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TUNISIA NP.K. Engrais, S.A. T. produces fertilizers from local deposits of rock phosphate.

INTERNATIONAL FINANCE CORPORATION

1973ANNUAL REPORT

"The purpose of the Corporation is to further economic development by encouraging the growth of productive privateenterprise in member countries, particularly in the less developed areas, thus supplementing the activities of theInternational 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 produc-tive private enterprises which would contribute to the development of its member countries by making invest-ments, without guarantee of repayment by the member government concerned, in cases where sufficient privatecapital is not available on reasonable terms;

ii. seek to bring together investment opportunities, domestic and foreign private capital, and experienced manage-ment; and

iii. seek to stimulate, and to help create conditions conducive to, the flow of private capital, domestic and foreign,into productive investment in member countries.

"The Corporation shall be guided in all its decisions by the provisions of this Article."

Article OneArticles of AgreementInternational Finance Corporation

The Directors of the International Finance Corporation have had prepared this Annual Report for the fiscal year July1, 1972, to June 30, 1973, in accordance with the By-Laws of the Corporation. Mr. Robert S. McNamara, Presidentof the Corporation and Chairman of the Board of Directors, has submitted this Report, together with the auditedfinancial statements, to the Board of Governors.

ContentsPage

I. THEINVESTMENTCLIMATEIN1972-73 ....... ........... 3II. IFC'S YEAR ................ ................... 6III. THEYEAR'SINVESTMENTS .............................. 10

Summary ..................................... 10Mining ................. .................... 11Development Finance ................................. 12Cement ................... .................. 14Tourism ..................................... 17Pulp and Paper ..................................... 21Motor Vehicles ..................................... 23Steel ..................................... 23Chemicals ..................................... 24Capital Markets ..................................... 27General Manufacturing ................................ 28Food and Food Processing . ............................. 31Textiles ..................................... 33

IV. THE YEAR'S FINANCIAL RECORD ........................ 36Summary for 1973 .................................... 36Five-year Summary 1969-1973 .......................... 36Financial Statements .................................. 37

V. APPENDICES .................................... 47A Statement of Subscriptions to Capital

Stock and Voting Power ........................... 48B Governors and Alternates ............................ 49C Directors and Alternates and their

Voting Power ................................... 51D Officers and Department Directors ..................... 52

1

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I_

1. THE INVESTMENT CLIMATE IN 1972-73The preceding twelve months saw continuing countries achieved an overall payments surplus of

turbulence in the world's financial and exchange approximately $5 billion with the industrial coun-markets. The period was characterized by strong tries in 1972. This reflected both a significant re-speculative capital movements, a further major duction in their overall deficit on current accountrealignment of exchange rates, the intensification and an increase in their capital receipts. Indeed,of capital and other controls in several important together with the surplus of the petroleum produ-countries, and the introduction of a regime of flex- cers, the developing world as a whole had an over-ible or floating rates for the world's major cur- all payments surplus of around $8 billion in 1972.rencies. Although these developments contributed Trade and Investment Flowsto a very uncertain financial climate, and accen- The heInestme owstuated the risks associated with international busi- The heightened pace of economic activity inness and investment, the economic and investment both industrial and developing countries providedperformance of both developed and developing the impulse in 1972 for a high level of trade, and forcountries showed surprising strength and continued international investment. World trade inresilience. 1972 grew by nearly 10 per cent in real terms, while

The economic recovery which began towards the the total flow of resources to developing countriesend of 1971 in the industrial countries of Europe (not including Euro-currency credits) exceeded $19and North America gathered momentum in 1972. billion-over 7 per cent higher in dollar terms, butThe economic upturn was stimulated by the expan- slightly less in real terms, than in 1971. Accordingsionary financial policies which were pursued in to OECD estimates, this resource transfer includedmost industrial countries during 1972. Moreover, some $8.3 billion in private capital flows, of whichthe existence of substantial under-utilized capacity $3.8 billion, or roughly the same amount in dollarpermitted an upsurge in industrial production. terms as in the previous year, represented directTowards the end of 1972 and in early 1973, there foreign private investment (including investmentwere indications of a marked increase in the rate of in petroleum but excluding suppliers' credits) inreal investment and consumption expenditures, less developed countries.and it became apparent that in some key industrial There are no recent data on direct foreign privatecountries the cyclical upswing was gathering boom investment excluding petroleum, but the availablecoportions, givg c rise to strong inflationary pres- information for 1972 suggests that it did not di-

sures. While real economic growth in the industrial verge substantially from its average level duringcountries ranged betweenS5-6 perocent during 1972, the previous three years of about $1.8 billion. Inprice increases averaged 4-5 per cent, certain developing countries, such as Brazil, Iran

The year 1972 also proved, by and large, to be a and Indonesia, the private sector showed vigorousfavorable year from the standpoint of the develop- growth and these countries were amongst the majoring countries. The rising pace of economic activity recipients of foreign private capital during 1972. Inin the industrial countries, supply shortages in ma- these and other cases,joint ventures were the favor-jor consuming areas, and other factors contributed he vehicle for collaboration between foreign capi-to a strengthening of the markets for primary tal and local enterprises.commodities. In 1972 price increases were con- In some developing countries, there have beencentrated in agricultural goods, particularly non- moves towards increased host country participa-food items, while metal prices showed little change. tion in foreign-owned enterprises. There has beenPrice advances over a broader front can be ob- a growing recognition that, in the case of existingserved in 1973, with metals sharing in the price enterprises, such policies should be implemented inrise. Although the impact of improved commodity an equitable manner, so as not to affect adverselymarkets in 1972 was somewhat uneven, the overall the continuing flow of foreign investment. Thereexport performance of primary producing coun- have also been a few cases of outright nationaliza-tries in that year, with a nearly 18 per cent rate of tion of foreign investment, but the governmentsgrowth (US dollar terms), was nevertheless impres- concerned have generally committed themselvessive. The non-petroleum producing developing to providing appropriate compensation. Progress

was made in developing countries such as Bolivia,

INDONESIA P. T. Pnmatexco manufactures cotton cambric, used to make Zaire, Sudan, Iraq and Brazil towards settlementsarongs", the country's traditional dress. of certain existing investment disputes, and, in cer-

3

tain other cases, there were hopeful signs that the currency market has grown very rapidly, and esti-stage of negotiation and settlement might be ap- mates of its size exceed $100 billion. But it remainsproaching. In some countries, such as Algeria, a delicately poised market, extremely sensitive toEgypt, Sri Lanka and Sudan, there appeared to be speculative monetary movements, and to changesrenewed interest in inviting private foreign invest- in the economic and financial policies of the capitalment in designated areas. On balance, therefore, exporting countries. The criteria and methods ofthe climate for private investment in the develop- Euro-currency lending are also at an early stage ofing countries showed some encouraging signs development. There are no established lendingin 1972. standards in the market, and no overall regulatory

surveillance of Euro-currency operations to prevent

LDC's in the Euro-Currency Market unsound practices. The institutions in the marketIn view of the uncertainties created by interna- generally aim at achieving a large turnover on the

tional monetary and exchange developments y basis of small margins, while operating with a rela-tional monetary and exchange developments in ti.l moes eqit bae hl uc oiyi1972, it was remarkable that the flow of private tvely modest equilty base While such a policy iscapital to the developing countries was sustainedto profitability, It leaves them vulnerable

at levels comparable to those of recent years. An to sudden shifts in monetary conditions.even more striking feature of 1972 was the heavy In short, while the Euro-currency market has

recourse bydeveopingountrietothEur- provided an important alternative source of financ-rcourreny market.loping countries to theEuro iing to selected developing countries during 1971/

The developing countries began to have direct 72, its advantages have to be viewed against theaccess on a substantial scale to the Euro-currency risks implicit in its institutional practices, and theaccess ~. on a susatilsalotteeuocurnyntial debt management problems that mightmarket in 1971, when liquidity conditions in the potemarket eased following large loan repayments by be created for the developing countries. Euro-

U.S. banks. Since then a conjunction of circum- credits are attractive to borrowers from the devel-stances has facilitated their growing reliance on this oping countries because of their administrativesource of financing. New injections of funds in the simplicity, their "untied" character, and their flexi-market by Japanese institutions and petroleum- bility in permitting a "switch" of currencies, butproducing countries have added to the available they also entail a fairly high degree of risk. Thisliquidity, while the withdrawal of many well- arises in the main from their "floating rate" featureestablished European borrowers from the mark which creates uncertainty in regard to the futurefollowing the reinforcement of controls on incom- cost of credit. Over the last three years, Euro-dollaring capital in certain European countries, has in- rates have reached a peak of over 1 1 per cent, andtensified competition among lenders and permitted dropped as low as 5 per cent; these fluctuations cancertain developing countries to mobilize substantial present serious problems when the credit is des-additional resources. tined, as is often the case with loans to developing

Informal estimates place borrowing by develop- countries, for financing industrial or infrastructureing countries in the Euro-currency market at investments. In such cases, the risks of a floatingarg oundt$ie5-i3.5 biloncn17end more at rate are often compounded by the maturity periodtwiceuas high in3 1972,lpossiblyind tore of of the loans. Although the maturities of Euro-twice as high in 1972, possibly in the order of curnylashvebnlnghig,tyar$7-$8 billion. Some of this borrowing probably currency loans have been lengthening, they aresu8bstitutdorntr.diona ours bofincing such still predominantly in the 5-8 year range, which

subst d fr tmust be considered relatively short for financingas suppliers' credits; thus new suppliers' credits fixed investment.declined by 28 per cent in 1972. Since there is at It is not inconceivable that a reversal of the recent

present no comprehensive system for reporting favorable circumstances which have facilitated theEuro-credits, and as these are only partially reflectedin the available statistics of portfolio investment, entry of the developing countries into the Euro-it seems likely that the aggregate transfer of pri- currency market, or other international monetaryvate capital toat e developing countries in 1972 developments, might result in a sudden drying upwas probably higher than that estimated by OECD of this new source of funds. Historically, high levels

was p yof economic activity in the industrial countries havecreated large internal demands for capital which in

Problems and Risks turn have impinged upon the cost and availabilityThe remarkable growth in borrowing by devel- of private capital to the developing world. Al-

oping countries in the Euro-currency market is not though a tightening of monetary conditions, ac-entirely without potential problems. The Euro- companied by rising interest rates, can currently be

4

observed in countries of Europe and North Amer- First, much of the current Euro-lending is beingica, these do not appear so far to have affected the done on the basis of broad syndication, with the ac-availability of funds in the Euro-currency market. cent on risk-distribution rather than on an analysisMoreover, there should continue to be, at least for of the creditworthiness of the borrower. The thor-some time to come, sizable additions to the sup- ough appraisal which is an integral part of all IFCply of funds in the Euro-currency market, not only investments can be valuable in reducing the risk offrom traditional sources but also from the rising potential lenders, and in improving the terms andpayment surpluses of the developing countries conditions of the credit for the borrowers. Second,themselves, especially the oil producing countries. IFC can provide its own financing on terms whichNevertheless, the developing countries which have make the total financial package more suited to theborrowed heavily in the market should expect requirements of the borrower. IFC can supply fi-sharp fluctuations in the liquidity conditions in the nancing at fixed interest rates, and for a sufficientlymarket, and they should allow for significant long term so as to meet the genuine needs ofchanges in the cost of their outstanding borrowing each investment.as part of overall debt management. Not least, IFC, as an international institution

with both developed and developing countries asThe Role of IFC its shareholders, is uniquely able to promote confi-

Recognizing that the Euro-currency market of- dence between foreign and local investors and be-fers scope for mobilizing additional private capital tween those investors and the governments offor the developing countries, IFC has offered the countries in which investments are made. It isdeveloping countries the opportunity of obtaining against this background that the Corporation hasfinancing jointly from IFC and from the Euro- continued to bring together foreign and local in-currency market, thereby enabling them to improve vestors in joint ventures, for which there is increas-the terms and conditions of their overall investment ing preference in the developing countries, andfinancing. IFC is in a position to make a construc- which require mobilization of capital and technicaltive contribution in several areas. know-how on a worldwide scale.

* * *

5

11. IFC'S YEARInvestments Distribution of Investments

Twenty-eight investments in 18 countries were During the year IFC for the first time made in-made by IFC during fiscal 1973. The Corporation's vestments in Afghanistan, Bolivia and Cyprus. Ofnew commitments, in loan and equity, and in un- the Corporation's total investments during thederwriting agreements, totaled $146.7 million. Of year, $30.4 million was committed in support of athis total the equivalent of $28 million was made nickel miningjoint venture in Brazil, and $25.4 mil-available in currencies other than dollars. Con- lion for local development financing, in the Philip-currently with IFC others invested $274.6 million pines, Turkey, Afghanistan and Ecuador. Cementin the same enterprises. Taking into account $59.4 production, in Indonesia, Mexico and Cyprus, re-million to be financed by cash generation, the total ceived a total of$ 19.5 million, while tourist projectscost of these projects was $480.7 million. in Kenya, Indonesia, Tunisia and Turkey were sup-

The total of the Corporation's own investments ported with a total of $16.5 million. Other commit-exceeded that for fiscal 1972, itself a record, by ments were $13.6 million to a pulp and paper proj-$3 1.1 million. ect in Yugoslavia; $11 million to the motor industry

IFC's operations in fiscal 1973 brought the cu- in Iran; $9 million to a steel plant in Brazil; $5.7mulative gross total of the Corporation's invest- million to two chemical projects, in Iran and thements to $848.1 million in 203 enterprises in 51 de- Philippines; $5.3 million to capital market projectsveloping countries, in which others had concur- in Brazil and Colombia; $4.5 million to variousrently invested approximately $3,372 million. manufacturing enterprises in Bolivia, Nigeria and

The cumulative total of the Corporation's com- Zambia; $4.2 million for food and food processingmitments, $848.1 million, represents the gross projects in Venezuela and Iran and $1.7 million foramount invested by IFC in the 17 years since 1956. textile production in Ethiopia.Of that total, $576.3 million, or about 70 per cent, Thirteen of the projects supported by IFC duringhas been committed in the last five years. the year, with a total of $80.2 million, were for the

IFC Commitments by Area IFC Commitments by Area

FY 1973 1957-1973Africa

7.2% ~~~~~~~~~~Australia

//<j t>=\ ; > ~~~~~~~~~~~~~~~~MiddleEast

/_/12.3% _i/ig 4.8%

Western N estern _ Hemisphere

40.0% a 39.4%

/ \ 23.6% /27.4%

\ \ / E~urope \ urop\//\\/ 1~8.4% \ / \ 6.0% \ /

6

expansion and modernization of existing concerns, Commercial Bank of Ethiopia

while another 13 projects, which received a total of Compagnie Financiere et Touristique, Tunisia

$64.1 million, were for the establishment of com- Corporaci6n Financiera ColombianaCriidit Lyonnais. France

pletely new enterprises. Da Afghanistan Bank

Of the cumulative total of $848.1 million of IFC Export-Import Bank of the United States

investments, $334 million (39 per cent) have been First National City Bank of New York

made in Latin America and the Caribbean, $232.2 The Industrial Bank of Japan, Ltd.

million (27 per cent) in Asia, $145 million (17 per Industrial and Mining Development Bank of Iran

cent) in Africa and the Middle East, and $135.9 Komunalna Banka i Stedionica Osijek, YugoslaviaNational Bank of Greece

million (16 per cent) in Europe. National Westminster Bank, Ltd., United Kingdom

Nigerian Industrial Development Bank

Associated Investors Societe Internationale Financiere pour les

Other investors in enterprises assisted by IFC in Investissements et Ie Diveloppement en Afrique. S.A.Socittt Nationale d'Investissement, Tunisiafiscal 1973 included 19 business firms and govern-ment agencies and 28 financial institutions. Ofthese, 15 from industrialized countries committed$133.1 million, 32 firms and institutions from Sales of Investmentsdeveloping countries put up $141.5 million, and

$59. milio wil b prvide frm iteral ashSales by IFC of itS own investments by way of$59.4 miltion will be provided from Internal cash participations and from its portfolio in fiscal 1973generation. reached the record figure of $65 million. The Cor-

lnvestors associated with IFC-financed projectsinvsisc 197 oincluded: poration either sold or agreed to sell its entire posi-

tion in six companies, and the sale of several other

Business Firms and Others investments was initiated.Cabot Corporation, U.S.A. Sales during the year brought cumulative netCementos del Sur, Mexico sales, including the acquisition by others of $33.7Chrysler United Kingdom, Ltd. million of securities covered by standby and under-Compagnie Francaise de Cooperation Economique writing commitments, to $261.5 million. These

S.A., France sales have been a major factor in enabling the Cor-Companhia Brasileirai do Metalurgia e Mineracaop

Brazil poraton to ake total vestments amounting toFuji Spinning Company, Japan nearly eight times its subscribed capital.Government of Indonesia

Intercontinental Hotels Corporation. U.S.A. Purchasers duringfiscal 1973:Kenya Tourist Development Corporation The Bank of Iran and the Middle EastLewis and Peat, Ltd., United Kingdom Bank of Montreal

National Petrochemical Company of Iran The Bank of Tokyo, Ltd.North Central State Government of Nigeria Barclays Overseas Development Corporation, Ltd.,Siderurgica Riograndense (Gerdau), Brazil United KingdomSwiss Aluminium, Ltd., Switzerland The Chase Manhattan Bank. N.A., U.S.A.Thomson Holidays, Ltd., United Kingdom Chemical Bank. U.S.A.

Transturk Ticaret A. S.. Turkey Chemical International Finance, Ltd., U.S.A.Union Trading Company. Ltd.. Switzerland Chemical Overseas Finance Corporation, Ltd., BermudaValtur Turchia SpA..., Italy European Bank for Medium Term Credit, BelgiumVictorias Milling Company. Philippines First Hawaiian Bank

First National City Bank of New YorkFinancial Institutions French American Banking Corporation, U.S.A.

ADELA Investment Company. S.A. The Industrial Bank of Japan, Ltd.Agricultural Development Fund of Iran The International Investment Corporation for

Bamerical International Financial Corporation. U.S.A. Yugoslavia, S.A.Banco de Bogota, Colombia Manufacturers Hanover Trust Company, U.S.A.Banco Industrial S.A.. Bolivia National and Grindlays Bank, Ltd., United KingdomBank Dagang Negara. Indonesia National and Grindlays Finance and Development

Bank Negara Indonesia Corporation, Ltd.. United KingdomBank of Cyprus The Nippon Fudosan Bank. Ltd., JapanBanque de la Societe Financiere Europeenne. France Orion Termbank, Ltd., United Kingdom

Banque Francaise du Commerce Exterieur. France Private Investment Company for Asia (PICA), S.A.Barclays Bank of Nigeria Realty and Mortgage Investors of the PacificBarclays Overseas Development Corporation, Ltd.. "RAMPAC", U.S.A.

United Kingdom The Sanwa Bank. Ltd., JapanChase Manhattan Bank, N.A., U.S.A. Union Bank of Switzerland

7

Some Notable Investments 0 The Corporation's support of a nickel miningAs will have been seen above, IFC's investments project in Brazil, its largest single commitment to

during the year went to most of the sectors which date, was a reflection of IFC's success in findingform a part of the industrial infrastructure in the partners to share in that commitment. It was thedeveloping world. The Corporation made commit- second nickel mining project supported by IFCments in 12 of the 15 industrial sectors in which, at within two years (p. 11).one time or another, it has made investments sinceit was established in 1956. Some of these commit- 0 During the year IFC continued its traditionalments are worth special mention. support of local development finance companies.

A special feature of that support was that theCorporation was instrumental in helping two suchcompanies, in the Philippines and Turkey, for the

Sources of Funds in IFC first time to raise loan finance in the internationalAsourcst ProfjFu s in IFCcapital market (p. 12).Assisted Projects

FY 1 973 0 In the tourist sector the Corporation took thelead in arranging the provision of finance to com-

$5 2 1.1% plete a much-needed hotel in Jakarta, Indonesia$1.7' r 4% Japan (p. 17). Two other projects supported by IFC in

,Finland & 1Switzerland this sector were a vacation village representing the

$40.3 8.4% United States first large foreign investment in tourism in Turkeyand a pilot scheme for an integrated tourist projectin Tunisia (pp. 20 and 21).

$46.5 9.6% European Community

_________ o 0 Five of the year's investments were made in$31.7 6.6% United Kingdom support of the introduction of completely new in-

dustries in four countries.In the Philippines one of IFC's commitments

was to a new plant for production of furfural, achemical product used in oil refining. The plant,

$146.7 30.5% IFC the first of its kind in Asia, will use a new process,developed in Finland, to produce furfural fromsugarcane bagasse, which has hitherto been usedlocally merely as fuel (p. 27).

In Iran the new industry to be introduced isproduction of carbon black for the domestic rub-ber and tire industries (p. 24).

In Nigeria two industrial innovations weresupported, one to produce cottonseed oil fromseeds previously exported for crushing to Eu-rope, and the other to make aluminum profilesfor the local construction industry (p. 28).

$208.6 43.4% Developing Countries In Zambia finance was provided for a tannery

to produce leather for a footwear factory sup-ported by IFC last year. The effect will be to re-place imports and to utilize raw hides which haveeither been exported or wasted (p. 30).

0 In the sphere of money and capital marketsThe proportion of total project costs financed by IFC in 1 973 is somewhat IFC continued its efforts to improve the mobiliza-larger than in previous years. This reflects partly the increased interest ofthe financial community in t973 in portfolio investment-in a couple of tion and allocation of domestic resources in the de-large IFC investments, IFCs partners preferred to take a participation from veloping countries for private investment. In Bra-the beginning is IFC's investment ratner than to ineant directly It also re-flects the impact of a new type of activity for IFC-the assistance provided zil, the Corporation provided a line of credit to ato two institutions in the developing countries to mobilize additional re-sources in the international capital market. syndcate formed by private investment banks in

8

support of a capital market development fund which have some prospect of eventually being suit-created by the Central Bank (p. 27). In Colombia able for financing by IFC. The new office, underIFC took an equity participation in a savings and the direction of Mr. Sergio Markmann, a Chileanloan institution set up to provide finance for national, will, in the first instance, pay particularhousing. attention to countries in South America and in

Africa, and to those situations where project de-velopment from conception to implementation

Technical Assistance may need special assistance.During the year IFC continued to provide vari- A related innovation was the creation of the IFC

ous forms of technical assistance to several devel- Business Relations Unit, under Mr. Normanoping member countries. Macdonald, a United Kingdom national. The

In one such country, in Latin America, IFC un- Group has the specific function and responsibilitydertook a survey of the country's financial sector at of maintaining the Corporation's relations with,the request of the Ministry of Finance. This showed and providing information on IFC to, the govern-that the development of the corporate bond market ment, finance and business communities in theshould be given priority attention. IFC also took Corporation's member countries.the initiative in proposing to private sector groups A third change in IFC organization during thethe creation of certain new financial institutions year was the establishment of a Finance and Man-which would fill gaps in the country's existing fi- agernent Department. The Director of the Depart-nancial structure. ment, Mr. David B. Dillard, a United States na-

in a member country in Asia, IFC. at the request tional, will be the chief financial officer of the Cor-of, and in cooperation with, the Ministry of Fi- poration. He will be responsible for centralizingnance and the Central Bank, was instrumental in in IFC financial and management services hithertodrawing up a broad plan for the development of provided for IFC by the World Bank.the country's financial sector. At June 30, 1973, the staff of the Corporation

In the same country IFC also assisted in the numbered 186, including nationals of 31 countries,organization of technical assistance to be pro- compared with 175 at June 30, 1972.vided by several bilateral aid agencies. Such pro-grams include a training program for government * * *

financial market regulatory and supervisory offi-cials, and advice on establishing guidelines for an IFC's international advisory panel met with theaccounting institute and a permanent training Corporation's officers and management in Wash-program to ensure an increasing supply of prac- ington in October 1972 to discuss IFC activitiesticing public accountants and accountants for and policies. Members of the panel are: J. R. M.industry and commerce. van den Brink, Managing Director, Amsterdam-

In other spheres the Corporation provided tech- Rotterdam Bank, N.V., Amsterdam; Jacques denical assistance in support of studies on the devel- Fouchier, Banque de Paris et des Pays-Bas, S.A.,opment of cement production in two countries in Paris; Dr. Wilfried Guth, Managing Director,South America and one in Africa where, with the Deutsche Bank, A.G., Frankfurt; Sohei Nakayama,World Bank, it joined in studies of the textile indus- The Industrial Bank of Japan, Ltd., Tokyo; Sir Erictry in a member country. IFC also continued to Roll, K.C.M.G., C.B., Deputy Chairman, S. G.provide technical support for the pilot project in Warburg & Co., Ltd., London; and Robert V.Mexico designed to produce newsprint from sugar- Roosa, Brown Brothers Harriman & Co., New York.cane bagasse which it helped to finance in 1972.

Membership and Subscribed CapitalOrganization Two countries became members of the Inter-

During the year the Corporation took action in national Finance Corporation during the year.two specific respects to strengthen its capacity to Lesotho joined the Corporation on Septemberdevelop new investment opportunities, and to 29, 1972, with a capital subscription of S18,000.make better known the assistance it can offer to en- Oman became a member on February 20, 1973,trepreneurs and financiers in the developing and ~with a subscription of $36,000.developed countries. The number of member countries thus increased

A newly created Office of Investrnent Promotion to 98 and the Corporation's subscribed capital towill be responsible for promoting new projects $107,211,000.

9

Ill. THE YEAR'S INVESTMENTSSummary

Total ProjectLoan Equity IFC Cost

AfghanistanIndustrial Development Bank of Afghanistan (industrial

financing) ..... , $ - $ 295,324 $ 295,324 $ 13,400,000Bolivia

Plasmar, S.A. (cables and plastic products) . ...... 300,000 100.000 400,000 1,200,000Brazil

Empresa de Desenvolvimento de Recursos Minerais"CODEMIN" S.A. (nickel mining) ................ 26.000,000 4.400,000 30,400,000 77,000.000

Companhia Siderurgica da Guanabara (COSIGUA)(steel) ...................... 7,000.000 2,000,000 9,000,000 43,100.000

Fundo de Desenvolvimento do Mercado de Capitais(FUMCAP) (capital markets) . ........... 5,000,000 - 5,000,000 49,200,000

ColombiaCorporaci6n Colombiana de Ahorro y Vivienda

(DAVIVIENDA) (financing of housing) ............ - 318,201 318.201 1,600,000Corporaci6n Financiera del Norte (industrial

financing) (second commitment) . ....... - 22,480 22,480 -

CyprusThe Cyprus Cement Company, Ltd. (cement) . ..... 2,340.000 543.700 2,883,700 11,700,000

EcuadorEcuatoriana de Desarrollo S.A. Compafm'a Financiera

(COFIEC) (industrial financing) (secondcommitment) .................................. - 54,214 54,214 100,000

EthiopiaCotton Company of Ethiopia, S.C. (cotton) (third

commitment) .................................. 1.450.000 237,868 1,687.868 4.500,000Indonesia

P.T. Jakarta International (tourism) ................. 11.000,000 - 11,000,000 15,300,000P.T. Semen Cibinong (cement) (second commitment). . . 5,400,000 684,000 6.084,000 9,000,000

IranSherkate Karkhanejate Sanati Iran National,

Sherkate Sahami Khas (motor vehicles) ............. 11,000,000 - 11,000,000 92,100,000Sherkate Sahami Carbon Iran (chemicals) ............ 3,000.000 553,333 3.553,333 10,600,000Iran California Company (agribusiness) .............. 1.250,000 - 1,250.000 7,400,000

KenyaKenya Hotel Properties, Ltd. (tourism) (third

commitment) .................. ............... 2,650,000 185.067 2,835,067 5,900,000Mexico

CementosVeracruz, S.A. (cement) . .......... 10,500,000 - 10,500,000 23,900,000Nigeria

Funtua Cottonseed Crushing Company, Ltd.(cottonseed crushing) ...... .................... 1,647,306 - 1,647,306 5.000.000

Nigerian Aluminium Extrusions, Ltd. (aluminiumprofiles) .................... 912,000 304,000 1,216.000 4,900,000

PhilippinesPrivate Development Corporation of the Philippines

(industrial financing) (second commitment) ........ 15,000,000 - 15,000,000 15,000,000Victorias Chcmical Corporation (manufacture of

furfural) .... 1,850,000 342,000 2,192,000 5,300,000Tunisia

Societe Touristique et Hoteliere Rym (tourism) ........ 1,632,000 362,698 1,994,698 11,500,000Societe d'Etudes et de Developpement de Sousse Nord

(tourism) ..... . . . .. - 38,860 38,860 800,000Turkey

Turkiye Sinai Kalkinma Bankasi. A.S. (industrialfinancing) (fifth commitment) .................... 10,000,000 - 10.000,000 10,000,000

Akdeniz Turistik Tesisler A.S. (tourism) .............. 335,000 267,857 602,857 4,200,000Venezuela

Protinal C.A. (food processing) (second commitment) 2,985,000 - 2,985,000 6,800,000Yugoslavia

Kombinat Belisce (paper and packaging material) ..... 13,579,688 - 13,579,688 48,700,000Zambia

Zambia Bata Shoe Company, Ltd. (shoemanufacturing) (second commitment) . ... ... 1,200.000 - 1.200,000 2,500,000TOTALS $136,030,994 $10,709,602 $146,740,596 $480,700,000

10

Commitments by Types of BusinessMillions of U.S. Dollars

1973

M ining ....... ................. . ..... I 30.4

Development Financing . I 25.4

Cement & Other Construction Materials 1 I 19.5

Tourism . .. 16.5

Pulp & Paper Products 1 113.6

Motor Vehicles & Accessories . I 11.0

Iron & Steel .... 9.0

Chemical & Petrochemical Products . 5.7

Money & Capital Markets . . 5.3

General Manufacturing.... . 4.4

Food & Food Processing . 14.2

Textiles & Fibers . . . . 1. 7

= - ing company of the Hochschild Group, an inter-The following project reports are arranged in the national mining and metal trading organization

order of industrial sectors set out in the above which, among other activities, has a substantial in-

chart, and, within each sector, in the order of size terest in a nickel mine and ferronickel smelter inof the IFC commitment. Brazil (Morro do Niquel S.A.).

CODEMIN was established in 1966 by theshareholders of Morro do Niquel for the purpose of

MINING preparing and carrying out the project which willbe located in a virtually uninhabited area, about200 km. north of Brasilia.

An investment in a nickel mining and refining Loan capital of $47 million came from IFC, sup-project in Brazil brought IFC's cumuilative gross pliers'credits and local credits. Equity capital total-commitments in this sector to $82.1 million. ing $30 million equivalent will be provided by

IFC, Consolidadas, Morro do Niquel, "Brasimet"Brazil Comercio e Industria S.A., Mineraqao Sertaneja

S.A., Companhia Brasilcira do Metalurgia c Mi-IFC's largest commitment of the year was one of neraqco, minority shareholders, and the Brazilian

$30.4 million in a $77 million nickel mining and re- public through a share offering.fining project in Brazil. The following financial institutions participated

The investment, consisting of a loan of $26 mil- in the IFC investment: The Chase Manhattanlion, an equity subscription of $4 million equiva- Bank, N.A., and Chemical International Finance,lent, and an equity underwriting commitment of up Ltd., both of the United States; Chemical Overseasto $400,000 equivalent, was made in Empresa de Finance Corporation, of Bermuda; The SanwaDesenvolvimento de Recursos Minerais "CODE- Bank, Ltd., and The Nippon Fudosan Bank, Ltd.,MIN" S.A. both of Japan.

The project was sponsored by Empresas Suda- The project is to be the first of its kind in Southmericanas Consolidadas, S.A., of Panama, the hold- America to produce pure nickel. It will be a fully

11

integrated operation, from mining the ore to re- Since it was established in 1956 IFC had investedfining 10,600 tons a year of nickel cathodes. The in 24 of these finance companies in 20 countries.project is not only expected to save foreign ex- For the first time, IFC helped one of these com-change by making Brazil virtually independent of panies-the Private Development Corporation ofnickel imports, but also to provide substantial earn- the Philippines (PDCP)-to raise resources abroadings of foreign exchange from the two-thirds of the by organizing a long-term loan on its behalf.production to be exported. The loan was for $15 million, of which IFC pro-

In addition to its annual export earnings, the vided $6.5 million, while $8.5 million was placedproject will provide employment for about 1,000 with four banks: Manufacturers Hanover Trustpeople in the little developed State of Goias. Company, The Bank of Tokyo, Ltd., Chemical

Bank and the Union Bank of Switzerland.PDCP provides both loan and equity financing

Financialpilan:to private enterprises in the Philippines. It was es-(U5$ million) tablished in 1963 with the support of a $15 million

Loan Capital loan from the World Bank. Equity capital wasInternational Finance raised by a local public offering, to which IFC sub-

Corporation ................ 26.0 scribed. Today shares in PDCP are widely heldSuppliers' credits .............. 16.5 both locally and by 18 European, Japanese andLocal credits .......... 4.5 47.0 U.S. banks and financial institutions.

The proceeds of the new loan were used by

Equity Capital PDCP to provide long-term financing for the for-

Companhia Brasileira do eign exchange element in its investments which, onMetalurgia e Mineracao ...... 8.0 the basis of its past operations, are expected to be

Empresas Sudamericanas concentrated in manufacturing, transportation andConsolidadas S.A ............ 5.8 power, with priority for export-oriented

International Finance enterprises.Corporation ................. 4.0

Morro do Niquel, S.A .......... 4.0"Brasimet" Comercio

e Industria S.A ................ 3.0Brazilian public ............... 2.7 TurkeyMineracao Sertaneja S.A ........ 2.1Minority shareholders .......... 0.4 30.0 As in the case of the Private Development Cor-

TOTAL .77.0 poration of the Philippines, IFC arranged a loanfor the Industrial Development Bank of Turkey(Turkiye Sinai Kalkinma Bankasi A.S.), a develop-ment finance company which provides both debtand equity financing to private enterprises inTurkey.

The loan was for $ 10 million, of which IFC pro-vided $5 million, while $5 million was provided byThe Industrial Bank of Japan, Ltd. The proceeds

DEVELOPMENT FINANCE will be re-lent by the Company to finance the for-eign exchange element of private investment proj-

With four commitments the Corporation's cumu- ects in Turkey.Formed in 1950, the Company is the oldest de-

lative gross commitments in the field of development vopmen inance Company ishedewt as-financing ~~ roet 9.0mlin velopment finance company established with as-

financing rose to $79.0 million. sistance from the World Bank Group; IFC hasbeen a shareholder since 1963.

The Company has grown with the Turkish econ-omy, and has been the major institutional source of

Philippines foreign exchange financing for private industry inTurkey. It has helped finance over 700 companies,

In the Philippines, IFC mobilized loan capital and has made an important contribution to devel-for a local development finance company. opment of the Turkish industrial sector.

12

MININGIFC has invested $82.1 million in 6 Miningprojects in 5 countries.

. ~- -' -}t+ .w _

_SE-w - - -

1970 MEXICO Minera del Norte SA

1972 PHILIPPINES Marnduque Mining and Industrial Corporation

1 3

Afghanistan pantia Financiera, known as COFIEC, by subscrib-ing to 13,689 shares for approximately $54,000.

Two affiliates of the World Bank, IFC and the In- The rights issue formed part of a plan to increaseternational Development Association (IDA), the share capital by S/28 million, from S/72 mil-joined the Da Afghanistan Bank and other Afghan lion to S/100 million. The capital increase was anand foreign investors in financing a new develop- essential element in the resource mobilizationment finance company to foster industrial develop- strategy which COFIEC has developed for the nextment in Afghanistan, a country where industrial four years.development has been inhibited by the lack of an Established in 1966, COFIEC is the only privateinstitutional source of long-term capital. development finance company providing long-

The Industrial Development Bank of Afghani- term financing to industries in Ecuador. Privatestan, the new Company, will provide medium and Ecuadoran investors hold 47.2 per cent of out-long-term loans and equity capital for industry. It standing shares, governmental shareholders 7.1 perwill also act as a catalyst in the development of new cent, and foreign and foreign controlled share-industrial projects. The bank will initially focus its holders 45.7 per cent. IFC, with 7.6 per cent of theattention on the development of the private sector. total, is COFIEC's second largest single

An IDA credit of $2 million will provide the shareholder.foreign exchange required by the Bank during itsfirst two years of operations. IFC, with $295,324equivalent, joined investors in Afghanistan andabroad in providing total equity capital of $3.6 mil-lion equivalent. Sixty per cent of the Bank's capitalis held by investors in Afghanistan while 40 percent is held by IFC, Chase Manhattan Bank, N.A.,and First National City Bank of New York, The In-dustrial Bank of Japan, Ltd., National Westminster CE MEN TBank, Ltd., of London, and Credit Lyonnais, ofFrance.

Tlhree investnents brought IFC's cumulative grossFinancialplan: commitments in the cement and otlher construction

(US$ million) materials sector to $116.1 million.

Loan CapitalDa Afghanistan Bank .......... 7.8International Development

Association .................. 2.0 9.8 MexicoEquity Capital

Afghan investors ............. 2.0 A loan of $10.5 million in Cementos Veracruz,Chase Manhattan Bank. N.A .... 0.3 S.A. helped to finance expansion of the cement pro-International Finance duction capacity of the Company's main plant at

Corporation ................ 0.3 Orizaba, from 250,000 metric tons to 600,000 met-First National City Bank of ric tons a year.

New York .................. 0.3 The Company is predominantly Mexican-National Westminster Bank, Ltd.. 0.3 owned: Mexican investors including CementosThe Industrial Bank of Japan, Ltd. 0.3 Apasco, another Mexican cement manufacturer,Credit Lyonnais ............... 0.1 3.6 hold 80 per cent of the share capital; the remaining

TOTAL.13.4 20 per cent is held by Holderbank of Switzerland,which provides technical, engineering and mana-gerial assistance under a long-term contract.

The IFC investment, in which the First NationalCity Bank of New York participated, consisted ofEcuador two loans totaling $10.5 million. Other loan capitalof $6.5 million equivalent was provided by Banque

IFC exercised its pre-emptive rights as a share- Francaise du Commerce Exterieur/Credit Lyon-holder of Ecuatoriana de Desarrollo S.A. Com- nais, France.

14

The balance of $6.9 million equivalent came possible co-sponsors. Two United States organiza-from a fully subordinated loan by a wholly-owned tions ultimately joined the venture as co-sponsors.subsidiary of Cementos Veracruz, and cash These were Kaiser Cement and Gypsum Corpora-generation. tion and Bamerical International Financial Corpo-

Cement consumption in Mexico has increased ration, a subsidiary of the Bank of America, N.T. &during the last decade at a rate of close to 10 per S.A.cent per annum; it is expected to continue growing The basic concept remained as at the time ofat about a similar rate, and the present capacity of IFC's first investment-to establish a cement plantthe local cement industry will soon be insufficient with an annual capacity of 500,000 metric tons toto meet the expected domestic demand. The Ce- serve the West Java market, now heavily depen-mentos Veracruz factory has already been oper- dent on cement imports. However, unforeseen de-ating at full capacity, and in order to maintain its lays, changes in the design and scope of the projecttraditional share of the market the Company has and increases in equipment costs combined to raisebeen obliged to expand its plant. The expansion is the original cost estimate by $9 million to $35 million.expected to be completed by the end of 1974, at a The Private Investment Company for Asiatotal estimated cost of $23.9 million equivalent. (PICA), S.A., and three United States institutions-

Chemical International Finance Corporation, Ltd..

Financial plan: Chemical Overseas Finance Corporation and(US$ million) Bamerical International Financial Corporation-

and Indonesian Development Finance Company,Loan Capital participated in the original IFC investment.

International Finance IFC sold participations in the second invest-Corporation ................ 10.5 ment to The Sanwa Bank, Ltd., The Bank of Tokyo,

Banque Francaise du Commerce Ltd., The Private Investment Company for AsiaExt6rieur/Cr6dit Lyonnais .... 6.5 (PICA), S.A. and to First Hawaiian Bank (USA).

Cementos del Sur(subordinated loan) .......... 2.7 19.7 Financialplan:

Cash Generation .4.2 (US$ million)TOTAL ........................ 23.9 Loan Capital

International FinanceCorporation:First loan .................. 10.6Second loan ................ 5.4

Bank Negara Indonesia 1946 .... 5.0 21.0

Indonesia Equity Capital

Kaiser Cement andIFC made a second commitment, of $6.1 million Gypsum Corporation.7.1

equivalent to P.T. Semen Cibinong. The commit- P. T. Semen Gresik. 3.5ment consisted of $5.4 million equivalent in loan International Financeand up to $684,000 equivalent in equity. The Cor- Corporation.2.7poration's first investment, made in June 1971, was Bamerical Internationalfor a total of $13.1 million-$10.6 million in loan, Financial Corporation.0.7 14.0$2 million in equity, and an overrun commitment TOTAL ................ ,.0.7435.0of up to $570,000.

The project grew out of IFC's offer, made in1967, to help the Indonesian Government promotea cement project. IFC helped to finance a geologi-cal survey of raw materials and a preliminary feasi-bility study. On the basis of these studies, the Cor-poration and the Indonesian sponsor of the project, CyprusP.T. Semen Gresik, a government-owned cementcompany and the largest in Indonesia, contacted IFC's first investment in Cyprus, of $2.8 millionexperienced manufacturers in several countries as equivalent, was made in The Cyprus Cement Com-

15

CEMENTIFC has invested $116.1 million in 26 Cementprojects in 20 countries.

3

,IAL ~AYS'A Ta,sef (i&rnent Befhad

97C~3 CYF?USj Clypn)s C-wxert 3§'cipG'ny. Lt!s 1 '73 ME VGO t eml i- C Lcz S A

TI _

_

_R

_4

pany, Ltd. The purpose of the investment was TOURISMto support a more than threefold increase in pro- Five investments, one each in Indonesia, Kenyaduction capacity, from 105,000 metric tons to and Turkey and two in Tunisia, increased the Corpo-345,000 metric tons a year. ration's cumulative gross commitments in this sector

The two major shareholders in the Company are ton's millive gthe Galatariotis Group, a leading Cypriot business to $40.6 million.group, and Holderbank of Switzerland. There are In,1 sialso about 300 local private shareholders. Indonesia

The IFC investment consisted of a loan of $2.3 IFC invested $11 million to help complete an in-million, an equity subscription of $0.4 million ternational first-class hotel in Jakarta, the Hotelequivalent, and a contingent commitment not ex- Borobudur Intercontinental, owned by P. T. Ja-ceeding $0.1 million. Barclays Overseas Develop- karta International Hotel.ment Corporation, Ltd., of London, participated in Construction of the hotel started 12 years ago,the IFC loan. but its completion was constantly delayed. IFC

Other loan capital of $4.7 million equivalent was played a major role in reorganizing the project. Theprovided by the National Bank of Greece and the hotel is now being completed by Compagnie deBank of Cyprus. Cooperation Economique Francaise, a French con-

In addition to the equity provided by IFC, other struction company; P. T. Perhotelan Banteng Baru,equity capital of$ 1.3 million equivalent came from a company predominantly owned by the Govern-the Bank of Cyprus and existing shareholders, ment of Indonesia; and by Intercontinental Hotelsavailable cash and cash generation. Corporation, which will train local personnel and

Technical management responsibility for the manage the hotel for 20 years.plant and its expansion was contracted to Hold- Total construction costs of the 870-room hotelerbank. The project is expected to be completed by are expected to be about $28 million, of whichearly 1975. Its total cost is estimated at $11.6 mil- $15.3 million has been provided by new financing.lion equivalent. To be opened in 1974, the hotel will be the largest in

Cement consumption in Cyprus has increased by Indonesia. About 1,300 Indonesians will be directlyan annual average of nine per cent over the past employed by the hotel, which is expected to earntwenty years without additional domestic produc- approximately $4 million net in foreign exchangetion. Cyprus would need to import increasing annually.quantities of cement from 1975 onwards. Thus the IFC's $11 million investment was in the form of aproject will help the country meet its growing senior loan with detachable warrants to buy shares.needs, maintain its self-sufficiency, and open the Realty and Mortgage Investors of the Pacificway for exports at competitive prices. "RAMPAC", USA, a real estate investment trust

managed by Bankoh Advisory Corporation, a sub-sidiary of the Bank of Hawaii, and The SanwaBank, Ltd., of Japan, participated in IFC'sinvestment.

Financialplan: Bank Dagang Negara, an Indonesian Govern-

(US$ million) ment-controlled bank, invested $1.2 million equiva-lent on the same terms as IFC. Additional equity

Loan Capital of $1.5 million equivalent was provided by Inter-International Finance continental Hotels Corporation, and $0.8 million

Corporation ................ 2.3 equivalent by the Government.National Bank of Greece ........ 2.3Bank of Cyprus ............... 2.3 6.9 Financial plan:

- (US$ million)

Equity Capital Existing NewBank of Cyprus ............... 0.7 Invest- Invest-Present shareholders ........... 0.7 ments ments Total

International Finance Loan CapitalCorporation ................ 0.4 1.8 Senior Loans

International FinanceCash Generation. 2.9 Corporation .- 11.0TOTAL . 11.6 Bank Dagang Negara .- 1.2

17

Subordinated Loans continental Hotels under a lease agreement withP.T. Perhotelan the Company.

Banteng Baru .......... 6.1 - The tourism industry in Kenya has developedCompagnie rapidly over the last decade. It is now Kenya's ma-

de Cooperation jor source of foreign exchange, and Nairobi is itsEconomique Francaise 2.4 - 20.7 focal point. It is thus important that Nairobi should

have hotel facilities to meet a steadily increasingEquity Capital tourist demand.

Compagniede Cooperation Financial plan:Economique Francaise 2.2 - (US$ million)

P.T. Perhotelan Loan CapitalBanteng Baru ........ 1.6 - International Finance

Intercontinental Hotels Corporation ........ . 2.5Corporation .- 1.5 Export-Import Bank of

Government of Indonesia. - 0.8 6.1 the United States .0.8

Cash Generation .......... - 0.8 0.8 First National City BankCash G t...-8of New York .0.8 4.1TOTAL ................... 12.3 15.3 27.6

Equity CapitalKenya Tourist Development

Corporation, Ltd . .0Intercontinental HotelsKenya Corporation .0.3International Finance

A third commitment of approximately $2.8 mil- Corporation ................ 0.2lion was made in Kenya Hotel Properties, Ltd., of Barclays Overseas DevelopmentKenya. In 1966 and 1968 IFC invested a total of Corporation, Ltd .0.1 1.6$3.2 million in this Company.

The Company owns the 210-room Hotel Inter- Cash Generation .0.1Continental, located in the center of Nairobi, which TOTAL .5.8was financed in part by IFC and opened in May1969. The project was an expansion of this hotel,expected to be ready by February 1975.

The largest shareholder in the enterprise is Inter-continental Hotels Corporation, a wholly-owned Tunisiasubsidiary of Pan American World Airways, whichmanages the existing hotel. With an investment of $2 million equivalent,

Following the expansion, 40 per cent of the share IFC joined Tunisian interests and Thomson Holi-capital will be owned by private investors and 18.5 days, Ltd., a British international tour operator, inper cent by IFC. Kenya Tourist Development Cor- an $11.5 million tourist project, to build and oper-poration, wholly-owned by the Kenya Govern- ate a 2,142-bed tourist class hotel at Skanes, aboutment, will own 27 per cent and Development Fi- 90 miles south of Tunis.nance Company of Kenya, Ltd. (25 per cent owned The local sponsors of the project are Mr. Azizby the Kenya Government), will hold the remain- Milad, owner of the second largest travel agency ining 14.5 per cent. Tunisia and other local tourist interests, the Societe

IFC provided a loan of $2.5 million. Other loans Nationale d'Investissement (SNI), a developmentwere provided by the Export-Import Bank of the finance institution, and the Compagnie FinanciereUnited States and the First National City Bank of et Touristique (COFITOUR), a tourist promotionNew York. Equity capital totaling $1.6 million group.equivalent was subscribed by Kenya Tourist De- The hotel, to be owned by Societe Touristique etvelopment Corporation, Ltd., Intercontinental Hoteliere Rym, will be an important element in theHotels Corporation, IFC and Barclays Overseas most rapidly developing sector of the local touristDevelopment Corporation, Ltd., of London. Work- market, that catering for middle income visitorsing capital was to be provided separately by Inter- who travel to North Africa in organized groups for

18

TOURISMIFC has invested $40.6 million in 15 Tourismprojects in 10 countries.

~~~- a

1967, 1968, 1973 KENYA Kenya Hotel Properties, Ltd. 1972 MAURITIUS Dinarobin Inns and Motels, Ltd.

1973 INDONESIA Hotel Borobudur Intercontinental 1973 TURKEYAkdenizTunsticTesislerAS.

~~~~~~~~~~~~~~~,...,,- -- X,-y.z

I~~~~~~~p I

N.

r~ ~ ~ ~ ~ ~

one or two week holidays. It is expected to handle Turkey65,000 guests annually, primarily clients of Thom-son Holidays. IFC committed $603,000 equivalent to a $4.1

The major part of the IFC investment consisted million tourist project in Turkey, to be carried outof a $1.6 million loan. Other loan funds came from by Akdeniz Turistik Tesisler A.S., a Turkish tour-SNI and COFITOUR, in both of which IFC has ism company with foreign and local sponsorship.invested, and from local banks. The project is planned as a holiday village, with

IFC also subscribed $0.4 million equivalent (10 dwelling units, restaurants, and recreational facil-per cent) of the equity capital, of which Thomson ities spread out over 70 hectares of park land onHolidays, Ltd. holds 50 per cent, inclusive of con- Turkey's Mediterranean coast near Antalya. Ini-tingent financing, with the remaining 40 per cent tially the village will accommodate 700 guests, plusheld by Mr. Aziz Milad, SNI, COFITOUR, and a resident staff of 100. Future expansion will bringother Tunisian investors. total guest capacity to 1,000. The bulk of this clien-

In the decade 1961-1971 the number of foreign tele is expected to come from Western Europe byvisitors to Tunisia increased by 30 per cent a year, air charter package tours.reaching 640,000 in 1971. In the same period earn- The Company is sponsored by Valtur Turchiaings from tourism rose from $3 million to an esti- S.p.A., an Italian tourism development and pro-mated $110 million. The growth in tourism has al- motion company, which presently owns and oper-ready led to a shortage of hotel capacity, and tour ates a number of similar holiday villages in Italy.operators have found it increasingly difficult to ac- The other shareholders are Yapi ve Kredi Bankasicommodate their clients-with the result that they A.S., a major Turkish commercial bank, and Trans-are now beginning to build their own hotels in turk Ticaret A.S., a Turkish trading and manu-Tunisia. facturing company.

Among these the new hotel will be the largest of IFC's investment consisted of a loan of $250,000,its type. It is expected to earn an annual average of a share subscription of about $268,000 equivalent,$7.2 million in foreign exchange. It will be under and a contingent commitment for an additionalTunisian management, and will provide direct em- loan not exceeding $85,000. Other loan capitalployment for 460 workers in winter and 680 in amounting to $607,000 was provided by Italiansummer. suppliers' credits. Equity capital totaling $3.2 mil-

lion equivalent was subscribed by Valtur, Yapi ve

Financial plan tKredi Bankasi, Transturk, and by IFC.(US$ million) IFC's involvement in the project was the result

Loan Capital of the Corporation's efforts to encourage invest-ments in the as yet undeveloped Turkish tourism

CompugniesFinanie ...... et....... 1industry. The project is one of the first major for-Touristique.. 2.1 eign investments in tourism in Turkey and hope-

fully will serve to attract others. It is important ford'Investissement ............ 2.1 Turkey because it will provide employment and

International Finance earn foreign exchange by opening for tourism aCorporation . . ...........1.6Tunisratian banks .......... . 01.9 region which has few other resources.

Tunisian banks .................... 0.9Thomson Holidays, Ltd ....... 0.7 7.4

Financial plan:(U$mlinEquity Capital Loan capital(US$ million)

Thomson Holidays, Ltd ....... 2.1 Suppliers' credits ............. 0.6Tunisian Travel Services and International Finance

Mr. Aziz Milad . ......... 0.6 Corporation .0.3 0.9Other Tunisian shareholders .... 0.4International Finance Equity Capital

Corporation ................ 0.4 Valtur Turchia S.p.A .2.1Societe Nationale Yapi ve Kredi Bankasi A.S ....... 0.6

d'Investissement ............ 0.3 Transturk Ticaret A.S .0.2Compagnie Financiere et International Finance

Touristique ................. 0.3 4.1 Corporation ........ ........ 0.3 3.2TOTAL .. 11.5 TOTAL .4.1

20

Tunisia binat Belisce, four companies in the Federal Re-public of Germany and one in Austria. The fiveforeign companies are supplying equipment for the

lent, representingfivespermcent of theshreqpital, project, in which they have taken an equity par-lent, representing five per cent of the share capiltal, tiiain Th on etr wl ekonain the Societe d'Etudes et de D6veloppement de ticipation. The joint venture will be known asSousse Nord, a promotional company to be estab- Belisce-Bel.' . . ~~~~~~~ER-WE-PA Maschinenfabrik und Eisengiessereilished to study and promote a tourism resort project Herbert Karl Schmidt, leader of the foreign con-north of Sousse, Tunisia. The other shareholders sortium, will provide paper-making machinery;

are the Compagnie Financite et Touristique Siemens A.G. will supply electrical equipment;(COFITOUR) and the Soci&t6 Nationale d'Inves- Dush acc n icxAG ilspltissement (SNI), in both of which IFC is a share- Deutsche Babcock und Wilcox A.G. will supplytissement .SI) inbt.fwih F sasae water treatment and steam generating equipment,holder, and the Office National du Tourisme et du and steamcgenerin ement,

' . ~~~~~~~~and W.H.K. Peters Maschinenfabrik GmbH ma-Thermalisme, the government agency for the de- chinery for making corrugated containers. Pulpvelopment, supervision and control of tourism. mill equipment will come from Vereinigte Oes-

The Sousse Nord project is an integrated large qrc h gisen und Stahlwerk e Oes-terreichisehe Eisen und Stahlwerke A.G. (Voest)

scale tourism complex to be established on an areaof 290 hectares of undeveloped land, near El Kan- in Austria.

'29hetrsfudvlpdldne a IFC's commitment consisted of two loans, one oftaoui, bordering the beaches of Northern Sousse. them convertible into equity, both denominated inThe concept of establishing a fully integrated resort Dnhas not yet been applied in Tunisia. Such a concept Deutsche mark. The Internat,onal Investment Cor-

ensures better utilization of land and introduces a IoCain nt. Othr lng ter iiane, tingnew oursm dvelpmen pln qute istict rom IFC investment. Other long-term finance, totaling

the present pattern of building separate and iso- DM59 million equivalent, was provided mainly bylathe prtelse pattngder of building satnio KomunalnaBankaiStedionicaOsijek(OsijekCom-

aThedplanenvisagessixluxury hotels,alongsidetmunal Bank), a Yugoslav regional bank, and inThe plan envisages six luxury hotels, four first- th for of frinsple'cedt. Eqiy'ud

class hotels, and two second and fourth class hotels, the form of foregn suppllers' credats. Equfty fundsin addition to a number of villas and apartments, of DM26 million equivalent came from the com-with a total of 13,000 beds. Also included in the pany and the foreign partners.

project are a commercial center,amarinThe rapid growth of industry in Yugoslavia hasproecae cmmrc e, a , gf created a demand for modern packaging materials

course, beach club and sports and health centers. in excess of domestic capacity to supply them. TheThere will be a post office, police premises, banks project will help meet this rising demand. Atand a medical clinic.and a medical clinic.~~~~~~~~>_ full production it will provide 300 direct new jobs.

The total cost of the project is estimated at $70- f75 million, including the price of the land and the Sales volume will be almost tripled, from 42,000

secondary infrastructure facilities. The basic in- metric tons to 117,000 metric tons a year-an in-frastructure will be provided by the Government. crease which, by reducing imports, will benefit Yu-When completed it is expected to create 6,000 new goslavia's balance of payments.jobs and significantly increase Tunisia's foreign ex- Financialplan:change earnings. (US$ million)

Loan Capital

PULP AND PAPER Suppliers' credits .............. 16.2International Finance

An investment in theexpansionofapulpandCorporation "A" Loan .10.3An nvstmntInthe expansion of a pulp and paper KouanBnk

plant in Yugoslavia brought IFC cumulative gross Komunalna Banka 7commitments in this sector to $117.3 million. Stedionica Osijek 7.2

International Finance

Yugoslavia Corporation "B" Loan .3.3Kombinat Belisce ............. 0.9 37.9

An investment of DM33 million made in a Yugo- Equity Capitalslav-German-Austrian joint venture helped to Kombinat Belisce .6.8expand production of one of Yugoslavia's largest Belisce-Bel .4.0 10.8manufacturers of paper and packaging materials. TOTAL 487Partners in the DM 118 million project were Kom-

21

PULP AND PAPERIFC has Invested $117.3 million in 22Pulp and Paper projects in 16 countries.

_

$ ,__' i.

(9 z * S * \ .1965, 1972 ARGENTINA Celulosa Argentina, S.A.

1970 KENYA Panafncan Paper Mills (E.A.), Ltd.

1970 PHILIPPINES Paper Industries Corporation of the Philippines (PICOP)

_ _,_. ........................................................... .. ...___ ._

MOTOR VEHICLES tion of plants and models has been avoided and im-portant economies of scale in the domestic produc-

Support of the expansion of a motor vehicle plant tion of parts and components have been achieved.in Iran brouiglht IFC's cumulative gross commitments Financialplan:in this sector to $64 million. (US$ million)

Loan CapitalIran Chrysler United Kingdom, Ltd... 26.0

Suppliers' credits .11.2IFC invested $11 million in a $92.1 million proj- International Finance

ect sponsored by Sherkate Karkhanejate Sanati Corporation ... .... 11.0Iran National, Sherkate Sahami Khas (Iran Na- Industrial and Miningtional Industrial Manufacturing Company, Ltd.), Development Bank of Iran .... 7.7 55.9the largest producer of motor vehicles in Iran.

The purpose of the investment was to help fi- Cash Generation36.2nance the Company's expansion and integration TOTAL.... 92.1program aimed at increasing passenger car assem-bly, establishing an engine manufacturing plantand providing additional working capital. STEEL

The Company produces passenger cars and pick-ups under license from Chrysler United Kingdom,Ltd., and buses, mini-buses, light trucks, vans and An IFC in vestment in a new steel plant in Brazilambulances under license from Daimler-Benz AG, increased the Corporation's cumulative gross com-Stuttgart, Germany. The Company's main plant is initments in the steel sector to $68.6 nmillion.located on the Karaj Highway, about 20 kilometerswest of Teheran.

The Company's share capital is entirely owned Brazilby the Khayyami family, a leading Iranian indus-trial and banking group, but steps are being taken With an investment of $9 million IFC joined theto broaden the ownership in accordance with Gov- Banque de la Societe Financiere Europeenne, ofernment directives to spread ownership of large in- France, in support of a $43.1 million equivalentdustrial concerns. steel project. The project, undertaken by Com-

The IFC investment was in the form of a loan of panhia Siderurgica da Guanabara (COSIGUA), a$11 million equivalent. The Bank of Montreal, Brazilian company operating a scrap-based steelCanada, National and Grindlays Finance and producing plant near Rio de Janeiro, has an initialDevelopment Corporation, Ltd., of London, and annual productive capacity of 220,000 tons of wireFrench American Banking Corporation, USA par- rods and concrete reinforcing bars.ticipated in the IFC loan. Other loan capital total- Sponsors of this project are the Gerdau Group ofing $44.9 million came from the Industrial and Porto Alegre, which already owns and operatesMining Development Bank of Iran, and from sup- three similar plants in Brazil, and August Thyssenpliers' and other credits. Cash generation provided Huette A.G., of Duisburg-Hamborn, Germany,the remaining $36.2 million. one of the largest steel-makers in Europe.

The project will create some 3,000 new jobs Thyssen is supplying the necessary technical as-directly, as well as a large number at the level of sistance and supervision for the start-up period oflocal suppliers of parts, distribution and mainten- what is their most important steel venture in Southance. The country will also benefit from the inflow America. A training program, including the train-of technology and direct foreign exchange savings. ing of key operating personnel in Germany at one

The rapid pace of Iran's economic development of the Thyssen steel plants as well as in Brazil atis causing an increasing demand for passenger cars Gerdau's existing plants, has been developed forand other means of transportation, and the Gov- Brazilian technicians.ernment is encouraging a large investment pro- The IFC investment consisted of a loan of $7 mil-gram designed to develop a truly independent au- lion and $2 million in equity. Orion Termbanktomotive industry. With only three manufacturers Ltd., of London, and European Bank for Mediumproducing passenger cars in the country, prolifera- Term Credit, Brussels, participated in the IFC loan.

23

Other loan capital of $6.8 million equivalent was Iranprovided, parallel with the IFC loan and on similar

conditions, by the Banque de la SociIt Financl're IFC joined Iranian and United States investors inEurop6enne. the establishment of a $10.5 million equivalent

Equity capital of $16.7 million equivalent was.. lproidey _th Gerda Gron Thyssen. The carbon black plant in Iran, the first in the country,

to be built and operated by a new company, Sher-other shareholders of COSIGUA contributed $1.3 kate Sahami Carbon Iran, Sahami Khass (Iranmillion equivalent.

Suppliers' credits were to account for $5.9 million Carbon Company, Ltd.).equialet. he emanin $3. milio eqivaent The Iranian sponsors of the project were the

equivalent. The remaining $3.3 million equivalent National Petrochemical Company of Iran, a sub-was to be provided by the Company's own cash sidiary of the Government-owned National Iraniangeneration and local borrowing.

Over the last two decades the consumption of Oil Company, and the Industrial and Mining De-steel in Brazil has increased at an average annual velopment Bank of Iran. The foreign sponsor was

rate of about nine per cent. To meet theexpected Cabot Corporation, of the United States, one of therate of about nine per cent. To meet the expected wol' edn rdceso abnbak

market~~~~ ~ grwh th Brzla telidsr a world's leading producers of carbon black.embarket go th abriio a seliustry ha Of the Company's loan capital totaling $6 mil-embarked on an ambitious program formulated by lion, IFC provided $3 million.the National Steel Council. l

The project fits into this program. It is the first National and Grindlays Finance and Develop-steel venture in the State of Guanabara, and its lo- ment Corporation, Ltd., of London, and the Bank

cation oteotaSebof Iran and the Middle East participated in the IFCcation on the coast, at Sepetiba Bay, is well suited investment. Other loan funds were provided by thefor future expansion. With a modern plant of eco-nomic size, close to the main markets of Rio de Ja- Industrial and Mining Development Bank of Iran.neiro and Sao Paulo, the project will make inten- Equity capital totaling $4.5 million equivalent

sive use of locally available raw materials and will was subscribed by Cabot Corporation, Nationalprovide employment for about 800 workers. Petrochemical Company of Iran, the Industrial and

Mining Development Bank of Iran, by private

Financialplan: Iranian investors, and by IFC.(US$ million) The plant is designed to produce 15,000 tons of

Loan Capital carbon product mix in the first stage and 30,000tons after an expansion in the fourth year of pro-

International Finance duction. It is located at Ahwaz, about 80 miles fromCorporation ................ 7.0 Abadan, near a major oil refinery, which will sup-

Banque de la Societe ply the necessary feedstock. Operating personnelFinanciere Europeenne ....... 6.8 and labor for the project will be entirely Iranian,

Suppliers' credits .............. 5.9 and Cabot will train Iranians to assume full man-Local borrowing ............... 0.1 19.8 agement responsibility within six years.

Equity Capital The new plant will supply some 95 per cent of

Siderurgica Riograndense Iran's carbon black requirements, particularly for(Gerdau) . 8.0 the tire and rubber industry, and will also produce

August Thyssen Huette A.G. . . ... 7.7 exports to countries bordering the Persian Gulf, theInternational Finance Red Sea and the Indian Ocean. Altogether, during

Corporation ................ 2.0 the first ten years of operation the enterprise is ex-Other Brazilian shareholders .... 1.3 pected to contribute about $30 million to Iran's bal-Gerdau/Thyssen Brazilian ance of payments.

holding company ........... 1.0 20.0 Financial plan:(US$ million)

Cash Generation . .3.3TOTAL . .43.1 Loan Capital

International FinanceCorporation ................ 3.0

CHEMICALS Industrial and Mining

With two commitments, to new plants in Iran and Development Bank of Iran 3.0 6.0

the Philippines, the Corporation's cumulative gross Equity Capitalcommitments in this sector rose to $41.5 million. Cabot Corporation .2.2

24

STEEL ,, w11r,35 Aws d Afaro S

IFC has invested $68.6 million in 15 Iron r; frand Steel projects in 10 countries.

4~ .^ r

,9N . !qG5 19h6 i'J6,, a EXIC -Ft, vddra AICIT,fey S A

J0

.1~~~~~~~~~~~~Q ,

v ,,":.Iat ': ' -

ysi'' - --.--eW __ _e_

CHEMICALS 196,, TANv ocl here L.e. Ghemfd l LO

IFC has invested $41.5 million in 9 Chemicaland Petrochemical projects in 6 countries.

i970~~~~~~~~~~~~~~ SRs " ,,' e;

National Petrochemical Company employees andCompany of Iran ............ 0.9 planters and others .......... 0.3 2.2

Industrial and Mining TOTAL.................... 5.3Development Bank of Iran .... 0.5

Private Iranian investors ........ 0.5International Finance

Corporation ................ 0.4 4.5TOTAL .. 10.5

CAPITAL MARKETSA line of credit provided to a syndicate ofprivate

Ph ilI ippi nes Brazilian investment banks, and support of a savingsand loan corporation in Colombia, increased IFC's

An investment of $2.2 million was made in Vic- cumulative gross commitments in this sphere totorias Chemical Corporation (VCC) which will $6 million.manufacture furfural, a chemical product used inoil refining and other industrial processes requiringselective solvents. Brazil

The total cost of the project was estimated at $5.3million. IFC's investment consisted of a loan of The Corporation extended a line of credit of $5$1.9 million and an equity subscription of $342,000. million to a syndicate of Brazilian investmentAdditional loan capital of $1.2 million was pro- banks: Banco de Investimento do Brasil, S.A.; Ban-vided by the Export-Import Bank of the United co Bozano, Simonsen de Investimento S.A.; BancoStates. Other equity subscriptions were made by Itau de Investimento S.A.; Banco Real de Investi-Victorias Milling Company, and by Victorias Milling mento S.A.; B.M.G. Banco de Investimento S.A.;Company employees and supplier sugarcane planters. and Banco Finasa de Investimento S.A.

The Company is a subsidiary of Victorias Milling The purpose of the credit was to provide finan-Company, the largest sugar producer in the Philip- cial support for the underwriting activities ofpines. The plant will use a new process developed Brazilian investment banks in conjunction within Finland and will have an annual productive ca- FUMCAP(FundodeDesenvolvimentodoMercadopacity of 5,000 metric tons of furfural, using locally de Capitais), a revolving capital market develop-available sugar cane bagasse as the primary raw mentfundcreatedbytheCentralBanktostrengthenmaterial. It will be located next to Victorias Milling and improve Brazilian capital market institutions,Company's existing facilities in Victorias, Negros practices and instruments.Occidental, 400 miles south of Manila. IFC's line of credit and FUMCAP, now capital-

Over 80 per cent of VCC's annual output is to be ized at $49 million, are to make available to invest-exported to Japan and Southeast Asian markets, ment banking institutions, for limited periods, partthe balance to be consumed in the Philippines. The of the working capital they need to underwrite newPhilippine Petroleum Corporation, a company in issues of equity and long-term debt securities ofwhich IFC invested $8 million in 1971, is expected Brazilian enterprises. In addition, part of the FUM-to be a major domestic consumer. CAP resources are to be used for liquidity loans to

Financial plan: support the market for such new issues through sys-(US$ million) tematic market-making activities.

Loan Capital The provision of funds to investment banks forInternational Finance these purposes is intended, directly or indirectly,

Corporation ................ 1.9 to: induce the investment banks to assume a great-Export-Import Bank of er role in the underwriting of corporate securities in

the United States ............ 1.2 3.1 Brazil and to perform this activity on a sound basis;improve the access of Brazilian enterprises to do-

Equity Capital mestic sources of long-term funds by facilitatingVictorias Milling Company ...... 1.6 the issue of shares and debentures, and encourageInternational Finance savers to invest in sound domestic corporate

Corporation ................ 0.3 securities.

27

Colombia Bolivia, thereby increasing its cumulative grosscommitments in thisfield to $43.2 million.

For the first time IFC supported the housing sec-tor when it made an equity investment of $318,201equivalent in a savings and loan corporation in Ni rColombia-Corporaci6n Colombiana de Ahorro igeriay Vivienda (DAVIVIENDA). The investment gaveIFC a 20 per cent shareholding in the Company, Cottonseed crushingwhich finances housing construction and promotes With loan funds of $1.6 million equivalent, IFCprivate residential ownership. joined Nigerian and British investors in financing

Housing finance in Colombia had traditionally a $5 million cottonseed oil mill in Nigeria, to bebeen provided by two government-sponsored insti- owned by the Funtua Cottonseed Crushing Com-tutions. However, the amount of resources avail- pany, Ltd.able to these institutions has limited their ability to The new enterprise is located in the North-narrow the country's increasing housing shortage, a Central State of Nigeria, where a large part ofshortage which has become especially severe as a Nigeria's cotton is grown. It has the support of theresult of a rapid rate of urban migration. Accord- North-Central State Government and of a numberingly, the Government of Colombia, as a part of its of prominent local businessmen who providedNational Development Plan, authorized the crea- the majority of the share capital.tion of a system of saving and loan corporations to Management and sales responsibilities are to beattract deposit resources directly from the public carried out by Lewis and Peat, Ltd., of London, aand to channel these resources specifically towards major shareholder in the venture and a leading Eu-financing the housing gap. DAVIVIENDA started ropean commodity brokerage house which also hasoperations, as part of this system, in November interests in agro-industry.1972. IFC's assistance was needed to provide the Com-

The purpose of IFC's investment was to broaden pany with part of the foreign exchange cost. IFCthe Company's equity base and to contribute ac- provided $1.6 million equivalent in the form of twotively to the development of the Company in the long-term loans, one denominated in US dollarsbroader framework of its efforts to contribute to the and one in pounds sterling. Barclays Overseas De-orderly development of the financial sector as a velopment Corporation, Ltd., of London, partici-whole. pated in IFC's sterling loan.

Financialplan: The balance of the loan capital was provided by(US$ million) the Nigerian Industrial Development Bank and

Barclays Bank of Nigeria.Equ ity Capital Equity capital df $2.4 million equivalent was pro-

Banco de Bogota .......... ......... .39 vided by Lewis and Peat, Ltd., the Nigerian NorthInternational Finance Corporation .... :32 Central State Government, Barclays OverseasCorporaci6n Financiera Colombiana . . .26 Development Corporation, Ltd., and local share-Bolivar Insurance Group ...... ...... .22 holders.Colseguros Group ........ .......... .22 Cotton is one of Nigeria's major cash crops, butSeguros Tequendama Group ......... .09 its by-product has hitherto been partly wasted, andBanco Frances e Italiano ...... ...... .08 the crushing of oil-seeds grown in Africa has takenVivienda Andina Group ............. .02 place mainly in Europe. The new project is Ni-Fernando Mazuera & Cia., S.A ........ .02 geria's first vegetable oil mill specifically designed

TOTAL ............................. 1.62 to process cottonseed. The bulk of the production isto be exported to Europe. On completion of theplant in 1975, the annual capacity will be 37,500tons a year of cottonseed, but it is designed for ex-pansion to 75,000 tons a year.

By processing cottonseed produced mainly byGENERAL small farmers, the project will form an integrated

MANUFACTURING part of the rural economy in Northern Nigeria, pro-viding new employment for more than 100 workersIFC supported two new projects in Nigeria, and and a new source of foreign exchange for the Nige-

the expansion of two projects in Zambia and rian economy.

28

GENERALMANUFACTURINGIFC has invested $43.2 million in 17 GeneralManufacturing projects in 13 countries.

- A

-ii. ~ g

j1I* F *. ,

1964, 1968 MEXICO Industria del Hierro, SA. 1970 TUBK(EYAnadolu Cam Sanayl,,A.S.

1972 ZAMBIA Zambia Bata Shoe Company, Ltd. 1973 BOLIVIA Plasmar, S.A.

I

~~w _--'"'-;

Financial plan: The plant, which will create 160 new jobs and is(US$ million) expected to result in net foreign exchange savings

of up to $1 million a year, will obtain its main rawLoan Capital materials from Alusuisse, who will also he respon-

International Finance sible for operating the mill and providing technicalCorporation ...................... 1.6 assistance.

Nigerian Industrial The rapid expansion of Nigeria's economic de-Development Bank .......... 0.8 velopment in recent years has resulted in an accel-

Localbanks............ . 0.2 2.6 erated demand for construction materials, includ-

Equity Capital ing aluminium profiles, due to their high resistanceto corrosion. A local aluminium extrusion plant

Nigerian Peat, Ltd ............ 1.9 based on imported billets had thus become eco-Lewis and Peat, Ltd.0.4 nomically feasible. The new plant will cover theBarclays Overseas

Development Corporation, Ltd. 0.1 2.4 greater part of local demand, at present met entire-TOTAL 5. 0 ly by imports, mostly from Europe.TOTAL ............. 5.0

Financialplan:

Aluminium profiles (US$million)

A new aluminium project in Nigeria was sup- Loan Capitalported by IFC with an investment of $1.2 million International Financeequivalent. It consisted of a loan of $912,000, and Corporation .0.9an equity subscription of $304,000 equivalent. Nigerian Industrial

The project, to be carried out by Nigerian Alumi- Development Bank .......... 0.9nium Extrusions, Ltd., will establish the first alumi- Subordinated revolving credit ... 0.8nium extrusion and anodizing plant in Nigeria. Lo- Societe International Financierecated at Oshodi, near Lagos, it is expected to start pour les Investissements et leoperations by 1975, and to produce annually 2,400 Developpement en Afrique ... 0.4 3.0metric tons of aluminium profiles for local Equity Capitalconsumption. Swiss apital

The main sponsors of the project are Swiss Alu- Swiss Aluminium , Ltd.0. 5minium, Ltd., Zurich (Alusuisse) and Union Trad- Union Trading Company. Ltd. . 0.5ing Company, Ltd., Baslc (UTC-Basle). Alusuisse is International Financeone of the world's leading producers of aluminium. Corporation ................ 0.3Its Nigerian subsidiary, Alumaco, has been pro- Nigerian Industrialducing aluminium products from imported profiles Development Bank, Ltd. ..... 0.2for the local construction industry since 1961. Societe International FinanciereUTC-Lagos, a subsidiary of UTC-Basle, is Ni- pour les Investissements et legeria's largest trading company with varied busi- Developpement en Afrique 0.2ness interests in the country. Great Nigeria Insurance

The total cost of the project was estimated at $4.9 Company, Ltd ............... 0.1million equivalent. The share capital amounted to National Insurance$1.9 million equivalent, of which the main sponsors Corporation of Nigeria ....... 0.1 1.9provided the majority. 'Fhe remainder was pro- TOTAL. 4.9vided by two government-owned Nigerian insur-ance companies and by three financial institutions:the Nigerian Industrial Development Bank, Ltd. Zambia(NIDB), Societe Internationale Financiere pour lesInvestissements et le Developpement en Afrique Tanning(SIFIDA), and IFC. IFC is a shareholder in bothNIDB and SIFIDA. A second investment consisting of a loan of $1.2

Loans totaling $2.2 million were provided by million was made in Zambia Bata Shoe Company,IFC, the Nigerian Industrial Development Bank Ltd., the largest producer and marketer of shoes inand SIFIDA, and a revolving credit supplied by a Zambia, to help finance the construction andlocal bank accounted for the remainder. operation of a tannery, located at Kafue near the

30

Company's facilities at Lusaka. The tannery will the IFC standby loan. The remaining $206,000transform 300 local raw hides daily into leather was to come from cash generation.to meet the requirements of the shoe factory, of Plasmar, S.A. is a producer of pvc piping, roof-which IFC supported an expansion in 1972. ing sheets and floor tiles and Bolivia's major cable

The total cost of the tannery project was esti- manufacturer. Net sales in 1972 amounted to aboutmated at $2.5 million. Loan capital of $1.2 million $1 million equivalent. The Company needed newwas provided by IFC, and cash generation account- finance to expand and modernize its production fa-ed for the remaining $1.3 million. National and cilities to meet the needs of Bolivia's mining, con-Grindlays Bank, Ltd., of London, participated struction and industrial sectors.with IFC in this investment. Although of modest size, the project is of consid-

Zambia produces about 72,000 raw hides per erable local importance. Specifically, through theyear. Approximately 70 per cent are exported, and backward integration of its operations, the Com-most of the remainder goes to waste. At the same pany will benefit from reduced input costs, whichtime Zambia imports all its leather requirements. will in turn represent foreign exchange savings.The country, being landlocked and having high There will also be benefits in terms of added em-transportation costs, can thus achieve substantial ployment and development of management skills.benefits by establishing a tannery which would use More generally, the availability of a wider rangelocal raw hides to produce leather to meet domestic of cables, pipes and plastic articles from a domesticrequirements. source of supply will have significant advantages.

The project will provide the Company with a Bolivia's industrial and mining environment gener-reasonably secure supply of leather, thus reducing ates a demand for cables and plastic products notits reliance on imports. Considered as an integral normally found in other countries of equal popu-part of the Zambian Government's policy aimed at lation and development, but the country's land-a progressive integration of the leather and shoe in- locked position has hitherto caused costly delays industry, it will be implemented in the context of the deliveries of imported cables and pvc compounds.Second National Development Plan, which in-cludes incentives to potential investors in the man- Financial plan: (US$ million)ufacturing sector. Loan Capital

Financialplan: International Finance(US$ million) Corporation .0.2

Banco Industrial S.A. 0.2Loan Capital ADELA Investment Company ... 0.1 0.5

International Finance Equity Capital

5ashrGeneration ............. ..... 1.3 ADELA Investment Company... 0.2Cash Generation ............ . International FinanceTOTAL .................... 5.... .5

= Corporation .0.1Industria de Cobre Peruana

(INDECO), S.A. 0.1Bolivia Public subscription

(International FinanceCables and Plastic Products Corporation standby)C........ 0.1 0.5

IFC's first investment in Bolivia, $400,000 in Cash Generation .0.2loan and equity for cables and plastic products, was ........................ 1.2made in Plasmar, S.A. The investment consisted ofa loan of $200,000; a standby loan of up to$100,000; and an equity investment of $100,000.

The total cost of the project is $1.2 million. Loan FOOD AND FOODcapital totaling $550,000 was provided by Banco PROCESSINGIndustrial S.A., a private Bolivian Bank, ADELAInvestment Company, S.A. and IFC. Equity capital With a standby commitment to a public issue inamounting to $490,000 equivalent was provided by Venezuela and an investment in Iran, IFC increasedIndustria del Cobre Peruana (INDECO), S.A., its cumulative gross commitments in this sector toADELA, IFC and the new share issue covered by $28.4 million.

31

AGRIBUSINESSIFC has invested $85.6 million in 20 Agribusiness(fertilizers and food and food processing)projects in 15 countries.

'~~~~~~~~~~~~~~~~~/

1966 COLOMBIA Almacenes Generales 1967, 1972 BRAZIL Ultrafer/il, S.A. Industria e Comercio de Fertilizantesde Deposito Santa Fe, S.A. "Almaviva"

1969, 1972, 1973 VENEZUELA Protinal, C.A.

32 _

32

Venezuela Bamerical International Financial Corporation, asubsidiary of the Bank of America, N.T. & S.A.,

IFC made a standby commitment to C.A. Ve- the Agricultural Development Fund of Iran, andnezolana de Desarrollo (Sociedad Financiera) other investors in Iran. The remaining $3.1 mil-(CAVENDES) to purchase unsecured debentures lion will come from the Company's own cashof Protinal C.A. of Venezuela, for an amount up to generation.. . . ' . ~~~~~~~The Iranian economv has shown an im ressive$3 million equivalent. CAVENDES, a private de- I lvelopment finance company of which IFC is a overall growth rate during the past decade, but the

velopment agricultural sector has lagged and is now given highshareholder, was to underwrite one-half of the $6.8 priority by the Government. Among the means

million equivalent issue, the other half being un- being tried to spur agricultural development isderwritten by other local underwriters. v . v

IFC's commitment was in the form of a standby large-scale commercial farming designed to in-commitment to purchase up to $1.7 million crease output by application of modern production

lent and a contingent commitment to purchase and management techniques.to $1.3 million equivalent of debentures. Financialplan:

IFC had previously assisted CAVENDES in four (USs million)

underwriting transactions.Protinal, one of the largest Venezuelan-owned Loan Capital

enterprises, is also the largest manufacturer of International Financeanimal feeds in the country. In addition to owning Corporation ....... ....... 1.3and operating its own plant in Valencia, it is also a Agricultural Developmentshareholder in fifteen integrated subsidiaries. The Fund of Iran .............. 1.3Group's combined output provides for about one- Bamerical Internationalhalf of the country's internal demand. Financial Corporation

The issue, which was successfully marketed dur- and other sources ............ 0.7 3.3ing the offering period in August 1972, helped theCompany to finance an expansion program which Equity Capitalincluded a 50 per cent increase in the productive Agricultural Developmentcapacity of its main plant, the continued develop- Fund of Iran ................ 0.3ment of a national grain cultivation program, and Bamerical Internationalthe formation of new poultry farms. Financial Corporation ........ 0.3

Other Iranian andAmerican shareholders ....... 0.2

Iran Trans World AgriculturalDevelopment Corporation

An investment of $1.3 million, in the form of a of California ........ ........ 0.2 1.0loan with options to purchase shares, was made in Cash Generation . .3.1Iran California Company, an Iranian agribusiness TOTAL 7.4enterprise which is developing a large-scale farm inthe Dez area of the Khuzestan province, where adam was built and irrigation facilities are being setup with assistance from the World Bank.

The project was sponsored by Trans World Agri- TEXTI LEScultural Development Corporation of California,in conjunction with the Agricultural Development Support for further expansion of a textile enter-Fund of Iran, and Bamerical International Finan- prise in Ethiopia increased IFC's cumulative grosscial Corporation, a subsidiary of Bank of America. commitments in this sector to $71.8 million.

The total cost of the project is estimated at $7.4million. Long-term loans of $3.3 million were sup-plied by IFC, the Agricultural Development Fund Ethiopiaof Iran, Bamerical International Financial Corpo-ration, and other local sources. Equity capital of A third IFC commitment of approximately $1.7$1 million was provided by Trans World Agricul- million equivalent was made in Cotton Companytural Development Corporation of California, of Ethiopia, S.C., the largest.producer of textiles in

33

Ethiopia. It was to help the Company to finance an count for some 37 per cent. Among the latter isexpansion and modernization program which in- Fuji Spinning Company, Ltd., of Japan, whichcluded the acquisition of a new acrylic yarn plant provides technical management. Fuji is a memberand the replenishment of its working capital. of Overseas Spinning and Weaving Company, the

The total cost of the program was estimated at majority shareholder in Arewa Textiles, Ltd.,approximately $4.5 million. IFC provided a loan Nigeria, in which IFC has also invested.of $1.5 million, and equity capital totaling $1.4million equivalent, was provided by the Corpora- Fnancialplan$ million)

tion and other shareholders.The new plant is to be owned and operated by Loan Capital

a wholly-owned subsidiary established for this International Financepurpose. It will produce 600 tons per annum of Corporation ................ 1.5acrylic yarn from imported fiber and will provide Commercial Bank255 new jobs. Expected to be in commercial pro- of Ethiopia (S.C.).1.0duction by September 1973, it should eliminate Suppliers'credits ......... ..... 06 3.1the need for imports of the widely-used grades of Syarn, thus helping the Company to retain its lead- Equity Capitaling role in Ethiopia's textile industry. International Finance

IFC's two previous investments were made in Corporation and other1965 and 1970, and it now holds 16.3 per cent of existing arehotherthe share capital. Local holders have another 46 existingshareholders 1.4per cent of the shares while foreign interests ac- T OT A L 4.5

IFC Commitments by Types of BusinessMillions of U.S. Dollars

1957-1973

Pulp & Paper Products ..... I 117.3

Cement & Other Construction Materials ........ I 116.1

M ining ....................................... 1 82.1

Development Finance Companies .............. I 1 79.0

Textiles & Fibers .............................. I 71.8

Iron & Steel .................................. 1 68.6

Motor Vehicles & Accessories .................. I 64.0

Fertilizers ........................ 1...... I 57.2

General Manufacturing ....................... I 1 43.2

Chemical & Petrochemical Products ............ 1 41.5

Tourism .............................. I 40.6

Food & Food Processing ...................... 28.4

Utilities, Printing & Publishing .......... ........ 23.5

Machinery .......................... ... C=I] 8.8

Money & Capital Markets .. ................... a 6.0

34

THE YEAR'SFINANCIAL RECORD

Page

Summary .......... .................... 36Balance Sheet .............. ................ 37Statement of Income and Expenses .......... ............ 38Statement of Changes in Resources

Available for Commitment ........................... 39Statement of Loan and Equity Investments ......... ....... 40Notes to Financial Statements ........................... 45Report of Independent Accountant ....................... 45

35

IV. THE YEAR'S FINANCIAL RECORDSummaryCumulative Commitments Reserve

Commitments by IFC in fiscal 1973 of $146.7 All of the Corporation's net income has beenmillion brought cumulative gross commitments by transferred to the Reserve Against Losses. Duringthe Corporation since it began business in 1956 to 1973 this Reserve was charged with $3 million$848.1 million (as mentioned on page 6). Cumula- representing losses on investments. Since 1956 loss-tive net commitments, taking into account cancel- es have amounted to $5.1 million. At the end of fis-lations, terminations and write-offs, increased dur- cal 1973 the Reserve stood at $75.8 million.ing the year from $658.9 million to $792.7 million.

Return on InvestmentsPortfolio At June 30, 1973, the average annual return on

At the close of the fiscal year, the Corporation equity investments held by the Corporation overheld a portfolio of $465.2 million consisting of their present life was 7.84 per cent, and the similarloans aggregating $345.9 million and equity invest- return on loans was 8.98 per cent. This resulted inments of$119.3 million. A year earlier the portfolio an average annual return of 8.51 per cent, com-consisted of $301.3 million in loans and $116.3 mil- pared to 8.80 per cent at the end of fiscal 1972.lion in equity, making a total of $417.6 million. These returns reflect dividends, interest and other

charges, gains and losses on sales of portions of in-

Disbursements vestments, and miscellaneous charges and credits.

Disbursements during the fiscal year amountedto $88.1 million, bringing cumulative disburse-ments to $512.7 million. Sources of IFC Funds

Millions of U.S. dollars

IncomeCapital Subscriptions ...... ............ $107.2

IFC's gross income in fiscal 1973 was $21.5 mil- World Bank Loans .297.4

lion, consisting of$ 16.5 million of interest and com- Netherlands Loan. 5.0

mitment charges on loans and other income, Reserve Against Losses ............ 75.8

$3.2 million of dividends, and $1.8 million net gain Repayments ............ 66.0

on sales. Administrative expenses and financial Sales ............ 261.5

charges on borrowings totaled $15.3 million. Net Total Resources ............. ,,,,,,,,,,,,,,$812.9

income for the fiscal year thus amounted to $6.2million as against $8 million in the previous year.

Five-year Summary-Fiscal years 1969-1973Thousands of United States dollars

1969 1970 1971 1972 1973Grosscommitmentsbyyears ....... $ 92,876 $ 111,853 $ 101,435 $ 115,649 $ 146,741Gross commitments, cumulative1 .... 364,670 476,5 18 577,815 693,761 848,082

Project costs by years ....... ....... 484,487 492,746 433,508 688,536 480,700Total project costs, cumulative2 .... . 2,116,443 2,609,189 3,042,697 3,731,233 4,211,933Sales ............................. 44,868 18,989 14,237 39,755 65,021Total income ...................... 12,210 16,396 16,422 21,007 21,532Net income3 ....................... 7,690 10,196 6,171 7,951 6,250Reserve against losses, cumulative. . 48,615 58,811 64,982 72,518 75,786

1 Includes exchange adjustments to prior years' commitments.2 Total new investment financed by IFC and from other sources in assisted enterprises.3 Commencing in 1971 net gains on sales ot investments have been credited to the income account. Net income for 1969 and 1970 has been restated to include

such gains.

36

Balance Sheet /ntemational Finance Corporation

June 30, 1973 and June 30, 1972Expressed in United States Currency-See Notes to Financial Statements.

1973 1972

AssetsDUE FROM BANKS ......................................... . $ 656,091 $ 1,061,167

INVESTMENTSShort-term obligations of governments (At cost oramortized cost; face amount $1,951,680-1973,

$1,048,640-1972) .................... $ 1,918,021 1,046,175Accrued interest ........................................... 8,143 228

1,926,164 1,046,403LOAN AND EQUITY INVESTMENTS (At cost) ........... .. ........... $465,190,930 417,594,411Less-lnvestments signed but not yet effective ...................... 96,891,654 100,514,392Effective loan and equity investments ......... ................... 368,299,276 317,080,019(Including undisbursed balance $84,580,221-1973,

$63,264,561-1972) 1973 1972

Loans . $258,448,837 $214,900,753Equity . 109,850,439 102,179,266

ACCRUED INCOME ON LOANS-Note B ........ .................... 5,934,338 5,302,809

RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION ANDDEVELOPMENT-Note C ...................................... 193,008,943 182,300,000

RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOAN ANDEQUITY INVESTMENTS SOLD OR AGREED TO BE SOLD-Note B(Including undisbursed balance $24,344,743-1973,

$13,832,618-1972) ..................................... 27,025,275 17,032,620

OTHER ASSETS ............................................. 390,935 276,231TOTAL ............................................... $597,241,022 $524,099,249

Liabilities, Reserve and CapitalLIABILITIES

Accrued charges on borrowings ................................. $ 2,138,190 $ 1,672,745Accounts payable and other liabilities ............................ 688,424 653,838Undisbursed balance of effective loan and equity investments

Held by Corporation . ...................................... $ 84,580,221 63,264,561Agreed to be sold ............... 24,344,743 13,832,618

108,924,964 77,097,179

Loans from International Bank for Reconstruction andDevelopment-Note C

Undrawn ............................................. $193,008,943 182,300,000Withdrawn and outstanding .......... ...................... 104,392,767 77,700,000

297,401,710 260,000,000

Loan from the State of the Netherlands-Note C ..................... 5,000,000 5,000,000

RESERVE AGAINST LOSSES-Note D .......... ..................... 75,785,734 72,518,487

CAPITAL

Capital stockAuthorized 110,000 shares of $1,000 par value each

Subscribed 107,211 shares-1973, 107,157 shares-1972 ............ 107,211,000 107,157,000Payment on account of pending subscriptions .................... 91,000 -

TOTAL ............................................... $597,241,022 $524,099,249

37

Statement of Income International Finance Corporation

and ExpensesFor the Fiscal Years Ended June 30, 1973 and June 30, 1972Expressed in United States Currency-See Notes to Financial Statements.

July 1-June 301972/73 1971/72

IncomeIncome from obligations of governments and time deposits ........... . . . . . . . . . . . . . . . . . . . . $ 77,427 $ 280,000Income from loan and equity investments and standby andunderwriting commitments:

Interest ............................................................... . 14,788,287 12,518,415Commitment charges ....... .............................................. . 1,489,619 1,135,700Dividends(') ............. .............................................. . 3,193,496 4,454,747Commissions and profit participations ............... .. . .. .. .. . .. .. . .. .. . .. .. . .. . 93,469 72,861

Net gain on sales of loan and equity investments ............. . . .. . . . .. . . . . .......... 1,842,022 2,519,225

Other income .............................................................. . 47,617 26,058

TOTAL INCOME ......... .............................................. . $ 21,531,937 $ 21,007,006

ExpensesAdministrative expenses(2 ) ..... .............................................. . $ 7,538,860 $ 7,059,123

Charges on borrowings ....................................................... . 7,743,358 5,997,044

TOTAL EXPENSES ........ .............................................. . $ 15,282,218 $ 13,056,167

Net Income-Allocated to Reserve Against Losses-Note D ................................ $ 6,249,719 $ 7,950,839

(u The policy of the Corporation is to record dividends when received.(2) The International Bank for Reconstruction and Development is charging the Corporation an annual "Service and Support Fee"

which for the year ended June 30, 1973 had been fixed at $1,460,000 ($1,398,000-1972).

38

Statement of Changes in International Finance Corporation

Resources Availablefor Commitment

For the Fiscal Years Ended June 30, 1973 and June 30, 1972Expressed in United States Currency-See Notes to Financial Statements.

July 1-June 301972/73 1971/72

Source of ResourcesNet income ........................................................... . $ 6,249,719 $ 7,950,839Capital subscriptions ............................... . 54,000 -Loans from International Bank forReconstruction and Development ................. . ............................ . 40,000,000 60,000,000Increase in borrowings as a result of currency revaluations ........... . ............... . . . . 551,710 -

Repayments of loans ......................... ................................. 21,235,484 7,297,923Commitments sold:

Loan . $ 62,091,587 35,802,703Equity.2,929,489 ...... 3,952,639

65,021,076 39,755,342Commitments cancelled or written off .................. . .......................... . 21,022,254 1,160,288Translation adjustments as a result of currency revaluations..- 71,750

TOTAL SOURCE OF RESOURCES ................. . . $154,134,243 $116,236,142

Application of ResourcesCommitments signed (Including commitments not yeteffective $113,441,869-1973, $108,283,359-1972)Loan ................................ $136,030,994 $100,496,503Equity . .............................................. .......... .10,709,602 15,151,971

$146,740,596 115,648,474Exchange adjustments-prior years' commitments .... 7,580,369 297,748

$154,320,965 115,946,222Net increase in disbursed loans as a resultofcurrencyrevaluations .. 554,369 915

Repayment on loan from International Bankfor Reconstruction and Development .. 3,150,000 -

Losses on investments-Note D .. 2,982,472 486,500TOTAL APPLICATION OF RESOURCES .................. . .... . ... $161,007,806 $116,433,637

Net Decrease in Resources Available for Commitment . . .$ 6,873,563 $ 197,495

Note-Resources available for commitment consist of capital, reserve against losses and borrowings less loan and equity investments.

39

Statement of Loan and Equity InvestmentsJune 30, 1973Expressed in United States Currency-See Notes to Financial Statements,

Investments held by the Corporation UindishousedOriginal (including undisbumsed balances) baance of

Fiscal years commitments loans andin which including Total loans eqoity

OOUNTRY commitments exchange and equity investmeatand Obligon Type of buisiness were made adjustments Loans Equity (ot coot) agneements

AfghanistanI Industrial Devglopment Book of Afghanistan......Development fiouncing 1973 $ 295,324 t2t $ - $ 295,324 $ 295,324 $ 295,324 1

Argentina2*Acintdar Industria Argentina de Acgrgos, S.A ...... Steel products 1960 3,660,000 - - - - 23Pape~lera Rio Paran6, S.A.............Pulp and paper 1960 3,000,000 - -- - 34 Fdbrica Argentina de Engranaies, S.A.I.C ....... Aotomotive transmissions 1961 1,500,000 400,000- 400,000 - 45 and gears 56 0Pasa, Petroquimica Argentina, S.A.I.C. ....... Petrochemicals 0962 3,050,000 - -- - 67 Celulosa Argentina, S.A.t)... ......... Pulp and paper 1965, 1972 12,500,000 6,000,000 - 6,000,080 6,0C,00~l0 78 Dalmine Siderca, S.A ... ........... Steel products 1969 3,000,000 500,000 - 500,000 - 09 Editorial Cudex Sociedad An6ninna.. ....... Printing and publishing 1969 7,000,000 2,271,990- 2,271,990 - 9

10 Calera Avellaneda, S.A..............Cement 1971 5,000,000 5,000,000 - 5,000,000 4,000,000 1011 500,OOOtt2t 500,000 - 500,000 500,000 0112 TOTAL 39,210,000 14,671,990 - 14,671,990 10,500,000 12

Australia13 *Dluncan's Holdinags, Ltd .. ........... Lumber and mill prnducts 1958 660,000 - -- - 1314 nRubbertex (Australia) Proprietary, oIst.......Robber prodacts 1959, 1960 315,000 ---- 1415 TOTAL 975,000 - -- - 15

Bolivia16 Plasmar, S.A.................Plastic products 1973 400,00012) 300,000 100,000 400,000 400,000 16

Brazil17 *Siomens do Brasil Cia, de Electricidade........Electrical equipment 1957 2,000,000 - - - - 1718 n0linkraft, S.A. Celulose e Papel .. ... ..... Pulp and paper 1958 1,200,000 - - - - 1819 a*D.L.R. Pldsticos do Brasil, S.A .. ........ Automotive parts 1958 450,000 - - - - 1920 'Willys.Overland du Brasil, S.A. lod6otnia e Com6rcio Motnr vehicles 1958 2,450,000 - - - - 2021 *Cnmpanhia Mineira do Cimentn Pgrtland, SA.0.....Cement 1959 1,200,000 - - - - 2122 Champion Celulose, S.A .. ........... Pulp 1959 4,000,000 - - - - 2223 Acos Villares, S.A.ttt ........ ... Steel 1966, 1960, 0072 9,026,016 3,430,000 163,390 3,593,390 3,667,000 2324 Papel e Celulone Catarinense, S..0)......... Pulp and paper 1966, 1969 7,191,001 920,635 3,132,857 4,061,492 - 2425 Ultraf6rtil, SA.-Ind6otria e Cnmdrcic, do Fertilizantestlt Fertilizers 1967, 1972 11,249,760 5,874,760 2,945,414 8,020,174 - 2526 Petroquimica Uniao, S.A.............Petrochemicals 1969 8,380,000 3,726,250 2,046,000 5,772,250 - 2627 Polioletinas, S.A. Ind6stria e Comrrci ........ Petrochemicals 1970 8,377,100 4,687,500 1,999,620 6,687,120 - 2728 Oxiteno, S.A. lod6stria e Com6rcio .. ....... Petrochemicals 1971 5,860,000 4,600,000 1,260,000 5,860,000 87,506 2829 1971 180,000121 - 180,000 080,000 180,000 2938 Ind6stria de Celulose Borregaard, S.A. ....... Pulp 1971 4,900,000 4,900,000 - 4,900,000 - 3031 Companhia do Cimento Nacional do Minas .. .... Cement 1972 25,053,552 4,383,800 3,200,000 7,583,800 16,145,319 3132 Cornpanhia Siderurgica da Guanahara (Cosigua).....Steel 1973 9,000,000 2,000,000 2,000,000 4,000,000 - 3233 Capital Market Development Fund (FUMCAP) .. ... Capital market deuelopment 1973 5,000,000i2t 5,000,000 - 5,000,000 5,000,000 3334 Empresa de Desenvolvimento do Recursos Minerais 3435 (Codemin) 5A.0...... ........ Nickel mining and refining 1973 30,400,00012) 14,080,000 3,900,000 17,900,000 30,400,000 3536 TOTAL 136,818,309 53,530,945 20,827,289 74,358,234 55,479,825 36

Chile37 Empresa Minera do Mantos Blancos, S.AI.)......Copper mining and smelting 1958, 1959, 1966 4,337,500 - 1,237,500 1,237,500 - 3738 Fideos y Alimentos Carozzi, S.At.0.........Food products 1959, 1965 1,653,846 - 153,846 153,846 - 3839 *Cmno Bi6-Bid, S.Alt).. .......... Cement 1960, 1961, 1965 1,300,000 - - - - 3940 Compatia Manutacturera de Papeles y Cartones, S.A.... Pulp and paper 1963 3,000,000 132,000 - 132,000 - 4041 Minera Sagasca, S.A ... ........... Capper mining and leaching 1970 10,900,000 10,250,000 450,000 10,700,000 630,000 4042 TOTAL 21,191,346 10,382,000 1,841,346 12,223,346 630,000 42

China43 Asia Cement Corporation .. .......... Cement 1970 4,210,750 2,400,000 1,218,750 3,618,750 - 4344 Oriental Chemical Fiber Corporationto ........ Polyester fiber production 1970, 1971 5,625,000 3,750,000 675,000 4,425,000 - 4445 TOTAL 9,843,750 6,150,000 1,893,750 8,043,750 - 45

Colombia46 nLiminas del Caribe, Ltdo ........ Fibreboard 1959 500,000 - - - - 4647 Industrias Alimnnuticias Noel, S.At.0)........Food products 1968, 1965 2,062,094 160,640 58,402 219,052 - 4748 nEnvases Colomhianos, S.A0.. .......... Metal cons 1961 700,000 - - - - 4849 *Morfeo-Productos para el Hogan, S.A.l) .... ... Home furniture 1961, 1968 175,950 - --- 4950 nElectromanufacturas, S.A.............Electrical equipment 1961 500,000 - - - - 5051 Conporacidn Financiera Colombianattl).. ...... Develnpment financing 1962 2,023,730 - 2,023,216 2,023,216 - 5152 Corporaci6n Financiera Nacionalttt .. ....... Development financing 1962, 1963 2,042,000 - 1,195,074 1,195,074 - 5253 Compaflla Cnlombiana do Tejidos, S.At.).......Textiles 1963, 1967, 1968, 1969 2,126,415 - 63,663 63,663 - 5354 Corporacitin Financiera do Caldastl.........Development financing 1964, 1970 811,968 - 701,403 701,403 - 5455 Forias de Columbia, S.A0.1)............Steel forging 1964, 1968 1,267,502 - 1 1 - 5556 nAlmacenesGenerulesdeDep6sits SantaF`OS.A."Almaoiva" Warehousing 1966 1,000,000 - - - - 5657 Industria Ganadera Colombiana, S.A0.........Livestock 1966 1,580,542 286,000 580,542 866,542 - 5758 Enka do Colombia, S..0).11... ........ Textiles 1967, 1970 2,645,174 100,000 1,557,961 1,657,961 - 5859 *Compailia de Desarrollo do Hoteles y .59

60 Turismo, Ltda.-Hoturismo .. ........ Tourism 1969 5,935 - - - - 6061 Corporacitin Financiera del Norte(l'). ~..... Development financing 1969, 1973 453,762 - 453,762 453,762 - 6162 Corporaci6in Financiera del Vaile..........Development financing 1969 431,282 - 431,282 431,282 - 6263 *Promotora do Hvteles do Turismo Medellin, SA ..... Tourism 1970 330,421 - - - - 6364 Pro-Hoteles, S.A................Tourism 1970 1,019,432 733,400 156,470 889,878 16,774 6465 corponaci6o Colombiana do Aborro y Vivienda ........ Financing of bousing 1973 3 18,2011(21 - 3 18,201 318,201 3 18,201 6566 TOTAL 20,002,408 1,280,040 7,539,995 8,820,035 334,975 66

40

International Finance Corporation

Investments held by the Corporation UndisburnedOr,g,ral (including undishursed halances) balance of

Fiscal years commitments loans andin which including Total loans equity

COUNTRY commitments exchange and equity investmentand Obligor Type of busmess wrees made adjustments Loans Equiti (at coot) agreements

Costa Rica67 nProductos de Cencrete, S.A.(')...................Cencrete prodacts 1963, 1966 $ 589,551 $ - $ - $ - $ - 67

Cyprus68 Cyprus Cement Cempany, Ltd. ......... Cement 1973 2,783,700 1,694,750 443,700 2,138,450 1,540,000 6869 1973 100,00002) - 100,000 100.000 100,000 6970 TOTAL 2,883,700 1,694,750 543,700 2,238,450 1,640,000 /0

Ecuador71 La Internacional, S.A.t)....................Textiles 1966, 1972 3,963,309 1,887,000 172,157 2,059,157 - 7172 Ecuateriana de DOesarrollo, S.A. (Cempaflia Finaociera)ttl Develepment financing 1969, 1973 305,585 - 305,585 305,585 54,214 7273 TOTAL 4,268,894 1,887,000 477,742 2,364,742 54,214 7

El Salvador74 *Industrias Textiles, S.A.......................Textiles 1959 140,000 - - - - 7475 Heteles de Centre Amdica Seciedad Antinima. ....... Tourism 1969 933,600 600,000 233,400 833,400 - 7576 TOTAL 1,073,600 680,000 233,400 833,400 - 7

Ethiopia77 Cotton Company of Ethiopia, S.C.)0). ............. Textiles 1965, 1970 3,126,826 478,500 876,915 1,355,415 - 7778 1073 0,687,868(20 1,450,008 237,068 1,607,868 1,687,868 7879 Ethiopian Pulp and Paper, S.C .................. Pulp and paper 1966 1,908,501 - 1,208,806 1,208,806 - 7980 H.V.A.-Metahara, S.C........................Sugar 1968 9,044,698 4,140,000 2,228,358 6,386,358 - 8081 TOTAL 15,767,893 6,068,500 4,549,947 10,618,447 1,687,068 81T

Finland82 nOy Kutomotuote Ab, Tricol Oy, Tell Oy ............. Textiles 1960 156,000 .- - - - 8283 *Rauma-Repola Oy..........................Pulp, lumber, machinery 8384 and shipbuilding 1961 1,875,000 - - - - 8485 Teollistamisruhasto Oy-lndustnialization Fund 8586 ot Finland, Ltd ........................... Deeelopment tinancing 1964 307,288 - 150,270 150,278 - 8687 nHuhtamaki.yhtyma Oy .~......................Pharmaceuticals 1965 799,357 - -. - - 8788 TOTAL 3,147,645 - 150,270 150,278 - 88

Greece89 *AeAvol Industrial Compoany ot Organic Fertilizers, S.A. .... Fertilizers 1962 600,000 - - - - 8990 "Titan" Cement Company, S.Alt).. ....... Cement 1965, 1866 1,525,920 200,000 - 200,000 - 9091 National Inoestment Bank tar Industrial Development, S.A. Development financing 1066 719,082 - 719,0827 719,082 - 9192 General Cement Company, 5.A...........Cement 1066 3,500,080 1,750,000 - 1,750,000 - 9293 Aluminium do GrAce, SociWt Anonyme Industrielle 9394 et Commerciale(l)l... .......... Aluminum production 1907, 1972 8,652,750 1,347,000 2,882,796 4,229,796 - 9495 TOTAL 14,997,752 3,297,000 3,601,870 6,898,878 - 95

Guatemala96 relndustria Harinena Guatemalteca, S.A. ....... Flour milling 1959 200,000 - - - - 96

Honduras97 Empresa de Curtidos Centro Americana, S.Att).....Leather tanning 1964, 1966 377,500 19,350 66,750 86,100 - 9798 tmCompatiia Pino C-Aulosa de Centre Arn6rica, S.Alt.. .. Pulp and paper 1969, 1970 75,000 - - - - 9899 TOTAL 452,500 19,350 66,750 86,100 - ~99

India108 *Republic Forge Company, Ltd .. ......... Steel torging plant 1959 1,500,000 - - - - 100101 'Kirloskar Oil Engines, Ltd ...... ...... Diesel engiune 1959 850,000 - - - - 101182 'Atssam Sillimanite, Ltd . .... ...... Refractory bricks 1960 1,365,000 - - - - 102183 nK.SB. Pumps, Ltd...............Pumps, compressors 183104 and valves 1961 210,000 - - - - 104105 Precision Bearings India, Ltd.ttt.. ........ Bearings 1063, 1966 1,030,197 156,000 273,684 429,684 - 105106 Fort Gloster Industries, Ltd ...... ...... Tranomission cables 1964 1,211,047 50,750 - 50,750 - 106187 Mahindra Ulgine Steel Company, Ltd.........Steel products 1964 3,296,607 1,210,275 829,821 2,040,102 - 107108 Lakshmi Machine WVorks, Ltd .. ... ...... Textile machinery 1964 1,312,434 321,120 314,37t 635,491 - 108109 Jaysbree Chemicals, Ltd.............Chemicals 1967 1,154,816 212,088 - 212,088 - 109110 Indian Explosives, Ltd .......... ... Fertilizers 1967 11,462,437 3,140,000 2,263,322 5,483,322 - 110111 Zuari Agro Chemicals, Ltd.('tt.. ... ...... Fertilizers 1969, 1970 18,910,502 11,000,000 3,639,630 14,639,630 2,872,500 111112 TOTAL 42,303,040 16,090,233 7,320,830 23,411,067 2,872,500 112T

Indonesia113 P.T. Primateoco Indonesia............Textiles 1971 2,500,000 1,350,000 500,003 1,850,000 - 113114 P.T. Unitex ......... ........ Textiles 1971 3,300,000 750,000 800,000 1,550,000 - 114115 P.T. Semen Cibinongitl).. ........... Cement 1971 12,576,000 7,580,000 1,561,043 9,141,040 9,511,450 115116 1971, 1973 6,654,000)2) 650,000 1,168,503 1,818,500 6,654,000 116117 P.T. Kabel Indonesia-Kabelindon...... ... Cable manufacturing 1971 3,172,120 1,800,000 372,120 2,172,120 372,120 117118 P.T. Daralon Textile Manufacturing Corperation.....Textiles 1072 5,999,980(2) 3,375,000 1,124,980 4,499,980 5,999,980 118119 P.T. Jakarta International Hotel .. ........ Tourism 1973 11,O000,0002)t 4,000,080 - 4,080,000 11,080,000 119120 TOTAL 45,202,100 19,585,000 5,526,643 25,031,640 33,537,550 120

Note-l-estements hich hane been raly -caneile, Ceet-iated, e1ttee ff, atid, re.-deal orrpaid ar iendinaen w,thr we astersk. (continued)

41

Statement of Loan and Equity Investments (continued)

June 30, 1973Expressed in United States Currency-See Notes to Financial Statements,

lnvestments held by the Corporation UndisbursedOriginal (including undisbursed balances) balance of

Fisca years commitments loans andin which including Total loans equity

COUNTRY comnmtments exchange and equity investmentand Obligor Type of business were made adjustments Loans Equity (at cost) agreements

Iran121 *Sherkate Sahami Kahkashan .Ceramic tiles 1959 $ 300,000 $ - $ - $ - $ - 121122 Sherkate Sanami Navard va Luleh Ahwaz .Steel products 1969 3,874,361 1,797,500 636,538 2,434,038 - 122123 Sherkate Sahami Aliaf T . ................................ Textiles 1971 4,500,000 4,500,000 - 4,500,000 4,275,000 123124 Sherkat Sahami Kaghaz Pars .Pulp and paper 1972 13,993,443 10,215,000 1,779,148 11,994,148 12,000,000 124125 1972 200,000(2) - 165,000 165,000 200,000 125126 Iran California Company .Food products 1973 1,250,000(2) 1,250,000 - 1,250,000 1,250,000 126127 Sherkate Sahami Carbon Iran, Sahami Khass .Carbon black 1973 3,453,333 2,281,341 348,148 2,629,489 3,253,867 127128 1973 100,000(2) - 83,334 83,334 1CO,000 128129 Sherkate Karkhanejate Sanati Iran National, 129130 Sherkate Sahami Khas .............. ..... Automobiles 1973 11,000,000(2) 7,000,000 - 7,000,000 11,0C00,000 130131 TOTAL 38,671,137 27,043,841 3,012,168 30,056,009 32,078,867 131

Italy132 *Magrini Meridionale, S.p.A .................... . Electrical equipment 1960 960,000 - - - - 132

Ivory Coast133 Banque lvoirienne de Developpement Industriel, S.A .. .. Development financing 1965 204,082 - 204,082 204,082 - 133

Jamaica134 *Jamaica Pre-Mix, Ltd ....................... . Pre-mixed concrete 1961 224,000 - - - - 134135 Pegasus Hotels of Jamaica, Ltd ................ . Tourism 1969 2,913,000 1,308,146 678,501 1,986,647 1.3,000 135136 TOTAL 3,137,000 1,308,146 678,501 1,986,647 1.3,000 136

Kenya137 Kenya Hotel Properties, Ltd.(l) . r ., .l.l....................Tourism 0967, 1968 3,073,186 1,544,507 561,006 2,105,513 - 137138 1973 2,835,067(2) 2,650,000 185,067 2,835,067 2,835,067 138139 Panafrican Paper Mills (E.A.), Ltd. Pulp and paper 1970 14,781,980 6,406,000 3,241,638 9,647,638 7,531,806 139140 Tourism Promotion Services (Kenya), Ltd .Tourism 1972 2,420,000(2) 1,552,750 - 1,552,750 2,420,000 140141 TOTAL 23,110,233 12,153,257 3,987,711 16,140,968 12,786,873 141

Korea142 Korea Development Finance Corporation ...... . . . . . Development financing 1968 702,043 - 702,035 702,035 - 142143 Honam Silk Industry Company ... ............. . Textiles 1969 1,676,582 1,400,000 276,582 1,676,582 135.652 143144 *Atlas Paper Company, Ltd .................... . Pulp and paper 1970 5,000,000 - - - - 144145 Korea Investment and Finance Corporation .Capital market development 1971 653,102 - 653,102 653,102 - 145146 TOTAL 8,031,727 1,400,000 1,631,719 3,031,719 105,652 146

Lebanon147 *Filitex, S.A.L. Textiles 1971 930,000 - - - - 147148 Lebanese Ceramic Industries Co., S.A.L .Ceramic tiles 1971 1,200,000 700,000 - 700,000 - 148149 TOTAL 2,130,000 700,000 - 700,000 - 149

Liberia150 Liberian Bank for Industrial Development and Investment Development financing 1966 250,000 - 248,490 248,490 - 150

Malaysia151 Malaysian Industrial Development Finance, Berhad . Development financing 1964 1,307,500 - 817,500 817,500 - 151152 *Tasek Cement, Berhad .Cement 1966 1,559,381 - - - - 152153 Malayawata Steel, Berhad(l) .Steel 1968, 1969 3,693,489 883,000 1,016,001 1,899,001 - 153154 India-Malaysia Textiles, Berhad ... . ........ .... Textiles 1970 1,498,175 1,250,000 247,851 1,497,851 - 154155 TOTAL 8,058,545 2,133,000 2,081,352 4,214,352 - 155

Mauritania156 Societe Miniere de Mauritanie .Copper mixing and treatment 1968 20,006,515 8,217,262 723,909 8,941,171 - 156

Mauritius157 Dinarobin Inns and Motels, Ltd .Tourism 1971 614,900 542,010 - 542,010 - 157

Mexico158 oIndustrias Perfect Circle, S.A. ii) . Indus ial equipment 1958,1959 ............ Idutia.eupmnt158 .15 800,000 - - - - 158159 *Bristol de M6xico, S.A .Aircraft engine overhaul 1958 520,000 -- - - 159160 -Acero Solar, SA ........................... . Twist drills 1961 280,000 - - - - 160161 Fundidora Monterrey, S.A.0) Steel 1962, 1965, 1966, 1968 23,741,410 1,220,681 1,419,683 2,640,364 - 161162 Tubos de Acero de Mexico, S.A .Seamless steel pipes 1963 1,000,000 4,000 - 4,000 - 162163 0Quimica del Rey, S.A ............. ............. .Sodium sulphate 1963 750,000 - - - - 163164 Industria del Hierro, S.A.0) Construction equipment 1964,1966 1,961,569 - 360,288 360,288 - 164165 Minera del Norte, S.A .Iron ore mining 1970 1,500,000 750,000 - 750,000 - 165166 Celanese Mexicana, S.A .Textiles 1971 12,000,000 8,000,000 - 8,000,000 - 166167 Promotora de Papel Periodico, S.A. de C.V .Pulp and paper 1972 25,000 - 25,000 25,000 12,520 167168 Cementos Veracruz, S.A ............ .......... .Cement 1973 10,500,000Q) 6,000,000 - 6,000,000 10,500,000 168169 TOTAL 53,077,979 15,974,681 1,804,971 17,779,652 10,512,520 169

Morocco170 Banque Nationale pour le Developpement Economique . Development financing 1963 1,495,774 - 985,087 985,087 - 170171 Compatta Industrial del Lukus, S.A .Food processing and canning 1966 1,388,486 470,000 398,486 868,486 - 171172 TOTAL 2,884,260 470,000 1,383,573 1,853,573 - 172

Nicaragua173 Textiles Fabricato de Nicaragua, S.A .Textiles 1968 2,071,429 440,000 638,389 1,078,389 - 173

42

International Finance Corporation

Investm ents held by the Corporation UndisbursedOriginal rincluding undisbursed balances) balance of

Fiscal years commitment loans andin which including Total loans equity

COUNTRY commitments exchange and equity investmentaed Obligor Type of business were made adjustments Loass Equity (at cost) agreements

Nigeria174 Nigerian Industrial Development Bank, Ltd ........... Deoelopment financing 1964 $1,400,000 $ - $ 1,399,516 $ 1,399,516 $ - 174175 Arewa Teetiles, Ltd.l ....... l ....... Teetiles 1064, 1967, 1970 1,574,916 30,456 534,570 565,026 - 175176 Fentua Cottonseed Crtahing Company, Ltd ........... Cottonseed oil and by-products 1973 1,647,306i21 1,064,000 - 1,064,000 1,647,306 176177 Nigerian Aluminium Latrusions, Ltd ............... Aluminum 1973 1,216,OOOi2i 912,000 304,000 1,216,000 1,216,000 177178 TOTAL 5,830,216 2,006.456 2,238,086 4,244,542 2,863,306 178

Pakistan179 'Steel Corporation of Pakistun, Ltd. .............. Rolled steel products 1058 630,000 - - - 179180 *Adamlee Industries, Ltd ....................... Textiles 1959 750,000 - - - 180181 Ghnaribwal Cement, Ltd,).l .......ll ........ Cerment . 1962, 1965 5,668,407 2,668,516 417,328 3,085,944 181102 Pakistan Irdustrial Credit and Investment 182103 Corporation, LtdIt.O)........................ evelnpment fipancinig 1963, 1969 406,246 - 449,400 449,400 - 183104 Crescent Jute Products, Ltd ..................... Textiles 1965 1,950,000 961,079 - 961,979 - 184105 Packages, Ltd ............................. Paper producto 1965 3,151,662 1,020,500 604,945 1,625,445 - 185186 Pakiistan Paper Corpoiation. Ltd .................. Papar 1967 5,219,088 2,872,543 2,019,088 4,891,631 - 186187 Dawood Hercules Chenmicals, Ltd ................. Fertilizers 1969 3,923,253 - 2,023,253 2,923,253 - 107188 nourrapheli Paper Mile, Ltd ..................... Pulp and paper 1969 6,230,001 - - - - 188189 TOTAL 28,000,657 7,523,038 6,414,014 13,937,652 - 109

Panama190 Corporaci6n de Desarfollo Hotelero, S.A ............. Tourism 1971 1,472,500101 1,206,000 266,500 1,472,500 1,472,500 190

Peru191 *lndustrias Reunidas, S.A......................Home appliances 1960 250.000 - - - - 191192 *Lureo, S.A. and Ladrillos Calc6reos, S.A ............. Bricks 1960 280,000 ---- 192193 'Derisol del Perti, S.A .......................... Building materials 1960 300,8000- - - - 193194 Fertilizantes Sint6ticos, S.A.) Iti~ .... ...... Fertilizers 1960, 1962 4,083,290 107,040 - 107,040 - 194195 Cements Andino, S.AIl)...... ......... Cement 1962, 1968 2,461,500 - 90,000 90,000 - 195196 Compsatia de Cementb Pacasmayo, S.A.0 l ...... Cernent 1964, 1967 1,605,152 - 170,000 170,000 - 196197 TOTAL 8,979,942 107,040 260,000 367,040 - 197

Philippines198 Private D3evelopment Corporationsof the PhilippinesMt . Deoelopment financing 1963, 1973 19,359,063 6,522,774 - 6,522,774 - 190199 Manila Electric Company ..................... Electric power 1967 8,000,000 4,334,000 - 4,334.800 - 199200 Meralco Securities Corporation .................. Electric power 1967 4,000,000 - 3,639,020 3,639,020 - 200201 Philippine Long Distance Telephone Company ........ Utilities 1970 4,500,000 4,500,000 - 4,500 000 - 201202 Mariwasu Manofactudng, Inci().....ti ....... Flocr and wall tiles 1970, 1972 1,193,269 320,000 254,824 5740824 - 202203 Paper Industries Corporation ot the Philippines. ...... Pulp and paper 1970 2,207,541 - 400,110 400,110 - 203204 Philippine Petroleum Corporation ................ Pettoleum refinery 1971 8,010,000 6,200,000 1,800,000 0,000,000 1,695,534 204205 Marinduque Mining and Indest riat Corporation ........ Nickel mining and refining 1972 15,000,000l2i 15,000 000 - 15,000,000 15,000,000 205206 Victorias Chemical Corporation....... Chemicals 1973 2,192,000101 1,850 000 342,000 2,192,000 2,192,000 206207 TOTAL 64,451,073 38,727,574 6,435,954 45,163,528 18,807,534 207

Senegal208 Socidt6 Indentrnielle drEngrais au S6odgal ........... Fertilizers 1967 3,459,765 1,532 000 809,765 2,341,765 - 208209 Bud Senegal, S.A. ......................... Vegetable eeport 1972 51,467 - 50,467 51,467 - 209210 TOTAL 3,511,232 1,532 000 861,232 2,393,232 - 210

Spain211 0Fdhrica Espahiola Magnetos, S.AItI .. ...... Automotive electrical 1962, 1965, 1967 3,362,207 - - - - 211212 equipment 212213 Banco del Desarrollo Ecordic Espatiol, S.Al.).......Development financing 1963, 1965 585,352 - - - - 213214 ' lndustrias del Pape]l de Ia Celulosa, S.A ........... Pulp and paper 1972 9,562,499 - - - - 214215 TOTAL 13,510,138 - - - 215

Sri Lanka216 uPearl Textile Mills, Ltd. ....... Textiles 1970 3,250,000 .- - - - 216

Sudan217 Khartoum Spinning and Weaving Company, Ltd.(ll. .... Textiles 1964, 1972 2,21 1,795 260,000 272,637 532,637 - 217

Tanzania218 4Kilomhero Sugar Conmpany, Ltd.lIl ......... Sugar 1960, 1964 4,657,485 - - - 210

Thailand219 'Cnrt Products ard Aggregate Company, Ltd ....... Concrete products 1959 300,000 -- - - 219220 Industrial Finance Corporaltion of Thailand(')l. ... nu .. eelopment financing 1964, 1971 304,496 - 384,496 384,496 - 220221 Siam Cement Co., Ltd. ................ Cemenf 1969 22,081,560 3,804,357 2,42,589 5,840,946 - - 221222 TOTAL 22,766,064 3,0437 2427,085 6,231,442 - 222

Tunisia223 NPKO-Engrais, S.A.T........................Fertilizers 1003 3,500,080 - 1,148,029 1,148,029 - 223224 Socift6 Nationale d'lavestissement(lll ........ Development financing 1966, 1970 1,208,231 - 1,208,231 1,200,231 - 224225 Compagnie Financi6rn et Touristique, S.A.......... Tourism financing 1969 10,247,913 6,835,398 2,247,912 9,083,310 9,295,350 225226 Sociidt6 Touristique et Hoteli6re Rpm, S.A ............ Tourism 1973 1,994,698101 1,632,000 362,698 1,994,698 1,994,698 226227 Soci&1[6 d'Etudes et do D6veloppement de Soejsse-Nord . Tourism 1973 38,860120 - 38,860 30,860 38,860 227228 TOTAL 16,989,702 8,467,398 5,006,630 13,474,028 11,328,908 220

N.n.M--tnwienvOc Cave h ee b- ily oancniid sWr,nnatd, -ne- nff. -nid, rwd.-md yr repuld ae,,,e,natecJwr ant usteniv (continued)

43

Statement of Loan and Equity Investments (continued)June 30, 1973Expressed in United States Currency-See Notes to Financial Statements.

Investments held by the Corporation UndisbursedOriginal (including undisbursed balances) balance of

Fiscal years commitments loans andin which including Total loans equity

COUNTRY commitments exchange and equity investmentand Obligor Type of business were made adjustments Loans Equity (at cost) agreements

Turkey229 Turkiye Sinai Kalkinma Bankasi, A.S.() .... . . . . . Development financing 1964, 1967, 1969, 1972 $ 2,101,475 $ - $ 1,734,647 $ 1,734,647 $ - 229230 1973 10,000,0O0(2i 5,000,000 - 5,000,000 10,000,000 230231 Sentetik plik Fabrikalar, ASIM) . Textiles 1966, 1969, 1971, 1972 4,566,865 2,053,125 553,558 2,606,683 259,821 231232 Viking Kagit ve Seluloz,AS.M ................ . Pulp, paper and paper 1970, 1971 3,168,889 2,187,500 668,889 2,856,389 - 232233 products 233234 Anadolu Cam Sanayii,A.S .................... . . Glass and glass products 1970 11,583,330 6,695,850 1,583,330 8,279,180 1,116,691 234235 lasas-Aluminyum Sanayii ve Ticareti, A.S .Aluminum sheet and foil 1971 8,371,429 7,000,000 1,371.429 8,371,429 300,000 235236 Akdeniz Turistik Tesisler, A.S .Tourism 1973 602,857(2 335,000 267,857 602,857 602,857 236237 TOTAL 40,394,845 23,271,475 6,179,710 29,451,185 12,279,369 237

Uganda238 *Mulco Textiles, Ltd .Textiles 1965 3,508,436 - - - - 238239 Tourism Promotion Services (Uganda), Ltd .Tourism 1972 1,110,0002) 708,308 - 708,308 1,110,000 239240 TOTAL 4,618,436 708,308 - 708,308 1,110,000 240

Venezuela241 *Sider6rgica Venezolana "Sivensa", S.A.t) . Steel products 1960, 1964 3,140,529 - - - - 241242 uOiablitosVenezolanos, C.A .Food products 1961 500,000 - - - - 242243 C.A. Venezolana de Desarrollo (Sociedad Financiera)(l) .. Development financing 1964, 1968, 1971 18,836,183 - 1,224,833 1,224,833 - 243244 Dominguez y C(a.-Caracas, S.A.() .Tin cans 1966, 1972 1,514,541 - - - - 244245 Protinal, C.A.A) Animal feed 1969, 1973 5,064,178 374,026 - 374,026 - 245246 *Consolidada de Cementos, CA .Cement 1971 2,013,423 - - - - 246247 TOTAL 31,068,854 374,026 1,224,833 1,598,859 - 247

Yugoslavia248 International Investment Corporation for Yugoslavia . .. .Development financing 1970 2,000,000 - 2,000,000 2,000,000 1,000,000 248249 Zavodi Crvena Zastava/Fiat S.p.A.(i) .Automobiles 1970, 1972 13,000,000 5,000,000 7,400,000 12,400,000 - 249250 Tovarna Avtomobilov in Motoriev Maribor/ 250251 Klockner Humboldt-Deutz, A.G .Commercial vehicles 1971 9,722,131 7,500,000 1,481,421 8,981,421 5,374,031 251252 Fap-Famos Belgrade/Daimler-Benz, A.G.Commercial vehicles 1972 15,933,074 13,079,688 2,222,131 15,301,819 13,291,634 252253 SavaSemperit .Tires 1972 5,752,670 4,000,000 1,752,670 5,752,670 4,302,670 253254 Belisce-Bel Tvornica Papira, Pulp, paper and paper 254255 Poluceluloze I Kartonaze-Belisce .products 1973 13,579,688(2) 11,316,407 - 11,316,407 13,579,688 255256 TOTAL 59,987,563 40,896,095 14,856,222 55,752,317 37,248,023 256

Zaire257 Societe Financiere de Developpement ............ Development financing 1970 756,345 - 756,345 756,345 - 257

Zambia258 Zambia Bata Shoe Company, Ltd .Shoes 1972 1,077,642 456,930 227,642 684,572 400,505 258259 1973 1,200,000(2) 700,000 - 700,000 1,200,000 259260 TOTAL 2,277,642 1,156,930 227,642 1,384,572 1,600,505 260

Regional Investments261 Africa 261262 SIFIDA Investment Company, S.A ............ Development financing 1971 500,000 - 500,000 500,000 - 262263 Latin America 263264 ADELA Investment Company, S.A ............ Development financing 1970 10,000,000 10,000,000 - 10,000,000 - 264265 TOTAL 10,500,000 10,000,000 500,000 10,500,000 - 265

266 GRAND TOTAL $848,081,908 $345,900,302 $119,290,628 $465,190,930 $249,819,313 266

267 Less: INVESTMENTS NOT EFFECTIVE 140,894,349 87,451,465 9,440,189 96,891,654 140,894,349 267

268 TOTAL EFFECTIVE INVESTMENTS-1973 $707,187,559 $258,448,837 $109,850,439 $368,299,276(3) $108,924,964(4) 268

269 TOTAL EFFECTIVE INVESTMENTS-1972 $566,059,262 $214,900,753 $102,179,266 $317,080,019 $ 77,097,179 269

Note-Investments whch have been futty cancelled, terminated, written ofv, sold, redeemed or repaid are indicated with an asterisk.

SUMMARY Notes:Effective investments held by the Corporation ........ ......... $368,299,276 (1) The Corporation has made more than one commitment to this company.Investments not effective (including $44,002,695

agreed to be sold) .... 9............................ 1405894,349 (2) Commitment has been signed but does not become effective (i.e. funds may not bePrincipag repaymd nts toob he ovId oration)and reemtins........................... 66 140,89,349 withdrawn) until certain legal formalities have been completed and other conditionsPrincipal repaymnents to the Corporation snd redvmptionso .... 66,021,387 fulfilled.

Effective loan and equity investments sold or agreedto be sold ............................... ........ 217,510,030 (3) Includes undisbursed balance of $84,580,221.

Cancellations ....................................... 51,893,321Write-offs .. 3,463,545 (4) Includes $24,344,743 of investments which the Corporation has agreed to sell.Gross commitments ................................... $848,081,908 General: The operational investments are represented by loans and equity, as stated. In

addition, in certain investments, the Corporation has the right to acquire shares and/orparticipate in the profits of the enterprise.

44

Notes to Financial Statements Intemational Finance Corporation

June 30, 1973 and June 30, 1972 semi-annual principal instalments commencing on June 1, 1979, and hav-Note A-Translation of Currencies ing a final maturity date of December 1,t2000 with an interest rate equal toNote A-Translation of Currencies ~~~~~~the rate of cash dividend, if any, paid by the Corporation on its capital stock.The undisbursed balances of investment commitments made in currencies IFC may use the proceeds of this loan in any operation authorized by its Arti-other than United States dollars are translated into United States dollars at cles of Agreement.the approximate market rates of exchange.Equity investments disbursed in currencies other than United States dollars Note D-Reserve Against Lossesare expressed in United States dollars at the exchange rates which applied atthe time of disbursement. Loans disbursed and denominated in currencies Pursuant to action of the Directors the net income ot the Corporation has beenother than United States dollars are expressed in United States dollars at the allocated to the Reserve Against Losses and the future net income of the Cor-approximate market rates of exchange. poration will, until further action by the Directors or the Board of Governors,

be allocated to this Reserve.Note B-Accounts Receivable On May 23, 1973 IFC agreed, subject to conditions, to sell its entire invest-The amount of accrued income on loans includes $498,020 ($501,791-1972) ment in Editorial Codex, S. A. for an aggregate consideration of $4.8 million (ofwhich is not receivable by the Corporation within one year. which $2.5 million is for the account of participants), subject to certain adjust-The amount receivable from purchasers on account of effective loan and equity ments. The Reserve Against Losses has been charged with $1,845,010 repre-investments sold or agreed to be sold includes $2,672,024 ($3,200,002- senting the difference between the book value of IFC's investment and its1972) in respect of sales made on an instalment basis. Of this amount share of the sale price.$572,171 ($845,264-1972) is receivable by the Corporation within one year. The Reserve Against Losses has also been charged with $1,091,517 in respect

of the Corporation's equity investment in Forjas de Colombia, S. A. andNote C-Borrowings $45,945 representing net other adjustments.The Corporation's long-term borrowing comprises the following: Principal instalments of $2,590,383 and interest and other charges of(1) Loans totaling $297 million ($260 million-1972) from the International $812,847 due to the Corporation prior to June 30, 1973 have not been re-Bank for Reconstruction and Development. A commitment charge is payable ceived. Of these amounts $2,048,993 principal and $741,375 interest andon the undrawn balances of the loans at the rate of 3/4 of 1% per annum. other charges have been overdue for more than 90 days.Amounts withdrawn in currencies other than United States dollars are ex-pressed at the approximate market rates of exchange. The loans are repayablein semi-annual instalments due April 1 and October 1 as summarized below: Note E-Staff Retirement Plan

Principal Amount Interest Rate Maturity The International Bank for Reconstruction and Development has a contrib-($ millions) Per Annum Dates utory retirement plan for its staff which also covers the staff of the Corpora-

1973 1972 tion. All contributions to the retirement Plan and all other assets and income1973 1972 of the Plan are held by the Bank separately from its other assets and can be$197 $200 7% 1973 to 1989 used only for the benefit of the participants in the Plan and their beneficiaries.$100 $ 60 7-Y4% 1974 to 1993 Each participant contributes a percentage of his remuneration to the Plan. TheThe principal amounts repayable during the fiscal years ending June 30, 1974 Bank and the Corporation bear all expenses of the Plan and contribute a per-and 1975 will be $6.6 and $8.4 million respectively. centage of the participants' annual remuneration in relation to their respec-

tive staffs that approximates the actuarial cost of the Plan not providedThe proceeds of these loans may only be used by the Corporation in its lending by the contributions of the participants. Contributions to the Plan by theoperations. Corporation during the fiscal year ended June 30, 1973 amounted to(2) A loan of $5 million from the State of the Netherlands repayable in equal $422,171 ($382,686-1972).

Report of Financial StatementsIndependent Accountants Covered by the

1801 K Street, N.W. Foregoing ReportWashington, D.C. 20006

July 30, 1973

ToInternational Finance CorporationWashington, D. C.

In our opinion, the accompanying financial statements present fairly, in termsof United States currency, the financial position of International Finance Cor-poration at June 30, 1973 and 1972, the results of its operations and thechanges in resources available for commitment for the years then ended, inconformity with generally accepted accounting principles consistently applied. Balance SheetOur examinations of these statements were made in accordance with generally Statement of Income and Expensesaccepted auditing standards, and accordingly included such tests of the Statements of Changes in Resources Available for Commitmentaccounting records and such other auditing procedures as we considered Statement of Loan and Equity Investmentsnecessary in the circumstances. PRICE WATERHOUSE & CO. Notes to Financial Statements

45

46

APPENDICESA Statement of Subscriptions to Capital Page

Stock and Voting Power ....................... ..... 48B Governors and Alternates ........................... 49C Directors and Alternates and Their

Voting Power ............................ 51D Officers and Department Directors ........................... 52

47

Intema bonal Finance Corpora ion

Statement of Subscriptions to Appendix ACapital Stock and Voting Power

June 30, 1973

Subscriptions Voting Power Subscriptions Voting Pcwer

Amount Percent Number Percent Amount Percent Number Percent(in thousands of of of (in thousands of of of

Member of dollars) total votes total Member of dollars) total votes total

Afghanistan .$........... . . 111 .10 361 .27 Malawi ................. $ 83 .08 333 .25Argentina . .............. . 1,662 1.55 1,912 1.45 Malaysia . .......... . 277 .26 527 .40Australia . .............. . 2,215 2.07 2,465 1.87 Mauritania . ......... . 55 .05 305 .23Austria . ................ 554 .52 804 .61 Mauritius . ......... . 95 .09 345 .26Belgium . ................ 2,492 2.33 2,742 2.08 Mexico . ........... . 720 .67 970 .74Bolivia .......... . . . 78 .07 328 .25 Morocco . .......... . 388 .36 638 .48Brazil ... . .......... 1,163 1.09 1,413 1.07 Nepal ..... . ......... 55 .05 305 .23Burma . ................ 166 .16 416 .32 Netherlands . ......... . 3,046 2.84 3,296 2.50Canada ... . .......... 3,600 3.36 3,850 2.92 New Zealand .. .......... . 923 .86 1,173 .89Chile . ................ 388 .36 638 .48 Nicaragua . ......... . 9 .01 259 .20China ... . .......... 4,154 3.88 4,404 3.34 Nigeria .... . .......... 369 .34 619 .47Colombia . .............. . 388 .36 638 .48 Norway . ........... . 554 .52 804 .61Costa Rica ... . ......... 22 .02 272 .21 Oman ..... . ......... 36 .03 286 .22Cyprus . ................ 83 .08 333 .25 Pakistan . ........... . 1,108 1.03 1,358 1.03Denmark .......... . . . 753 .70 1,003 .76 Panama . ......... . 2 0 252 .19Dominican Republic ....... . 22 .02 272 .21 Paraguay ..... .......... 16 .02 266 .20Ecuador . ................ 35 .03 285 .22 Peru . ........... . 194 .18 444 .34Egypt, Arab Republic of ..... . 590 .55 840 .64 Philippines .... . ......... 166 .16 416 .32El Salvador . ............. . 11 .01 261 .20 Portugal . .......... . 443 .41 693 .53Ethiopia . ................ 33 .03 283 .22 Saudi Arabia ... . .. 111 .10 361 .27Finland . ................ 421 .39 671 .51 Senegal . .......... . 184 .17 434 .33France . ................ 5,815 5.42 6,065 4.61 Sierra Leone . ........ . 83 .08 333 .25Gabon . ................ 55 .05 305 .23 Singapore . .......... . 177 .17 427 .32Germany . .............. . 3,655 3.41 3,905 2.97 Somalia . .......... . 83 .08 333 .25Ghana ... . ......... 166 .16 416 .32 South Africa ... .......... . 1,108 1.03 1,358 1.03Greece . ................ 277 .26 527 .40 Spain . ............ . 1,108 1.03 1,358 1.03Guatemala ... . ......... 22 .02 272 .21 Sri Lanka .... ........... 166 .16 416 .32Guyana . ................ 89 .08 339 .26 Sudan ..... . .. 111 .10 361 .27Haiti . ................ 22 .02 272 .21 Swaziland . ......... . 35 .03 285 .22Honduras . .............. . 11 .01 261 .20 Sweden . ........... . 1,108 1.03 1,358 1.03Iceland . ................ 11 .01 261 .20 Syrian Arab Republic ........ 72 .07 322 .25India . ........... 4,431 4.13 4,681 3.55 Tanzania . ......... 184 .17 434 .33Indonesia . ......... 1,218 1.14 1,468 1.12 Thailand . ......... 139 .13 389 .30Iran . ........... 372 .35 622 .47 Togo . ................. 83 .08 333 .25Iraq . .......... 67 .06 317 .24 Trinidad and Tobago . ..... 148 .14 398 .30Ireland ................ 332 .31 582 .44 Tunisia ................. 133 .12 383 .29Israel . .......... 50 .05 300 .23 Turkey . ................. 476 .44 726 .55Italy . ........... 1,994 1.86 2,244 1.70 Uganda . .......... 184 .17 434 .33Ivory Coast ........ 1....... 11 .10 361 .27 United Kingdom ........... 14,400 13.43 14,650 11.12Jamaica ................. 148 .14 398 .30 United States ............. 35,168 32.80 35,418 26.89Japan . ........... 2,769 2.58 3,019 2.29 Uruguay . ......... 155 .15 405 .31Jordan . .......... 33 .03 283 .22 Venezuela . ......... 116 .11 366 .28Kenya . .......... 184 .17 434 .33 Viet-Nam . ......... 166 .16 416 .32Korea ................. 139 .13 389 .30 Yemen Arab Republic ....... 47 .04 297 .23Kuwait . .......... 369 .34 619 .47 Yugoslavia . ......... 591 .55 841 .64Lebanon . ......... 50 .05 300 .23 Zaire . ........... 332 .31 582 .44Lesotho . ................ 18 .02 268 .20 Zambia . .......... 295 .28 545 .41Liberia . ................ 83 .08 333 .25 TOTALS $107,211 100.00 131,711 100.00Libyan Arab Republic ....... 55 .05 305 .23 *Less thor .005 percentLuxembourg ....... 1....... 11 .10 361 .27Malagasy Republic ........ 111 .10 361 .27General: S82.000 from Malta and $9,000 from Western Samoa have been received on account of their capital subscriptions pending admission to membership.

48

International Finance Corporation

Governors and Alternates Appendix BAs of June 30, 1973

Member Governor Alternate

Afghanistan ............ Mohammed Khan Jalalar ................. Abdul Samad KhalikiArgentina ............ Jose Ber Gelbard ................. Alfredo Gomez-MoralesAustralia ...... ...... F. D. Crean ....... .......... Sir John PhillipsAustria ..... ....... Hannes Androsch ............... .. Walter NeudorferBelgium ...... ...... W. De Clercq ...... ........... Robert VandeputteBolivia ............ Luis Bedregal Rodo ................. Jorge Salazar MostajoBrazil ............ Antonio Delfim Netto ................. Ernane GalveasBurma ..... ....... U Lwin ..... ............ U Chit MoungCanada ............ John N. Turner ................. Paul Gerin-LajoieChile ..... ....... Alfonso Inostroza Cuevas ................. Javier Urrutia SotoChina ..... ....... K. T. Li ..... ............ Chun-Heng fuColombia ............ Luis Fernando Echavarr'a ................. Jorge Mejia PalacioCosta Rica ............ Claudio Alpizar V ................. Claudio A. Volio G.Cyprus ............ Andreas C. Patsalides ................. A. C. AfxentiouDenmark ...... ...... Ivar N0rgaard ........ ......... Wilhelm UlrichsenDominican Republic ............ Di6genes H. Fernandez ................. Luis M. Guerrero G6mezEcuador ...... ...... Enrique Salas Castillo ................. Guillermo Maldonado LinceEgypt, Arab Republic of ........... Abdel Aziz Hegazy ............... .. Sherif LotfyEl Salvador ............ Alfredo Benjamin Noyola ................. Edgardo Suarez C.Ethiopia ...... ...... Mammo Tadesse ............ ..... Woldemariam GirmaFinland ..... ....... J6hannes Virolainen ................. Osmo KallialaFrance ..... ....... Minister of Finance ................. Andre de LattreGabon ..... ....... Augustin Boumah ............... .. Edouard-Alexis M'Bouy-BoutzitGermany ...... ...... Helmut Schmidt ............ ..... Erhard EpplerGhana ............ 1. K. Acheampong ................. J. EnninfulGreece ..... ....... Constantine Michalopoulos ............... . Christos G. AchisGuatemala ....... ..... Carlos Molina Mencos ................. Jorge Lamport RodilGuyana ..... ....... F. E. Hope . ................ Harold WilkinsonHaiti .... ........ Edouard Francisque ................. Antonio AndreHonduras ............ Manuel Acosta Bonilla ................. Abraham Bennaton RamosIceland ..... ....... Ludvik J6sepsson ............... .. HalId6r E. SigurdssonIndia ..... ....... Y. B. Chavan ........ ......... M. G. KaulIndonesia ...... ...... Rachmat Saleh .......... ....... Salamun A.T.Iran .... ........ Jamshid Amouzegar ................. Jahangir AmuzegarIraq ............ Amin Abdul Karim Kalamchi ............... Sa'adi IbrahimIreland ..... ....... Richie Ryan ........ ......... C. H. MurrayIsrael ............ Moshe Sanbar ................. Avraham AgmonItaly .... ........ Guido Carli . ................ Paolo BaffiIvory Coast ....... ..... Henri Konan Bedie ................. Abdoulaye KoneJamaica ...... ...... David H. Coore .......... ....... G. Arthur BrownJapan ............ Kiichi Aichi ................. Tadashi SasakiJordan ..... ....... Kamil Abu Jaberi) ............... .. Khahil Salim(')Kenya ..... ....... Mwai Kibaki ........ ......... Philip NdegwaKorea ..... ....... Duck Woo Nam .......... ....... Sung Whan KimKuwait ............ Abdul Rahman Salim Al-Ateeqy ............. Abdlatif Y. Al-HamadLebanon ...... ...... Khalil Salem ........ ......... Farid SolhLesotho ............ E. R. Sekhonyana ................ .T.ThahaneLiberia ..... ....... Stephen Tolbert ............ ..... D. Franklin NealLibyan Arab Republic ............ Mohammad Zarrough Ragab ............... Nuri A. BaryunLuxembourg ........ .... Pierre Werner ......... ........ Albert DondelingerMalagasy Republic ............ Raymond Randriamandranto ............... Celine Rabekoriana RabevazahaMalawi ..... ....... D. T. Matenje ......... ........ Lawrence Patrick AnthonyMalaysia ...... ...... Ismail bin Mohamed Ali ................. Chong Hon NyanMauritania ....... ..... Sidi Ould Cheikh Abdallahi ................ Mamadou CissokoMauritius ...... ...... Kher Jagatsingh ............ ..... Ramaswamy PyndiahMexico ..... ....... Jose L6pez Portillo ............... .. Guillermo Martinez Dominguez

(continued)

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International Finance Corporation

Governors and Alternates (continued) Appendix BAs of June 30, 1973

Member Governor Alternate

Morocco .... ...... Bensalem Guessous .............. .. Mustapha FarisNepal ... ....... J. B. Shah ...... ........... B. B. PradhanNetherlands .......... W. F. Duisenberg ................ A. SzaszNew Zealand . ......... N. V. Lough ....... ......... C. F. SprouleNicaragua .... ...... Guillermo Sevilla-Sacasa ................ Juan Jose Marti'nez L.Nigeria .... ...... Shehu Shagari ...... .......... A. A. AyidaNorway .... ...... Hallvard Eika ....... ......... Christian BrinchOman .......... Mahmoud M. Murad . ............... John S. TownsendPakistan .......... Mubashir Hasan ................ A. G. N. KaziPanama .... ...... Nicolas Ardito Barletta ................ Miguel A. SanchizParaguay .... ...... Cesar Romeo Acosta .............. .. Augusto Colmin V.Peru .......... Francisco Morales Bermudez C ......... .... Luis Barua CastafiedaPhilippines ..... ..... Cesar E. A. Virata ............ ..... Alejandro Melchor Jr.Portugal .. ........ Manuel Cotta Dias ........... ..... Daniel Maria Vieira BarbosaSaudi Arabia ..... ..... Ahmed Zaki Saad ......... ....... (vacant)Senegal .... ...... Ousmane Seck ........ ........ Djibril SakhoSierra Leone ..... ..... C. A. Kamara-Taylor ................. B. Strasser-KingSingapore .... ...... Hon Sui Sen ........ ......... Howe Yoon ChongSomalia .... ...... Mohamoud Yusuf Weirah ................ Omar Ahmed OmarSouth Africa ..... ..... T. W. de Jongh ....... ......... G. P. C. de KochSpain ... ....... Alberto Monreal Luque ................ Luis Coronel de PalmaSri Lanka .... ...... N. M. Perera ........ ......... C. A. CooreySudan ... ....... Ibrahim Moneim Mansour(1) ............... Mohamed Abdel Magid Ahmed(')Swaziland .... ...... E. A. Mayisela ....... ......... James NxumaloSweden .... ...... G. E. String ....... ......... Kjell-Olof FeldtSyrian Arab Republic .......... Nourallah Nourallah ................. Abdul Hadi NehlawiTanzania .......... W. K. Chagula ................ 1. M. KadumaThailand .... ...... Serm Vinicchayakul .............. .. Chalong PungtrakulTogo ... ....... Henri Dogo ....... .......... Boukari DjoboTrinidad and Tobago .......... G. M. Chambers ......... ....... F. B. RampersadTunisia .... ...... Mansour Moalla ......... ....... Moncef Bel Hadj AmorTurkey .... ...... Sadik Tekin Miftioglu ................. Ahmet Tufan GiilUganda .... ...... E. B. Wakhweya ........ ......... Jino GeriaUnited Kingdom ....... ... Gordon Richardson(') ................ Sir Douglas AllenUnited States ...... .... George P. Shultz ......... ....... John N. Irwin, 11Uruguay . ........ . Moises Cohen ....... ......... Ricardo ZerbinoVenezuela .... ...... Rafael Alfonzo Ravard ................. Carlos Emmanuelli LlamozasViet-Nam .... ...... Le-Quang-Uyen ........ ........ Nguyen Van DongYemen Arab Republic .......... Mohamed Al-Gunaid ................ Abdul Karim El-EryaniYugoslavia .... ...... Janko Smole ....... ......... Gavra PopovidZaire .......... Baruti wa Ndwali ................ Lombo lo Manga MangaZambia .... ...... John Mupanga Mwanakatwe ............... E. C. Chibwe

(I)Appo)ntment effective after June 30, 1973.

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International Finance Corporation

Directors and Alternates Appendix Cand Their Voting PowerJune 30, 1973

Director Alternate Casting votes of Total Votes

APPOINTEDVacant"'1........... Vacant"' ) ............... United States ....................................... 35,418Anthony K. Rawlinson ........... Vacant ........... .... United Kingdom .............. I ..................... 14,650Marc Vi6notO31 ......... ... Jean-Claude H. Faure ............ France .......................................... 6,065Fritz Stedtfeldt01........... Wolfgang H. Artopoeus ........... Germany .......................................... 3,905Taro Hori ........... Masanari Sumi ............... Japan .......................................... 3,019

ELECTEDClaude M. Isbister ........... D. R. Clarke ............... Canada, Guyana, Ireland, Jamaica ......... ................ 5,169

(Canada) (Jamaica)S. R. Sen ..... ...... A. M. A. Muhith ............... India, Sri Lanka ...................................... 5,097

(India) (Bangladesh)Bulcha Demeksa .... ... Ismael El Misbah Mekki .......... Ethiopia, Kenya, Lesotho, Liberia, Malawi, Nigeria,

(Ethiopia) (Sudan) Sierra Leone, Sudan, Swaziland, Tanzania, Trinidad andTobago, Uganda, Zambia .5,060

S. A. McLeod. .......... M. A. Cranswickl's ............. Australia, New Zealand, South Africa ........ ................ 4,996(New Zealand) (Australia)

M. M. Ahmad .. ... Mohamed Abdul Rahman ......... Egypt (Arab Republic of), Iraq, Jordan, Kuwait, Lebanon,(Pakistan) Alsharekh (Kuwait) Oman, Pakistan, Saudi Arabia, Syrian Arab Republic, Yemen

Arab Republic .4,983Alfred Rinnooy Kan ........... Branko Mijovic ...... ... Cyprus, Israel, Netherlands, Yugoslavia ........ .............. 4,770

(Netherlands) (Yugoslavia)Andre van Campenhout ........... Vural Guicsavas ...... ... Austria, Belgium, Luxembourg, Turkey ........ .............. 4,633

(Belgium) (Turkey)Choi Siew Hong ... .... Byong Hyun Shin ...... .. Burma, Indonesia, Korea, Malaysia, Nepal, Singapore,

(Malaysia) (Korea) Thailand, Viet-Nam .4,337Giorgio Rota ............ .. Juan Moro ..... ..... Italy, Portugal, Spain ................. ................. 4,295

(Italy) (Spain)Hans E. Kastoft .............. Annikki Saarela .......... Denmark, Finland, Iceland, Norway, Sweden .................. 4,097

(Denmark) (Finland)Luis Ugueto .... Carlos Santistevan ......... Costa Rica, El Salvador, Guatemala, Haiti, Honduras,

(Venezuela) (Peru) Mexico, Nicaragua, Panama, Peru, Venezuela .... ..... 3,629Jorge L. Tersoglio .............. Luis Barrios Tassano .......... Argentina, Bolivia, Chile, Paraguay, Uruguay ...... ............ 3,549

(Argentina) (Uruguay)Mohamed Nassim Kochman ...... . Vacant. . . Gabon, Ivory Coast, Malagasy Republic, Mauritania,

(Mauritania) Mauritius, Senegal, Somalia, Togo, Zaire .3,359Yahia Khelit. . ... Kwaku Gyasi-Twum ......... Afghanistan, Ghana, Greece, Iran, Libyan Arab Republic,

(Algeria) (Ghana) Morocco, Tunisia .3,252Virgilio Barco ........... Placido L. Mapa, Jr .............. Brazil, Colombia, Dominican Republic, Ecuador, Philippines ...... . 3,024

(Colombia) (Philippines)

In addition to the Directors and Alternates shown in the foregoing list, the following also served after October 31, 1972:Oirector End of period of service: Alternate Director End of period of service:

Derek J. Mitchell.. .......... December 12, 1973. ......... Didier B. Pfeiffer. . ....... December 21, 1972(United Kingdom) (France)

R. Lindsay Knight.. .......... February 9, 1973.. ......... Carl 1. Ohman. . ...... February 28, 1973(New Zealand) (Sweden)

Robert E. Wieczorowski ......... . .March 9, 1973 . ....... . .K .M .Critchley . ..... . .May 15, 1973(United States) (United Kingdom)

Seitaro Hattori.. .......... June 18, 1973.. ........ Benoit Boukar.. ...... June 15, 1973(Japan) (Chad)

Note: China (4,404 votes) is not represented by a Director..) To be filled by Charles 0. Sethness, effective July 24, 1973.(2) To be filled by Hal F. Reynolds, effective July 24, 1973.(3) To be succeeded by Jacques Wahl on July 1, 1973.(4) To be succeeded by Hans Janssen on August 23, 1973.(5) To be succeeded by Edmund M. W. Visbord (Australia) on August 1, 1973.

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International Finance Corporaton

Officers and Department Directors Appendix D

President ........................................... *Robert S. McNamaraExecutive Vice President ................................ ........... William S. GaudVice President ........................................... Ladislaus von HoffmannGeneral Counsel ........................................... R. B. J. RichardsDirector, Finance and Management Department ................................. David B. DillardSecretary ........................................... *P. N. Damry

Director, Programming and Budgeting Department ............ ................... *John H. AdlerDirector, European Office ....................... .................... *Jean CarriereDirector of Personnel . ........................................... *R. A. ClarkeOffice of Portfolio Supervision ........................................... Douglas J. A. DuPreDirector, Capital Markets Department ....................... ................ David GillDirector of Investments, Africa and Middle East ................ .................. Cherif HassanDirector, Engineering Department ........................................... H. Geoffrey HiltonSpecial Representative in Indonesia ......................................... Ronald K. JonesDirector of Marketing ........................................... Ajit HutheesingSpecial Representative in Europe ........................................... Rolf Th. LundbergBusiness Relations ........................................... Norman MacdonaldDirector, Office of Investment Promotion .................................... . Sergio MarkmannSpecial Representative in the Far East ...................................... . Naokado NishiharaDirector of Investments, Asia ......................................... . .Judhvir ParmarDirector of Investments, Central America, Australasia, Mexico and Europe ........ . . . . . . Neil J. PatersonEconomic Adviser .......................................... .Mo een A. QureshiDirector of Investments, South America ..................................... . Rafael TalaveraDirector of Administrative Services ..................................... . . . .*James E. Twining

*These officers and department heads hold the same positions in the International Bank for Reconstruction and Development.

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INTERNATIONAL FINANCE CORPORATION

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