International · Bank for Reconstruction and Development Jf( .RLD - ------~-:<~' Intemation.al Finance Corporation 1818 H STREET, N. W., WASHINGTON 2!5, D. C. TELEPHONE, EXECUTIVE 3-6360 ; o 4-1 I (. FJNA~C, I i 4~;0~ 0 o ; Bank Press Release No. 63/2A Subject: Fina.nee for new Private IFC Press Release No. 63/10 Development Corporation July 16, 1963 in the Philippines The Private Development Corporation of the Phil:fppines has announced that it has successfully sold its first public offering of capital stock, consisting of 2,500,000 shares with a total par value of 25 million pesos. Seventy per cent of the shares were offered to Philippine subscribers and to the International Finance Corporation, an a.ffiliate of the World Bank. The remaining :Pl, ware subscribed principally by 18 leading private institutions outside the Philippines. • This is the largest group of international investors with which the :R1C has ever been associated, an"- one of the largest ever to participate in the capitalization of a. development corporation. These overseas participants include 14 ~rica.n inveetmont and banking insti- tutions, two British banks.:> a German bank and a Japanese bank, -as follows: The American Express Company, Inc. Bank of America. The Bank of Tokyo, Ltd. Bankers International. Financing Company Inc, Boston Overseas Financial. Corporation The Cha.rteren. Bank Chemical. International Finance Lta. Continental International Financ~ Corporation Deutsche Banlt A.G. Firs't :National City Overseas Itrtestment Corporation The Hongkong and Shanghai Banking Corporation Irving International Finallcing Corporation Lehman Brothers Manufacturers H~over International. Finance Corporation • Morgan nu&r811ty International Fina.nee Corporation Ne~ York Hao.seatic Corporation Philaslelphia International Investment Corporation Wells Fargo Bank International Corporation - 2 - Mr. Francisco Ortigas, Jr., Chairman of the Private Development Corporation • of the Philippines, speaking for himself and the other directors of the Corpora- tion, expressed gratification with the success of the issue. "The Directors of PDCP," he said, "are especially grateful for the widespread support given to our new enterprise by subscribers abroad. This extensive participation in our stock issue is an encouraging demonstration of confidence in the future of the Philip- pine economy and in the opportunities for private investors in our country." Privately owned and managed, the new Corporation is designed to serve as a leading instrument in promoting and financing the growth of private industry in the Philippines. It will make medium and long-term loans, provide under- writing facilities and invest in the equity of private industrial enterprises, while its diverse overseas connections will enable it to attract foreign invest- ment into the Philippine economy. PDCP was established with the assistance of IFC and the World Bank, which helped in exploring tha feasibility of establishing it and assisted members of • the Philippine business community to organize it. PDCP now has total resources of 111 million pesos, including a loan of US$15 million from the World Bank, a loan of 27. 5 million pesos from the United_"States Agency fpr Interr1tational Develop- ment, investments by the founding shareholders and the proceeds of the present stock issue. Operations will begin soon after the election of the :Board of Directors at the first Annual Meeting of the shareholders, which is to be held in the near future. The public stock issue of the POCP consisted of 1,.750,000 Cl~:s A shares (for offering to Philippj.ne citizens, to corporations with at least 6o% of their • shares held by Philippine citizens, and to IFC) and 750,.000 Class B shares avail- able for subscription without restriction. Both classes of shares were offered e.t the par value of 10 pesos each. • The International Fina.nee Corporation had undertaken to subscribe as many , - as 500,000 Class A shares of the new POOP issue, with a commitment tota.ke )'-, 80,000 shares initially and to stand by to take up tc 420 1 000 shares DX>re, de- pending on the response of Philippine investors to the offering. In view of the success of the offering, IFC will not be called upon to take up any shares under its stanciby commitment; thus IFC's total invef3tment is 8o,ooo shares With a par value of 8oo,ooo pesos (equivalent to US$205,ooo). With this operation the IFC and the World Bank have joined in fin~d:J,ng four development fiL)'.ancing institutions, under arrangements whereby the Bank provides loan capital and IFC provides equity. The other institutions being "assisted by the Bank and Corporation in this way are the Banque Nationale pour le Developpement Economique, of Morocco, the Pakistan Industrial Credit and ~ Investment Corporation and the Malayan Industrial Development Finance Limited • •