . 4,681 Ernst vom Hofe . ............... Jorg Jaeckel ................ Germany ......................................... .... 3,905 Elected Reignson C. Chen . . C. L. Chow .................. China, Korea, Viet-Nam ................................ 5,209 (China) (China) Patrick M. Reid . ............ A. Roy MacMillan ........... Canada, Guyana, Ireland, Jamaica ..................... 5,169 (Canada) (Canada) S. Osman Ali . . ...... Abdol Ali Jahanshahi ....... Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, (Pakistan) (Iran) Saudi Arabia, Syrian Arab Republic, United Arab Republic ................ 5,022 J. 0. Stone . ............. A. W. Young ................ Australia, New Zealand, South Africa ................. 4,996 (Australia) (New Zealand) Hideo Suzuki . ............ H. Jinadasa Samarakkody .... Burma, Ceylon, Japan, Nepal, Singapore, Thailand ..... 4,972 (Japan) (Ceylon) Giorgio Rota . ............. Juan Moro .................. Greece, Italy, Portugal, Spain .......................... 4,822 (Italy) (Spain) Pieter Lieftinck . ............ Vladimir Ceric ............... Cyprus, Israel, Netherlands, Yugoslavia ................ 4,770 (Netherlands) (Yugoslavia) Andre van Campenhout ........ Friedrich T. Krieger .......... Austria, Belgium, Luxembourg, Turkey ................. 4,633 (Belgium) (Austria) Christopher Kahangi ........... Donatien Bihute ........... Ethiopia, Kenya, Liberia, Malawi, Nigeria, Sierra Leone, (Tanzania) (Burundi) Sudan, Tanzania, Uganda, Zambia 4,109 Erik L. Karlsson ............. Erik Hauge .................. Denmark, Finland, Iceland, Norway, Sweden ............ 4,097 (Sweden) (Denmark) Abderrahman Tazi ............. Mohammed Younos Rafik .... Afghanistan, Ghana, Indonesia, Libya, Malaysia, (Morocco) (Afghanistan) Morocco .3,715 Luis Machado ......... Arnoldo Ramirez-Eva ........ Costa Rica, El Salvador, Guatemala, Haiti, Honduras, (Cuba) (Nicaragua) Mexico, Nicaragua, Panama, Peru, Venezuela .3,629 Angel R. Caram ............... Abelardo Brugada Saldivar .... Argentina, Bolivia, Chile, Paraguay, Uruguay ........... 3,549 (Argentina) (Paraguay) Virgilio Barco ......... Oscar Alviar-Ramirez ........ Brazil, Colombia, Dominican Republic, Ecuador, (Colombia) (Colombia) Philippines .3,024 Mohamed Nassim Kochman .. Michel Bako ........ I vory Coast, Malagasy Republic, Mauritania, Mauritius, (Mauritania) (Chad) Senegal, Somalia, Togo .2,472 In addition to the Alternates shown in the foregoing list, the following also served as Alternate after October 31, 1968: Alternate Director End of period of service S. Guhan ............ November 5,1968 (India) Maung Gyi ............ November 7, 1968 (Burma) Alfredo Valencia .............January 15, 1969 (Peru) Zoran Zagar ............ January 22, 1969 (Yugoslavia) Jose Camacho ............ May 15, 1969 (Colombia) Note: Tunisia not formally represented by a Director. 53 Principal Officers Appendix H Robert S. McNamara* .... President Martin M. Rosen ......... Executive Vice President James S. Raj ............ Vice President R. B. J. Richards ........ General Counsel Eugene H. Rotberg* ...... Treasurer Francis R. Poore* ....... Controller M. M. Mendels* ......... Secretary *These officers hold the same position in the International Bank for Reconstruction and Development. 54 4~~~~~4 International Finance Corporation Headquarters / 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Telephone: EXecutive 3-6360 New York Office / 20 Exchange Place, New York, N.Y. 10005, U.S.A. Telephone: WHitehall 3-5400 European Office / 4 ave. d'lena, Paris 16e, France. Telephone: 553-2510 London Office / New Zealand House, Haymarket, London S.W. 1, England. Telephone: 930-3886 Cable Address / CORINTFIN