SIXH ANNIAL REPORT    1961-1962
21365
_ U
INTERNATIOXAL FINANCE CORPORATION






sixth annual report
contents
LETTER  OF TRANSMITTAL   .   .  .   .  .   .  .   .    2
PRINCIPAL  ACTIVITIES   .  .   .  .   .  .   .  .   .    3
FINANCIAL  RECORD   .   .  .   .  .   .  .   .  .   .   7
THE YEAR'S INVESTMENTS   .  .   .  .   .  .   .  .    8
FINANCIAI STATEMENTS
A     Balance Sheet  .  .   .  .   .  .   .  .   .   .   16
B     Comparative Statement of Income and Expenses .  .   17
C     Statement of Operational Investments
and Underwriting Commitments . . . . .18
D     Notes to Financial Statements .24
OPINION  OF INDEPENDENT AUDITOR   .  .   .  .   .  25
OTHER APPENDICES
E     Subscriptions to Capital Stock and Voting Power        26
F   Governors and Alternates  .            .27
G     Directors and Alternates and their Voting Power        28
H     Summary of Commitments  .   .  .  .  .   .  .  29
I Officers  .                      .31



INFLRNAIION,1A         T INAN(AI   CORPOKA 1ION
1818 H Street, N. W.
Wlashington 25, D. C.
September 18, 1962
MIY DEAR MR. CHAIRMfAN:
The Sixth Annual Report of the International Finance
Corporation for the period July 1, 1961 to June 30, 1962, is
submitted to the Board of Governors by the Board of Direc-
tors herewith in accordance with Section 8 of the By-Laws of
the Corporation.
Sincerely yours,
EUGENE R. BLACK
PRESIDENT
Chairman, Board of Governors
International Finance Corporation



PRINCIPAL ACTiVITIES
The International Finance Corporation made nine investment com-
mitments totaling $18.4 million and one underwriting commitment of
$2.9 million during the year for the financing of productive private enter-
prises in seven different countries. IFC'S investments were components of
larger financing transactions, usually helping to complete projects in which
entrepreneurs and other investors, both domestic and international, had
provided substantially more than the IFC commitments.
An important development of the year was the approval by the Board
of Governors of an amendment to the Articles of Agreement removing
the restriction on equity investment and enabling the Corporation to make
its first investments in equity form and to agree to participate for the first
time in an underwriting of common shares.
There were several other departures during the year. A new Develop-
ment Bank Services Department was organized and other changes were
made in staff organization. An international advisory panel comprising
five prominent investment bankers was created. And IFC completed in two
of its member countries its first studies of the possibilities of developing
particular industries.
New Investments
In Mexico, IFC formed a syndicate to underwrite an issue of capital
shares in the leading private steel company in the country and also pur-
chased a block of shares outright; IFC'S initial commitment, for both, came
to about $4 million. In Colombia, IFC made two investments of $2 million
each to two development finance corporations; part of each investment
subsequently was converted into capital stock, the first which IFC acquired.
In Argentina, IFC participated to the extent of $3,050,000 in a new
3



petrochemical project. In Peru, a cement company undertaking an expan-
sion received an IFC investment of $2.4 million.
In Pakistan, IFC agreed to invest $4 million in a new cement plant.
The investment was made in association with the Pakistan Industrial
Credit and Investment Corporation (Picic) which has received loans from
the World Bank. The new plant will provide cement to meet Pakistan's
increased needs arising from the Indus Basin works which are being car-
ried out as a result of the settlement of the Indus Basin water dispute,
reached with the help of the good offices of the World Bank.
IFC made its first investment commitments in Spain and in Greece
this year. In Spain, IFC assisted a manufacturer of electrical components
for automobiles to expand operations by a $3 million investment partly in
loan form and partly in the direct purchase of capital shares. In Greece,
IFC made a loan commitment of $600,000 to a new company which will
produce fertilizer. These investments are reviewed in detail subsequently
in this report.
Management and Administration
Mr. Robert L. Garner retired in October as President of IFC. As
Vice President of the World Bank, Mr. Garner was active in the forma-
tion of IFC as a Bank affiliate and became its first President in 1956. On
Mr. Garner's resignation, Mr. Eugene R. Black, who had been Chairman
of the Board, assumed the presidency of IFC in addition to the presidency
of the World Bank and the International Development Association. In
the meantime, Mr. Martin M. Rosen already had assumed his duties as
Executive Vice President of IFC, as mentioned in the last annual report.
Responsibility for investment operations was divided between two
new departments on a geographical basis. The Hon. Leonard Hall was
appointed Director of Investments for Africa, Asia and the Middle East.
Mr. Neil J. Paterson was appointed Director of Investments for Latin
America, Europe and Australasia.
4



Dr. A. G. El Emary was appointed Director of the Development
Bank Services Department. This department is responsible for taking the
lead in the consideration of all proposals for financial and technical assist-
ance to industrial development banks by the World Bank and its affiliates,
IFC and the International Development Association (IDA).
Mr. Charles F. Herrmeyer was appointed Financial and Accounting
Adviser and Mr. G. C. Wishart Assistant to Management. The Bank's
Director of Information became Director of Information of lFC; and IFC
continued to depend on the Bank's staff for a wide range of administrative
and other services.
IFC's Advisers
In February Mr. Black announced that five distinguished investment
bankers had agreed to serve, without compensation, as advisers to IFC.
The five are Dr. Hermann J. Abs, Director, Deutsche Bank A.G., Frank-
furt; Viscount Harcourt, Managing Director, Morgan, Grenfell & Com-
pany, London; Mr. Andre Meyer, Senior Partner, Lazard Freres &
Company, New York; Baron Guy de Rothschild, a partner in de Rothschild
Freres, Paris; and Mr. George D. Woods, Chairman of The First Boston
Corporation, New York.
From time to time throughout the fiscal year these bankers provided
counsel on investment problems. Their advice enabled IFC, as a develop-
ment institution, to have the benefit of the private investor's judgment on
investments. Mr. Woods, in addition, has given assistance in efforts being
made by IFC to advise in the organizing of a privately-owned development
bank in the Philippines.
Surveys
IFC completed a survey of the potentialities for private investment in
the chemical industry of Iran. The survey, made for the Plan Organiza-
tion of Iran and the Industrial Mining and Development Bank of Iran,
was published by IFC in September. In Venezuela, IFC collaborated with
5



Corporacion de Fomento, a government agency which supports private
industrial development, in making a feasibility study of the potentialities
for the development of meat packing and related industries.
New Member Countries
Five countries joined IFC during the year, including the Dominican
Republic which rejoined. One country, Indonesia, withdrew in February.
Net effect of the changes in membership was a reduction of $107,000 in
subscribed capital. At the close of the year 63 countries were members of
IFC and their paid-in subscriptions totaled $96,469,000. The new member
countries are:
Country                   Subscription     Date of Joining
CYPRUS ........................... $ 83,000        March 1962
DOMINICAN REPUBLIC .22,000                         October 1961
LIBERIA ....                       83,000          March 1962
NEW ZEALAND .923,000                               August 1961
SYRIAN ARAB REPUBLIC .72,000                       June 1962
6



RESOURCES
r- -                             140
* SALES AND REPAYMENTS
0     EARNINGS AND PROFITS    1
*  CAPITAL PAID IN
F I NA N C IAL  RECO RD
80
IFC'S total funds available for operational ac-           r                                 60
tivities increased during the year by $4.5 million
to a cumulative total of $120.7 million.                                                       40
These were derived as follows:                                                              20
Fiscal Year                            '5  '58   '59  '60   '61  '62
1961-62     Cumulative
(in millions)
Earnings  ........... $2.6           $ 12.8                 COMMITMENTS
Sales of investments ...  1.2          1 0.1                                                70
Profits on sales of                                             COMMITMENTS
investments .........    1              .5                 S DISBURSEMENTS                6   0
Repayments on invest-
ments ............ .   .7              .8                                                 so
Paid-in capital .....  .  -.1          96.5               -                                  40
$4.5         $120.7                                  _
30
New investment commitments during the year                            _     a
were $18.4 million with an additional under-
writing commitment of $2.9 million.                                                            10
The  cumulative  total of  investment com-                   '51 8   '59   m    '    '
mitments (net of cancellations) reached $62.5
million plus the $2.9 million underwriting com-
mitment.
Uncommitted funds available for operational
activities as of June 30, 1962 declined to $55.3             FUNDS  AVAILABLE
million.
140
Net income for the year was $2.6 million.                    . AVAILABLE FOR INVESTMENT
* DISBURSED OR  COMMITTED      12
Disbursements were $11.9 million, bringing
the cumulative total of funds disbursed as of                                                  10D
June 30, 1962 to approximately $45 million.                                                    80
Ein    ~~~~~~~~~60
40
20
Chart figures are as of June 30,
expressed in millions of U.S. dollars     '57   '58   '59   '60   '61  '62



THE YEAR'S INVESTMENTS
ARGENTINA
$3,050,O0O--Pasa, Petroquimica Argentina. S.A.I.C. (PASA)
With this investment, IFc helped to complete the financing for a new $72
million petrochemical industry for Argentina. Its commitment forms part
of an $18.5 million Class B debenture issue which was placed with a
group of United States and European investment institutions by Chase
International Investment Corporation and Lazard Freres & Company, both
of New York.
PASA is establishing a petrochemical complex at San Lorenzo, about
230 miles from Buenos Aires on the Parana River. Installations will
include a catalytic reformer and units to make benzene, styrene, butadiene,
aviation-grade alkylate, synthetic rubbers and other products including
carbon black. The new industry is expected to be of substantial benefit to
the economy of Argentina by producing materials previously imported and
so creating considerable savings in foreign exchange. PASA will utilize
Argentina's ample resources of natural gas and employ about 700 people.
Capital requirements for the project were arranged by the five spon-
sors-Continental Oil Company, Cities Service Company, United States
Rubber Company, Fish International Corporation and Witco Chemical
Company, Inc.-as follows:
$18.5 million cash by the sponsors for preferred and common
stock;
$30 million in Class A debentures (suppliers' credits);
$18.5 million Class B subordinated debentures to which are
attached warrants for the purchase at par, up to 1974, of a
15%7 stock interest; and
$5 million in short-term working capital loans.
The sponsoring companies intend to offer a portion of the common
stock of PASA to Argentine investors as soon as feasible after completion
of construction and the establishment of profitable operations.
8



COLOMBIA
$2 million-Corporacion Financiera Colombiana de
Desarrollo Industrial (Bogota)
$2 million-Corporacion Financiera Nacional (Medellin)
In August IFC made its first investments in local development institutions
through commitments of $2 million to each of these private financing
corporations which were established in 1958 and 1959 respectively by
Colombian banks, insurance companies, industrial enterprises and indi-
viduals. The corporations endeavor to assist the development of private
industry and to stimulate the growth of the Colombian capital market.
The availability of IFC funds has enabled them to expand their activities
to include equity and long-term financing and underwriting. They consult
with IFC on their larger investments and keep IFC advised on their
operations.
IFC's investment is in the form of notes which are fully convertible
into common stock at par and which bear interest equal to the dividends
paid on capital stock. IFC has converted Col$7 million of its holding of
the notes of each corporation into the common stock of the respective
corporations. The conversions resulted in the first holdings of common
stock by IFC after the Charter change permitting such holdings had become
effective.
GREECE
$600,000-Aevol Industrial Company of Organic Fertilizers, S.A. (AEVOL)
This was IFC'S first commitment to invest in Greece. The enterprise is
sponsored by Greek, Italian and United States interests and is estimated
to cost $1,330,000. IFC'S participation is to be represented by unsecured
dollar notes at 71/2%, interest, repayable over ten years, and a small interest
in AEVOL'S common stock.
AEVOL will manufacture organic fertilizer at Salonika, converting
municipal refuse through bacterial decomposition by a process developed
by Earp Laboratories, a United States corporation. The process is used in
West Germany, Italy, Mexico and Switzerland. AEVOL'S plant is being
designed and engineered by Fertilla, S.p.A., an Italian company which
operates a similar plant. The new plant is expected to go into production
9



in 1963. It is scheduled to produce about 40,000 metric tons of fertilizer
per year when it is in full production.
Greek soils generally are low in organic matter and the country's
sources of organic fertilizer are limited. AEVOL will expand the supply
of organic fertilizer in Greece while disposing of the refuse of one of
its largest cities.
£ -      f  -cl     u d-ig i    lderw-  :g -   , ,--cnmp3> r  FL.d,dcI-a
r e   s  <e     Aer .. Y M' - e S  A     NriDOP A,
In June IFC engaged in its first underwriting, in Mexico. IFC formed a
syndicate with Credito Bursatil, S.A., a Mexican investment house, to
underwrite an issue of capital shares of the largest private steel company
in the country, FUNDIDORA. The underwriting assisted the Company to
obtain financing to complete a program to expand steel production from
200,000 to 500,000 ingot tons annually. Handelsfinanz A.G., Zurich;
Kuhn, Loeb & Co., Incorporated, New York; and Morgan Guaranty
International Finance Corporation, New York joined IFC as participants,
taking up about one-third of the IFC underwriting commitment. The
offering to the shareholders totaled the equivalent of about $4 million.
FUNDIDORA manufactures a wide range of steel products; together
with its subsidiaries, it forms a vertically integrated steel operation largely
self-sufficient in raw materials and able to process a substantial part of its
production into an advanced stage. For the last 45 years, FUNDIDORA has
had a record of profitable operations. The Company undertook its pro-
gram to increase steel ingot capacity and to enter into the production of
flat steel about six years ago at a cost estimated at almost $100 million.
Financing has been provided tlhrouglh previous capital increases, retained
earnings and substantial borrowings.
FUNDIDORA shares are listed on the Mexico City stock exchange and
are held by an estimated 700 shareholders, mostly local. The Company is
closely associated with Banco Nacional de Mexico, S.A., the largest Mexi-
can private bank.
The new issue, composed of 458,333 shares, was offered to share-
holders, on a basis of one for six already held, for a period of about two
10



weeks starting June 20. That part not subscribed was to be taken up by
the syndicate and immediately offered for sale to investors in Mexico,
Latin America, Canada and Europe. IFC's commitment in the syndicate,
together with its participants, was 75%g; Credito Bursatil's was 25 %.
The underwriting was one of the largest ever undertaken in Mexico.
In addition, IFC agreed to purchase outright 128,000 shares of FUN-
DIDORA common stock for $1.1 million.
PAKISTAN
$4 million-IsmaiI Cement Industries, Ltd. (ISMAIL)
By completing an agreement in December to invest $4 million in this
Pakistan cement company, IFC linked itself with two activities supported
by World Bank loans.
ISMAIL was organized in 1960 in anticipation of an increased demand
for cement resulting from the Indus Basin project. The World Bank
administers the Indus Basin Development Fund with estimated total
resources of $894 million, including a World Bank loan of $90 million.
IFC's investment in the Company was made in association with the
Pakistan Industrial Credit and Investment Corporation (Picic), which
provided an additional loan of $3 million. PIcic's share came from a
World Bank loan. Together the IFC and PIcic loans are financing ISMAIL's
foreign exchange requirements. Total cost of the ISMAIL enterprise is
estimated at the equivalent of $12,750,000.
IFC's investment is in two parts: one of $2,750,000 in dollar deben-
tures bearing 71/2% interest, maturing between 1966-73; and the other
of $1,250,000 in convertible dollar income notes entitled to income (in
rupees) equal to dividends on an equivalent amount of common stock.
The dollar income notes mature between 1974 and 1976, and are fully
convertible into common shares at par at any time before maturity. The
Bank of America National Trust and Savings Association, San Francisco,
is participating in the IFC investment to the extent of $172,000.
Picic's commitment of $3 million will be in debentures bearing
71/2% interest, maturing between 1966 and 1973 and repayable in rupees
with a maintenance of dollar value clause. Picic also will participate in
the equity of the Company.
11



The balance of the financing was provided by the sponsors and by
a public issue of shares in Pakistan amounting to 11 million Pakistani
rupees earlier this year. The issue was oversubscribed.
ISMAIL's new plant near Gharibw7al, West Pakistan, will have a
capacity of over 400,000 tons of cement a year. Construction started upon
completion of the financial arrangements and is expected to be completed
about mid-1963. Rail and road links to the site are being constructed by
the Government of Pakistan.
PERU
$2.4 million-Cemento Andino, S.A.
With the completion in December of arrangements for an IFC investment
of $2.4 million, the Peruvian company of Cemento Andino has under-
taken, together with additional funds, an expansion and improvement of
its manufacturing operations.
IFC'S investment is represented by unsecured notes bearing 71 /2 /k
interest, maturing between 1968 and 1973, payable in dollars; IFC received
the right to subscribe to shares of the Company's common stock. The
principal security-holders in Cemento Andino are Peruvians. Shareholders
and debenture holders in North America are represented by the New York
investment banking houses of Lehman Brothers and Lazard Freres &
Company.
With the help of this financing, the Company will more than double
its present capacity and will produce also special types of cement not
previously manufactured in Peru. Its plant is in the Andes at an altitude
of 13,000 feet, approximately 140 miles by road east of Lima.
$1 97,290-Fertilizantes Sinteticos, S.A. (FERTISA)-SuppfementaI
In 1959 IFC made a commitment to invest $3,886,000 in FERTISA. After
participations IFC's net investment became $1,622,000. This year FERTISA
found it necessary to refinance its operations in order to continue produc-
tion of synthetic ammonia and fertilizers.
Meetings of representatives of FERTISA and its principal stockholders
and creditors, including IFC'S participants, were held in Paris in Novem-
ber 1961 and in Washington in February 1962 on the initiative of IFC.
Three steps were agreed upon: a readjustment of a substantial portion of
12



FERTISA'S long-term debt; the funding of certain interest payments and
short-term obligations; and the raising of $1,625,000 in new capital. The
reorganization was carried out on May 17, 1962. About $400,000 of the
new capital is being used for modifications and additions of equipment
to increase the capacity of the plant by approximately 20%c, opening the
way for improvement in earning ability.
As its contribution to the new capital being raised, IFC made a supple-
mental investment of $197,290, bringing its net investment in FERTISA
to $1,819,290.
SPAIN
$3 million-Fabrica Espanola Magnetos, S.A. (FEMSA)
In February IFC invested $3 million in FEMSA, the leading Spanish manu-
facturer of automotive electrical equipment. The investment consists of
a loan of $2.5 million and the purchase of 30 million pesetas (approxi-
mately $500,000) in common shares, amounting to approximately 13%
of the Company's share capital. This was the first IFC investment which
included the purchase of capital shares as part of the initial commitment
and was also IFC'S first investment in Spain.
FEMSA, a family business, needed capital to undertake an expansion
of a size that could not be financed by retained earnings, as in the past.
The Company was unable to borrow long-term capital domestically in the
amount needed and a public issue of stock did not seem practical. IFC was
able to make a loan appropriate to FEMSA'S capital structure and to provide
the remaining funds required by purchasing, at a reasonable price, the
Company's capital shares thereby strengthening its equity position. This
was also a first step towards broadening the Company's ownership.
Bankers International Financing Company, Inc., New York, partici-
pated in the investment to the extent of $300,000, representing 10% of
the loan portion and 10%-c of the equity. Subsequently, The Dresdner
Bank, Frankfurt, purchased a participation equivalent to $148,500, being
the balance of the first maturity of the IFC loan.
IFC'S investment is helping FEMSA to undertake the expansion of its
plant in Madrid and to construct a new factory at Treto, in the Province
of Santander.
13



Founded in 1950, the Company has grown rapidly and employs some
1,800 persons. Under licensing agreements, the Company manufactures
electrical assemblies (including motors and generators) for cars, trucks,
tractors, motorcycles and industrial and aviation engines. It expects an
increasing demand for its products because of expanding markets for
motor vehicles and engines in Spain.
14



a p p e n d i c e s
FINANCIAL STATEMENTS
Balance Sheet.                                        A
Comparative Statement of Income and Expenses .  .   B
Statement of Operational Investments
and Underwriting Commitments   .  .   .  .   C
Notes to Financial Statements.                       D
OPINION OF INDEPENDENT AUDITOR
OTHER APPENDICES
Subscriptions to Capital Stock and Voting Power       E
Governors and Alternates.           .                 F
Directors and Alternates and their Voting Power       G
Summary of Commitments  .  .  .  .  .  .  .   H
Officers..                                            I
15



APPENDIX A
BALANCE SHEET
JUNE 30, 1962
EXPRESSED IN UNITED STATES CURRENCY-See Notes to Financial Statements, Appendix D
A S S   T S
DUE FROM BANKS .......................................$    281,983
INVESTMENTS
United States Government obligations (at cost or amortized
cost) Face amount $66,950,000 ......      .................  $ 66,878,148
Time deposits maturing within six months-United States
dollars ............................................          8,500,000
Accrued interest ...........,.,..............                     630,484    76,008,632
EFFECTIVE LOANS AND EQUITY INVESTMENTS HELD BY CORPO-
RATION (See Appendix C)-Note B
(Including undisbursed balance of $13,414,438)
Loans ............................................... $ 44,677,309
Equity (at cost) .......................................        3,188,566    47,865,875
ACCRUED INCOME ON LOANS, EQUITY INVESTMENTS AND UNDER-
WRITING COMMITMENTS-Note B ......................                             711,479
RECEIVABLE FROM PURCHASERS ON ACCOUNT OF LOANS AND
EQUITY INVESTMENTS AGREED TO BE SOLD
(Including undisbursed balance of $414,675) ............                      435,571
OTHER ASSETS ..........................................                             95,635
TOTAL ASSETS ...............................                         $125,399,175
LIABILITIES
Accounts payable and other liabilities ...................            S          190,249
Undisbursed balance of effective loans and equity invest-
ment agreements (See Appendix C)
Held by Corporation ..............................$ 13,414,438
Agreed to be sold .................................          414,675    13,829,113
Obligation for repurchase of shares of Cuba and Indonesia-
Note C                        ..                                             1,606,000
RESERVE AGAINST LOSSES-Note D              .......                              13,304,813
CAPITAL
Capital stock
Authorized 100,000 shares of $1,000 par value each
Subscribed 96.469 shares          ........                             96,469,000
OUTSTANDING UNDERWRITING COMMITMENTS-
Note E.... $2,942,500
TOTAL LIABILITIES. RESERVE AND
CAPITAL ...................................                       $125,399,175
16



APPENDIX B
COMPARATIVE STATEMENT OF INCOME AND EXPENSES
FOR THE FISCAL YEARS ENDED JUNE 30, 1961 AND JUNE 30, 1962
EXPRESSED IN UNITED STATES CURRENCY-See ANotes to Financial Statements, Appendix D
July 1-June 30
1960-1961         1961-1962
INCOME
Income from United States Government obligations and time
deposits........................$2,509, 156  $2,318,299
Income from loans, equity investments and underwriting com-
mitments ............................................                                  1,868,525         2,279,216
Other income ...........................................                                     -                   2,430
GROSS INCOME ..................................    $4,377,681                                 $4,599,945
EXPENSES
Administrative expenses:
Personal services ......................................    $1,161,127                                 $1,100,793
Contributions to staff benefits ..........................                               135,165            141,500
Fees and compensation ................................                                   149,982           141,988
Representation .......................................                                    32,436             29,235
Travel ...............................................                                   268,676           284,765
Supplies and material ..........                  .......................                  18,531            18,668
Office occupancy .....................................                                   103,595           121,104
Communication  services ...............................                                   51,739             54,222
Furniture and equipment ..............................                                    45,647             20,052
Books and library services .............................                                  15,923             18,117
Printing .............................................                                    23,360             30,459
Insurance ............................................                                      9,508             8,376
Other expenses .......................................                                        382                655
GRoss EXPENSES ................................    $2,016,071                                 $1,969,934
NET INCOME-Allocated to Reserve Against Losses-Note D ...  $2,361,610   $2,630,011
17



APPENDIX C
T A - FMENT OF OPERATONAL !NVESTMENTS
JUNE 30,
EXPRESSED IN UNITED STATES CURRENCY-
Original principal amount               Operational
COUNTR Y                                                     -     Outstanding    investments    Cancella-
and Obligor                          Operational  Underwriting   underwriting  not yet      tions and
investments  commitments  commitments    effective'    terminations
ARGENTINA
ACINDAR INDUSTRIA ARGENTINA
DE ACEROS. S.A .S.........               3,660,000    S    -         -                     $ 
PAPELERA RIO PARANA, S.A .            5 3,000,000               -                   -         3,000,000
FABRICA ARGENTINA DE
ENGRANAJES, S.A.I.C. ..... ........    1,500,000                     -        1,500,000         -
PASA, PETROQUIMICA
ARGENTINA, S.A.I.C . ...............    3,050,000      -             -
TOTAL ....................    11,210,000         -             -        1,500,000    3,000,000
AUSTRALIA
DUNCAN'S HOLDINGS, LTD ..........        660,000                                    -             -
RUBBERTEX (AUSTRALIA)
PROPRIETARY, LTD .     ... ......      315,000
TOTAL ....................       975,000
BRAZIL
SIEMENS DO BRASIL CIA.
DE ELETRICIDADE .. ...............    2,000,000        -             -            -         1,000,000
OL1NKRAFT, S.A. CELULOSE E PAPEL ....   1,200,000        -             -            -          243,000
D.L.R. PLASTICOS DO BRASIL, S.A .......  450,000         -                          - -           -
WVILLYS-OVERLAND DO BRASIL, S.A.,
INDUSTRIA E COMERCIO  ..........    2,450,000          -             -            -             -
COMPANHIA MINEIRA DE
CIMENTO PORTLAND, S.A ............    1,200,000       --
CHAMPION CELULOSE, S.A .............    4,000,000        -                          - -           -
TOTAL ...            .         11.300,000        -             -            -        1,243,000
CHILE
EMPRESA MINERA DE MANTOS
BLANCOS, S.A ......... ...........    3,100,000
COMPANIA MOLINOS Y FIDEOS CAROZZI       1,500,000
CEMENTOS BIO-BIO, S.A  ............     1,200,000
TOTAL ....................      5,800,000
COLOMBIA
LAMINAS DEL CARIBE, S.A .............     500,000
FABRICA DE GALLETAS Y
CONFITES NOEL. S.A ................   1.,000,000
ENVASES COLOMBIANOS, S.A ............     700,000
BERRY, SELVEY Y CIA, S.A .............    170,000
ELECTROMANUFACTURAS, S.A ..........       500,000
CORPORACION FINANCIERA COLOMBIANA
DE DESARROLLO INDUSTRIAL ......       2,023,730
CORPORACION FINANCIERA NACIONAL...    2,000,000
TOTAL ......... ..........    6,893,730
EL SALVADOR
INDUSTRIAS TEXTILES, S.A .............    140,000
18



APPENDIX C
AND UNDERWRITING COMMITMENTS
1 962
See Notes to Financial Statements, Appendix D
Undisbursed
balance of
Principal     Loans and       Loans                  effective loans           Held by Corporation
repayments    equity sold     converted     Principal   and equity
to         or agreed       into          amount    investment                                  Total loans
Corporation    to be sold      equity       disbursed   agreements2     Loans         Equity       and equity
$   -  $  -  $    -  $3,660,000   $        3,660,000    $    -       $3,660,000
-  -  -    305,000     2,745,000      3,050,000         -         3,050,000
-  -  -  3,965,000     2,745,000      6,710,000         -         6,710,000
100,000         -             -           660,000          -          560,000          -          560,000
42,750         -             -           315,000          -          272,250          -          272,250
142,750         -             -           975,000         -           832,250          -          832,250
-                                     I -  1,000,000    -         1,000,000                   1,000,000
-          957,000                     957,000          -             -                           -
25,000         -             -           450,000          -          425,000          -          425,000
-             -                       2,450,000         -         2,450,000         -         2,450,000
-        1,200,000          -         1,200,000         -             -             -             -
-        3,175,000          -        4,000,000          -          825,000          -           825,000
25,000     5,332,000         -        10,057,000          -        4,700,000          -         4,700,000
-          250,000          -         3,100,000         -         2,850,000         -         2,850,000
*-            -             -         1,500,000         -         1,500,000         -         1,500,000
-             -             -         1,200,000         -         1,200,000         -         1,200,000
-          250,000          -        5,800,000          -         5,550,000         -         5,550,000
40,000         -             -           500,000          -          460,000          -          460,000
-             -             -         1,000,000         -         1,000,000         -         1,000,000
-          225,000          -          300,000       400,000       475,000        Note 3        475,000
-             -             -          170,000          -           170,000       Note 3        170,000
-             -             -          210,375       289,625       500,000          -           500,000
-             -          790,971       814,701      1,209,029     1,209,029       814,701     2,023,730
-             -          797,465       911,295      1,088,705     1,202,535       797,465     2,000,000
40,000       225,000     1,588,436     3,906,371     2,987,359     5,016,564      1,612,166     6,628,730
-             -             -          140,000          -           140,000         -           140,000
19



APPENDIX C
STATEMENT OF OPERATIONAL INVESTMENTS
JUNE 30,
EXPRESSED IN UNITED STATES CURRENCY-
Co UNTR ~~~~~~~~~~              Original principal amount                Operational
CO UNTR Y                                  Original principal amount  Outstanding    investments   Cancella-
and Obligor                            Operational   Underwriting    underwriting  not yet     lions and
investments  commitments  commitments    effectivel    terminations
FINLAND
OY KUTOMOTUOTE AB, TRICOL OY, TOLI OY    $  156,000    $    -                                   $
RAUMA-REPOLA OY ..... ............       1,875,000         --
TOTAL ........ ............     2,031,000          -
GREECE
AEVOL INDUSTRIAL COMPANY
OF ORGANIC FERTILIZERS, S.A ........     600,000         -             -          600,000
GUATEMALA
INDUSTRIA HARINERA
GUATEMALTECA, S.A ................       200,000         -             -             -
INDIA
REPUBLIC FORGE COMPANY, LTD ........     1,500,000         -             -             -         1,500,000
KIRLOSKAR OIL ENGINES, LTD ..........      850,000         -             -             -          850,000
ASSAM SILLIMANITE, LTD ..............    1,365,000         -             -         1,365,000         -
KSB PUMPS, LTD .....................       210,000         -             -          210,000          -
TOTAL ....................       3,925,000         -             -        1,575,000     2,350,000
IRAN
SHERKATE SAHAMI KAHKASHAN ........         300,000         -             -             -             -
ITALY
MAGRINI MERIDIONALE, S.P.A ..........      960,000         -             -             -
JAMAICA
JAMAICA PRE-MIX, LTD ................      224,000         -             -             -             -
MEXICO
INDUSTRIAS PERFECT CIRCLE, S.A .......     800,000         -             -             -          200,000
BRISTOL DE MEXICO, S.A ...............     520,000         -             -             -             -
ACERO SOLAR, S.A ....................      280,000                -             -             -
COMPANIA FUNDIDORA DE FIERRO Y
ACERO DE MONTERREY, S.A ..      .      1,126,400     2,942,500     2,942,5004        -             -
TOTAL ....................    2,726,400       2,942,500     2,942,500          -          200,000
PAKISTAN
STEEL CORPORATION OF PAKISTAN, LTD..       630,000                       -             -             -
ADAMJEE INDUSTRIES, LTD .............      750,000         -             -             -              295
ISMAIL CEMENT INDUSTRIES, LTD .     .......    4,000,000   -             -             -             -
TOTAL ....................       5,380,000         -             -             -             295
20



APPENDIX C
AND UNDERWRITING COMMITMENTS (CONTINUED)
1962
See Notes to Financial Statements, Appendix D
Undisbursed
balance of
Principal     Loans and        Loans                   effective loans            Held by Corporation
repayments     equity sold     converted     Principal    and equity
to          or agreed       into          amount    investment                                    Total loans
Corporation    to be sold       equity        disbursed   agreements2     Loans          Equity       and equity
$   -       $      -        $    -       $156,000    $    -           $   156,000    $    -          $156,000
330,000       975,000          -          1,875,000          -          570,000           -           570,000
330,000       975,000          -         2,031,000           -           726,000          -           726,000
-  -       200,000           -           200,000          -           200,000
-  -       300,000           -           300,000          -           300,000
-             -           960,000          -           960,000          -           960,000
-             -              -           224,000          -           224,000          -           224,000
80,000          -             -           600,000           -           520,000          -           520,000
160,000          -             -           520,000           -           360,000          -           360,000
-             -              -           280,000          -           280,000          -           280,000
-           Note 4           -             -          1,126,400          -         1,126,400      1,126,400
240,000          -              -         1,400,000     1,126,400      1,160,000      1,126,400     2,286,400
-             -              -           630,000          -           630,000          -           630,000
-             -           749,705          -           749,705           -          749.705
172,000          -            30,396     3,969,604      3,828,000          -         3,828,000
172,000          -         1,410,101     3,969,604      5,207,705          -         5,207,705
21



APPENDIX C
M~T --v-F -l - A7o :RT ONAL INVESTMENTS
JUNE 30,
EXPRESSED IN UNITED STATES CURRENCY-
CO UNTR Y.                                  Original principal amount                  Operational
CO UNTR Y                                            ~~~~~~~~~~~~~~Outstanding    investments  Cancella-
and Obligor                             Operational   Underwriting    underwriting   not yet      tions and
investments  commitments  commitments       effective'    terminations
PERU
INDUSTRIAS REUNIDAS, S.A ............   $  250,000    s    -           $    -        $    -        $    -
LUREN, S.A. AND LADRILLOS
CALCAREOS, S.A     .       .........      280,000          -                            -              -
DURISOL DEL PERU, S.A    .     .......      300,000          -              -             -
FERTILIZANTES SINTETICOS, S.A . .....      4,083,290         -              -             -              -
CEMENTO ANDINO, S.A    .      ........     2,400,000         -                            -              -
TOTAL .....     ...............   7,313,290          -             -             -              -
SPAIN
FABRICA ESPANOLA MAGNETOS, S.A .....       3,000,000
TANGANYIKA
KILOMBERO SUGAR COMPANY, LTD ......        2,800,000
THAILAND
THE CONCRETE PRODUCTS AND
AGGREGATE COMPANY, LTD ..........         300,000
VENEZUELA
SIDERURGICA VENEZOLANA, S.A ........       3,000,000                               - -    -              -
DIABLITOS VENEZOLANOS, C.A ..........        500,000          -             -             -           324,000
TOTAL ....................        3,500,000                        -              -          324,000
GRAND TOTAL .............  $69,578,420    $2,942,500    $2,942,500    $3,675,000    $7,1]7,295
Note I - In these cases, certain legal formalities must be completed and other conditions fulfilled before
funds may be withdrawn on account of the investment.
Note 2- This includes $414,675 of effective loans and equity investment agreements which the Corporation
has agreed to sell.
Note 3 - In these cases, the Corporation has received equity shares at no cost.
Note 4 - See Note E - Appendix D.
22



APPENDIX C
AND UNDERWRITING COMMITMENTS (CONTINUED)
1 962
See Notes to Financial Statements, Appendix D
Undisbursed
balance of
Principal     Loans and       Loans                  efectve loans             Held by Corporation
repayments    equity sold     converted     Principal   and equity
to         or agreed        into         amount    investment                                  Total loans
Corporation    to be sold      equity       disbursed   agreements2     Loans         Equity       and equity
$  250,000   $      -       $250,000    S    -           $250,000
280,000         -           280,000          -          280,000
-  -          -          300,000          -          300,000          -           300,000
2,264,000         -         4,032,540        50,750     1,819,290          -        1,819,290
-             -          800,000      1,600,000     2,400,000         -         2,400,000
2,264,000         -         5,662,540     1,650,750     5,049,290          -        5,049,290
448,500         -         1,650,000     1,350,000     2,101,500       450,000      2,551,500
-  -          -        2,800,000          -         2,800,000       Note 3      2,800,000
300,000         -           300,000          -             -
-             -             -         3,000,000         -         3,000,000         -         3,000,000
-         176,000                     176,000                        -                           -
*          176,000          -         3,176,000         -         3,000,000         -         3,000,000
$777,750   $10,142,500    $1,588,436   $44,957,012   513,829,113   $44,677,309    $3,188,566   $47,865,875
SUMMARY OF CURRENCIES IN WHICI LOANS AND EQUITY INVESTMENTS HELD BY
CORPORATION ARE DENOMINATED
(EXPRESSED IN UNITED STATES CURRENCY)
Currency                                      Loans           Equity (at cost)
Colombian pesos   . . . . . . . . . . . $ 2,606,564                 $1,612,166
Italian  lire  .     .     .     .     .     .    .     .     .    .     .     .    .  480,000
Mexican pesos.                          . . .      180,000           1,126,400
Pounds sterling.                        . . .  1,400,000
Spanish pesetas . . . . . . . . . . . .              -                450,000
United States dollars  . . . . . . . . . .  40,010,745
$44,677,309        $3,188,566
23



APPENDIX D
NCTES TO FINANCIAL STATEMENTS
JUNE  30, 1 962
NOTE A                                              NOTE D
Amounts in currencies other than United States      Pursuant to action of the Directors, the net in-
dollars have been translated into United States     come of the Corporation has been allocated to a
dollars:                                            reserve against losses; and the future net income
(i) In the cases of Italian lire, Mexican pesos,  of the Corporation will, until further action by
Pounds sterling and Spanish pesetas, at the par  the Directors or the Board of Governors, be
values as specified in the "Schedule of Par       allocated to this reserve. During the fiscal year
Values", published by the International Mone-    this reserve has also been credited with $75,000
tary Fund:                                        representing net profit on sales of loans and equity
(ii) In the case of Colombian pesos, at the     investments. An amount of $10,500 in interest due
rates specified in the respective investment agree-  the Corporation on June 15, 1962, on an invest-
ments, or at the rates used by the Corporation    ment of $300,000, has not yet been received.
in acquiring such pesos. On this basis pesos have
been translated on an average at the rate of 8.77
to I United States dollar.
No representation is made that any currency held
by the Corporation is convertible into any other
currency at any rate or rates.                                       NOTE  E
By agreement dated June 19, 1962 the Corporation
and Credito Bursatil, S.A. (a subsidiary of Banco
Nacional de Mexico, S.A.) gave, in consideration
N O T E B                         of certain commissions, standby commitments in
The principal disbursed and outstanding on effec-   respect of a rights offering to stockholders by
tive loans and equity investments and the accruals  Compania Fundidora de Fierro  y Acero de
for interest, commitment charge and other charges   Mionterrey, S.A., Mexico, of 458,333 shares. Un-
on such loans and equity investments and on         der said agreement, the Corporation agreed to
underwriting commitments are denominated in         subscribe 75C^, of the shares remaining unsub-
United States dollars except the following amounts  scribed by stockholders. The rights offering ends
for which the dollar equivalent is shown:           on July 7, 1962 and the maximum  amount for
Principal outstanding   .  .  .  . $3,875,371    which the Corporation is committed is $2,942,500
Accrued interest, commitment and                  (Mex $36,781,250). By agreements dated June 19,
other charges  .  .  .  .  .  .   106,489       1962 the Corporation received commitments from
participants whereby the Corporation would be
Total   .  .  .  .  .  . $3,981,860      relieved of an aggregate of 351/3, of its commit-
ment.
NOTE C
Cuba and Indonesia have withdrawn from mem-
bership in the Corporation. The value of their                     G E N E R A L
shares is as follows:                               The operational investments are represented by
Cuba  .  .  .  .  .  .  .  .  . $ 388,000         both loans and equity. In addition, in certain
Indonesia .  .  .  .  .  .  .  . 1,218,000        investments, the Corporation has the right to
Total   .  .  .  .  .  . $1,606,000      acquire shares and/or participate in the profits of
-            the enterprise.
24



OPINION OF INDEPENDENT AUDITOR
1710 H STREET, N.W.
WASHINGTON 6, D. C.
August 3, 1962
To
INTERNATIONAL FINANCE CORPORATION
WASHINGTON, D. C.
In our opinion, the accompanying financial statements present fairly the
financial position of International Finance Corporation at June 30, 1962,
and the results of its operations for the year then ended, in conformity
with generally accepted accounting principles applied on a basis con-
sistent with that of the preceding year. Our examination of these state-
ments was made in accordance with generally accepted auditing standards,
and accordingly included such tests of the accounting records and such
other auditing procedures as we considered necessary in the circumstances.
PRICE WATERHOUSE & CO.
FINANCIAL STATEMENTS
COVERED BY THE FOREGOING OPINION
BALANCE SHEET .................................... APPENDIX A
COMPARATIVE STATEMENT OF INCOME AND EXPENSES .... APPENDIX B
STATEMENT OF OPERATIONAL INVESTMENTS
AND UNDERWRITING COMMITMENTS .....       .......... APPENDIX C
NOTES TO FINANCIAL STATEMENTS .................... APPENDIX D
25



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14 00 CZ  Z 4" 4~ ~~~~~~~~(



APPENDIX F
GOVERNORS AND ALTERNATES
June 30, 1962
Member Government             Governor                    Alternate
Afghanistan  . . . . . . . Abdullah Malikyar              Abdul Hai Aziz
Argentina  . . . . . . . . Ricardo P. Pasman              Alejandro E. Frers
Australia  . . . . . . . . Harold Holt                    Sir Roland Wilson
Austria . . . . . . . . . Josef Klaus                     Hubert Schmid
Belgium . . . . . . . . . Andre Dequae                    Hubert Ansiaux
Bolivia  . . . . . . . . . Humberto Fossati Rocha         Adolfo Linares
Brazil. . . . . . . . . . Walther Moreira Salles          Octavio Gouvea de Bulhoes
Burma  . . . . . . . . . U Kyaw Nyein                     U Kyaw Nyun
Canada . . . . . .            Donald M. Fleming           A. F. W. Plumptre
Ceylon  . . . . . . . . . Felix R. Dias Bandaranaike   H. S. Amerasinghe
Chile . . . . .  . . . .  Eduardo Figueroa                Alvaro Orrego Barros
Colombia  . . . . . . . . Jorge Mejia-Palacio             Salvador Camacho Roldan
Costa Rica . . . . . . . . Alvaro Castro                  Alvaro Vargas
Cyprus . . . . . . . . . R. D. Theocharis                 M. E. Guven
Denmark  . . . . . . . . Otto Muller                      Poul Bjorn Olsen
Dominican Republic  . . . . Jose Joaquin Gomez            Lydia Pichardo
Ecuador . . . . . . . . . Guillermo Arosemena             Neftali Ponce-Miranda
El Salvador. . . . . . . . Francisco Aquino               Luis Escalante-Arce
Ethiopia.       . . . .  .     . . Menasse Lemma          Bulcha Demekesa
Finland . . . . . . ... R. v. Fieandt                     Reino Rossi
France  . . . . . . . . . Minister of Finance             Pierre Paul Schweitzer
Germany. .    . . . . . .  Ludwig Erhard                  Heinz Starke
Ghana  . . . . . . . . . F. K. D. Goka                    Hubert C. Kessels
Greece. . .                .   Gregory Cassimatis         loannis Paraskevopoulos
Guatemala .  .   ..           Manuel A. Bendfeldt J.      Max Jimenez Pinto
Haiti . . . . . . . . . . Herve Boyer                     Antonio Andre
Honduras . . . . . . . . Celeo Davila                     Ricardo Alduvin Abaunza
Iceland  . . . . . . . . . Petur Benediktsson             Thor Thors
India . ... . . . .           Morarji R. Desai            L. K. Jha
Iran. .            .  . .  . . Ali-Asghar Pourhomayoun    Djalaledin Aghili
Iraq. .             . . . . Mudhaffar H. Jamil            Abdul Hassan Zalzalah
Ireland. .         .   . . .  Seamas 0 Riain              T. K. Whitaker
Israel . . . . . . . . . . David Horowitz                 Jacob Arnon
Italy. . .              . .  . Guido Carli                Donato Menichella
Japan.      .   . . . . . .  Kakuei Tanaka,               Masamichi Yamagiwa
Jordan.         .  . . . . . . Abed Elwahhab Majali       Kamal Shair
Lebanon. .        .    . .   .    Elias Sarkis            Raja Himadeh
Liberia  . .    . . . . . .  Charles Dunbar Sherman       James Milton Weeks
Libya . . .      .     .      Ahmed Lahsairi              A. A. Attiga
Luxembourg.        .    . . . . Pierre Werner             Pierre Guill
Malaya . . . . . .  . .  Tan Siew Sin                     Dato'lsmail bin Dato'Abdul Rahman
Mexico . . . . . . . . . Antonio Ortiz Mena               Jose Hernandez Delgado
Netherlands  . . . . . . . J. Zijlstra                    S. Posthuma
New Zealand . . . . . . . H. R. Lake                      E. L. Greensmith
Nicaragua . . . . . . . . Guillermo Sevilla-Sacasa        Juan Jose Lugo
Nigeria . . . . . . . . . Chief Festus Sam Okotie-Eboh Reginald A. Clarke
Norway . . . . . . . . . Oscar Christian Gundersen    Thomas Lovold
Pakistan . . . . . . . . . Abdul Qadir                    Aftab Ahmad Khan
Panama . . . . . . . . . Augusto Guillermo Arango    Carlos A. Velarde
Paraguay. . . . . . . . . Cesar Romeo Acosta              Oscar Stark Rivarola
Peru .    .    .    .         Fernando Berckemeyer        Emilo Foley
Philippines.      .  . . .  . . Andres V. Castillo        Bienvenido Y. Dizon
South Africa  . . . . . . . T. E. Donges                  M. H. de Kock
Spain . . . . . . . . . . Mariano Navarro Rubio           Juan Antonio Ortiz Gracia
Sudan.    . . . .  . . . . Abdel Magid Ahmed              Hamzah Mirghani Hamzah
Sweden . .. .                 G. E. Straeng               N. G. Lange
Syrian Arab Republic . . . . G. Khoury                    Abdulsattar Noueilati
Thailand   . . . . . . . . Sunthorn Hongaladarom          Boonma Wongswan
Turkey.         .  . . . . . . Sefik Inan                 Ziya Kayla
United Arab Republic . . . . Abdel Moneim El Kaissouni
United Kingdom . .   .  . .  Reginald Maudling2           Sir Denis Rickett
United States . . . . . . . Douglas Dillon                George W. Ball
Venezuela . . . . . . . . Rafael Alfonzo Ravard           Miguel Herrera Romero
' Appointed as of July 20, 1962    2 Appointed as of July 18, 1962
27



APPENDIX G
DIRECTORS AND ALTERNATES AND
THEIR VOTING POWER
June 30, 1962
Director             Alternate                  Casting votes of         Total votes
APPOINTED
John M. Leddy            Erle Cocke, Jr.         United States                  35,418
David B. Pitb]ado        S. Goldman              United Kingdom                 14,650
Rene Larre              Jacques Waitzenegger     France                          6,065
C. S. Krishna Moorthi    Arun K. Ghosh           India                           4,681
Otto Donner              Helmut Koinzer          Germany                         3,905
ELECTED
A. van Campenhout        Ernst A. Rott           Belgium, Austria, Turkey,
(Belgium)                (Austria)               Luxembourg                    4,633
Mohamned Shoaib         Ali Akbar Khosropur      Pakistan, United Arab Republic,
(Pakistan)               (Iran)                  Iran, Sudan, Iraq, Lebanon,
Ethiopia, Jordan              4,364
Louis Rasminsky          L. Denis Hudon          Canada, Ireland                 4,432
(Canada)                 (Canada)
Gengo Suzuki             Mo Myit                 Japan, Burma, Ceylon, Thailand    4,240
(Japan)                  (Burmna)
Jose Aragones            Sergio Siglienti        Italy, Spain, Greece            4,129
(Spain)                  (Italy)
Ake Lundgren             Jaakko Lassila          Sweden, Denmark, Norway,        4,097
(Sweden)                 (Finland)               Finland, Iceland
J. M. Garland            A. J. J. van Vuuren     Australia, South Africa          3,823
(Australia)             (South Africa)
P. Lieftinck             Augustin Papic          Netherlands, Israel              3,596
(Netherlands)            ( Yugoslavia)
Luis Machado             Lempira E. Bonilla      Mexico, Peru, Venezuela, Costa
(Cuba)                  (Honduras)               Rica, Guatemala, El Salvador,
Honduras, Nicaragua, Panama   3,357
Juan Haus Solis          Carlos S. Brignone      Argentina, Chile, Bolivia,      3,144
(Bolivia)                (Argentina)             Paraguay
Jorge Mejia-Palacio     Jose Camacho             Brazil, Colombia, Philippines,
(Colombia)               (Colombia)              Ecuador, Haiti                3,024
Omar S. Elmandjra       Ismail Khelil            Malaya, Ghana, Afghanistan,
(Morocco)               (Tunisia)                Libya                          1,609
28



APPENDIX H
SUMMARY OF COMMITMENTS
Expressed in U.S. Currency
June 30, 1962
Coantry                            Type of           Date of
and Obliger                      Bainess         Commitmenrt                      Terms                           Nrt Commitment
ARGENTINA
Acindar Indastuit Argentina    Steel              June 1960    15% interest; maturities 1965-70; notes convertmble
de Aceros, S.A.                                                mto special cltss shares                        $3,660,000
Fabrica  Argentia  ae E,-    Automotive           June 1961    7%  mterest; maturiti-s 1968-73; $750,000 natos
granajes, S.A.I.C.            transmissions                    convertible iota common shores                   1.500,000
and gears
Pau, Petroquim-is Argen-       Potrochemipal      Aug. 1961    7t',r  debenturcs; tnaturstis 1967-74: option o
tint, SAILC.                                                    h-ens                                           3,050,00     a ,21o0,00
AUSTRALIA
Duncan's Holdings, Ltd.        Lumber and mill   Sept. 1957    7% interest and additional payments contingent on
products                        profits; maturities 1961-67; option orn shares    660,000
Rubberten (Australia)          Rubber products   Jan. 1959    6' interest and additiana paymenn contingent on
Proprktiey. Ltd.                                               profits; maturities 1961-70; option on shbrns     225,000
S.me                           Same               June 1960    6'. imterest and additional payments -ontingent an
ame                                                             profits; mataritios 1961-71; option on shames      90,000       975,000
BRAZIL
Siemens do Brasil Cia. de     Electrical          June 1957    6% interest; maturities 1962-68; opton on shores   1,000.000
Elehricidade                   equiPment
Olinkraft,S.A.CetlaoseePapol'  Pulp and paper     Jan. 1950    7%,. intserst; maturiti-s 1963-70; optiu  on shares  957,000'
D.L.R. Plasticos do Brasil,   Automotive          Ape. 1958    7% interest; mawrities 1961-68; participatior in
S.A.                          pats                             profits; optiun on shab,s                         450.000
Willys-Overland  do  Brasi,   Motor vehiclns      June 1958    7% interest; mnatritirs 1963-66; rPaticiPatior m
S.A., Industia e Comerio                                       profits; option  n shams                        2.450,000
Campanhia Mineira de           Cement             Dec. 1958    7a mterost: maturities 1963-69: PorniciPtiior in
Cimento Portland, S.A.'                                        profits; option on shares                        1,200,000*
Champion Celalpse, S.A.t       Pulp               June 1959    7% interest and additional payments contingent on
profits: motarhies 1965-69; aptian honsbors     4,000.0001   10,057,000
CHILE
Empmna Minera de Maits    Copper mining           Aug. 1957    7% interest and additional payments related to
BlanIos, S.A.2                and smelting                     divld-nds: molunirins 1964-68; option on shar-   2,200,0002
Some                           Sams               JuSe 1959    Srae terms                                          900,000
C=mpafiia Molinos y Fid-os    Foud products       Juno 1959    6% intecest nd additional paymets contingent an
Carozzi                                                        profits; maturit,si  1963-70: option on shbres   1,500.000
Cementas Bio-Bio, S.A.        Cement              July 1959    7%c interest and additional payments contingent on
profits; maturities 1966-71; optos on shares    1.000,000
Sums                          Samne               Sept. 1960    SIme terms                                         200,000     5,800,000
COLOMBIA
Laminas del Caribn, S.A.      Fibreboard          Juno 1959    7% interast and additional paymnents cntinicnt on
profits; mtatrities 1962-67; option on sharms    500,000
Fabrica de Galletas y Confites    Food prdoducs   July 1959    6r miterest and additional payments contingent on
Noel, S.A.                                                     profits; maturities 1964-69; opti.n on shares    1,000,000
Envatna Coluinhanos, S.A 3     Metal sans         Non. 1960    7%7, interest and additional pnymcnts continge., an
profits: maturities 1966-72; aptin on shares     700,0003
Berry, Selvey y Cia., S.A.    Home f-rnitaro      Jan  1961    7% mterest and additional payments contingent on
profits; maturities 1965-70; option on shames     170,000
Elmtnomanuafturas., S.A.       Eleoari-o          June 1961    0%  interest (Cl1$1,560,000 and S305,000); na-
equipment                       tursties 1965-70; option on shares                500,000
Corporacion Fin,ociera        Industrial          Aug. 1961    Na fined interest; payments related to dividerds;
Columbian- de Desa-ollo       financig                         maturity 1973; notes convertible ito common
Industrial                                                     shars                                            2,023,730
Corporacion Financiera        Indotorial          Aug. 1961    No fised interest; payments related to dMideods;
Nacional                      financig                         maturity 1973; notes covnveble ito common
shams                                           2,000.000     6,093,730
EL SALVADOR
Industria Tentiles, S.A.      Tetiles             May 1959    7%, interest and additional payments contingent on
profits; maturities 1962-69; option en shares                  140,000
FtNLAND
Oy Kutamotuotr Ab, Triad      Tentil-s            Jnto 1960    63A%  inteso and additional payments cntitgont
Oy, Toli Oy                                                    on net sales; mat.ritim 1962-60                   156,000
Rauma-Repola Oy5               Plp, lumber,       Sept. 1960    6%o interest and additional payments related to
machinery and                   dividends; maturities 1961-65; opion on shbres   1,875,0004    2,031,000
shipbuilding
GREECE
Aevol Industrial Company of   Feetilters          Mar. 1962    7%% imterest; mtanuities 1964-73; common sharos
Organic Fenilizers, S.A.                                       to be received withont payment                                 600,000
z Pardeipationsthrsugb IFC is thin amonnt: 3 m-stnmeot tr-sts and 10 investors through nveatmono bankors  02,225,000
Chemical Overseas Fiance Corporation ..5..... . . . S 750,000
Bankors Insernatinonl Corpeostiun ..1.......   .    S 200,000
o Participation throagh IFC in this amount: Philadelphia International In-estment Carp-ration . . 5. .   S 250,000
3 Participation ltroogls IFC io this omount: Philadelphia International Insestmsot Corporation   .    .  $ 225,000          (continued)
4 Participations through IFC in this amount: Philadelphia International nIsmI ment Corporton  . . ... S 375,000
SOFINA, S.A- .-. .                                 . .      S 200,200
Banque Lambert, S.C.S.  ..  . . ..  . . . . . . . . S 200,700
Handolsfinano A.G.......             .........S 200,5000
' Total amount of this investment sold.
29



APPENDIX H
½ vi yv M A RY oF CO M M 1 TM E NTS  ' CONTINUED'
Expressed in U.S. Currency
June 30. 1962
Country                             Type of           Date of
and Obligor           _          Bsiness          Comm_C ment                        Terms                            Ner Comnitment
GUATEMALA
Industia Harinera              Flour milling       Oct. 1958    5% interest aod additional payments contingent on
Guatemalteca, S.A.                                              profits; maturities 1963-66; option on shares                S  200,000
INDIA
Assam Sillimamnte, Ltd.        Refractory bricks    June 1960    6I5%% interest and additional payments contingent
so profits: maturities 1965-74; option on shares    $1,365,000
KSB Pumps, Ltd.                Pumps. compres-   Jan. 1961    7, interest and additional payments contingent on
tes anddvalve                    profits; maturities t966-1971                     210,000      1,575,000
IRAN
Sherkate Sahami Kahkashan    Ceramic tiles         June 1959    7% intrerst and additional payments contingent on
____                                              ~~~~~~~~~~~~~~~~~~profits; maturities 1962-68                    300,000
ITALY
Magrini Mersdionale. S.p.A.   Electricat          Juno 1960    No fined interest (It. Lire 300.000,000 and $480,000
equipmeot                        convertiblt notes); 6%  imterest contingent on
profits and additional payments rolated to divi-
dends; maturities 1976-79                                       960,000
JAMAICA
Jamaica Pre-Mis, Ltd.          Pro-mied            May 1961    7%, interest and additional payments contingent on
concrete                         profits; maturities 1966-71                                     224,000
MEXICO
Industrias Perfect Circle, S.A.   Industrial       Aug. 1957    9% interest and additional payments contigent on
equ1pmeat                        profits; maturities 1961t-68                       600,000
Bristol de Mesico, S.A.        Aircraft engine     Sept. 1957    7%  interest (Mex$3,250,000 and $260,000) and
overhaul                         additional payments contigent en profits; ma-
tarittes 1960-66; option on shares                520,000
Acr Solar, S.A.                Tist drills         Oct. 1960    7% interest nd additional payments contigeut on
profits; maturities t964-70                       200,000
C.ompania F-ndidora de Fierro   Steel              June 1962    Purchase of 128,000 common shares; underwriting
y Arer de Monterrey, S.A.                                       iss,ea,thmanimn mcommitmentor S2.9fmillion       1,126,400     2,526,400
PAKISTAN
Stint Corporation of           Steel products      Jane 1958    7%'c interest and additional payments contingent on
Pakistan, Ltd.                                                  profits; maturities 1964-68; option on shares      630,000
Adamjre Itdustries, Ltd.       Cotton tentiles    July 1958    7% interest; matrities 1964-68; option en shares      749,705
Ismait Cement tndustries, Ltd.s   Cement          Sept. 1961    71/t%, debentures; maturities 1966-73   $2,750,000
No fixed interest; convertible income
notes; payments related to dividends;
maturitios 1974-76                 1,250,000    4,000,0005    5,379,705
PERU
Industnias Reunidas, S.A.      Household           Sept. 1959    6% intormt and additional payments contingent on
appliances                       profits; -aturitios 1962-67; option on shares     250,000
Luron, S.A. ond Ladrdlos       Limestone and       Sept. 1959    7% interest and additional payments contingent on
Calcareos, S.A                 bricks                           profits; maturities 1963-69; option on shares      280,000
Durisot del Peru, S.A.         Budding material   Oct. 1959    7% imterest and additional payments contingent on
profits; maturities 1965-69; option on shares     300,000
Fertilizantes Sintersces, S.A.°    Ammonia and     Nov. 1959    7% interest and additonal payments con-
fertilizers                      tmgeet on profits; maturities 1965-69 03,186,000
No fined iterest; payments contingent
on profits; maturities 1970-73; deben-
tures convertble into common shares 700,000
Same                           Same                May 1962    Same as $700,000 portio above            197,290    4,083,2906
Cemento Adino, SA.             Cement              Sept. 1961    7½%G9ninterest;r,aturitisfi968-73;optiononshares  2,400,000     7,313,290
SPAIN
Fabric-  Espadola Magnetos,   Automotive slec-   Feb. 1962    7% notes ($2,500,000); maturities 1964-71;           2,5W,000
S.A.'                          trical equip-                  Up to Ps. 30,000,000 $500,000) in common shares      500,000     3.000,0007
ment
TANGANYIKA
Kilomebro Sugar                Sugar               June 1960    7%  debentures (£250,000 and $1,400,000); ma-
Company, Ltd.                                                   turties 1967-73; option on shares                2,100,000
No fined interest on £250,000 convetible not";
payments contingent on profits; maturties 1973-
75                                                700.000     2,000,000
THAILAND
The Concrete Products &        Concrete            Jane 1959    6% interest and additional payments c.nta-geet on
Aggregate C., Ltd.             products                         profits; maturites 1961-69                                      300,000-
VENEZUELA
Siderurgicp  Venezolana, S.A.    Steel            June 1960    7, interest and additional payments contingent on
profits; maturities 1962-70; option an sharres  3,000,000
Diablitos Venezolanos, C.A.    Food products       July 1960    6% mterest and additional payments contingent on
profits; maturities 1962-69; option on shares     176,000W     3,176,000
GRAND TOTAL                $62,461,125
Participation through IFC s this a-mons: Bank of America N  T.                                       S S. A...  172,000
Participations through IFC in this amoant: Handeln -Gfi.ane   .      . A  .O.$1,486,000
The Deltu C-rpoeaiin   ....             .5....                     429,000
Compagnie Financiere d S       .     .  .  .  .  .  .  .  . $ 350,000
Participations through IFC m this amount: Bankers Intreational Fiancing Co., Inc.   .  .  .  .  .  .  . $ 300,000
Dresdner Bask, A.G.                                  .       S 148,500
*Total amouant of thint investment sold.



APPENDIX I
O F F I C E R S
EUGENE R. BLACK .................. President
MARTIN M. ROSEN ..................                               Executive Vice President
J. G. BEEVOR ..................                                            Vice President
J. DAVID DODD .................. Senior Efngineer
A. G. EL EMARY* ..................                 Director of Development Bank Services
HON. LEONARD HALL .......... Director of Investments, Africa, Asia and the Middle East
CHARLES F. HERRMEYER          .        ................. Fintanicial anid Accouniting Adviser
NEIL J. PATERSON ......... Director of Investments, Latin America, Europe and Australasia
R. B. J. RICHARDS .................. General Counsel
G. C. WISHART ..................                                 Assistant to Management
R. W. CAVANAUGH ..................                                              Treasurer
M. M. MENDELS .................. Secretary
W. F. HOWELL ..................                                 Director of Administration
HAROLD N. GRAVES, JR ..................                           Director of Information
These officers hold the same positions in the International Bank
for Reconstruction  and  Development  (the World  Bank).
JAMES H. DARTON ..................                         Special Representative-Europe
ELLIOTT H. LEE ..................                      Special Representative-New  York
* Mr. William Diamond was appointed on July 9, 1962, to succeed Mr. El Emary
who was granted a year's leave of absence for service with the United Nations.
31



O F F I C E S
The International Finance Corporation is located in Washington, D.C.
IFC maintains offices also in New York, London and Paris.
Addresses are as follows:
1818 H Street, N. W ...............                   Washington 25, D.C.
33 Liberty Street ...............                      New  York 5, N.Y.
27 Old Jewry .....              .......... London E.C.2, England
4 Avenue d'Iena ...............                          Paris 16e, France