Announcement of First IFC Investment in Cameroon Four Million Fifty-One Thousand US Dollars to Increase Shoe Production

International Finance Corporation 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-393-6360 IFC Press Release No. 75/14 Wednesday, June 25, 1975 First IFC Investment in Cameroon $451 2 000 to Increase Shoe Production The International Finance Corporation (IFC), an affiliate of the World Bank, is making its first investment in Cameroon with a $451,000 equity and underwriting commitment that will help expand shoe production at Bata S.A. Camerounaise and assist the parent Bata Shoe Organization in broadening its subsidiary's ownership to include Cameroon investors. Bata Ca.merounaise is carrying out a $6.7 million expansion program started in 1972 that will increase production from about five million pairs of shoes in 1972 to seven million pairs in 1978. The project consists of adding new machinery and equipment, improving productivity, modernizing the Company's retail outlets, pro- • viding land for employee housing, and providing working capital. Financing for the project consists of $5.2 million in cash generation, an $833,000 local bank loan, a $152,000 share subscription by IFC, a $125,000 share subscription by Societe Nationale d'Investissements du Cameroun, the leading Go- vernment-owned financial institution, and a $374,000 public share offering under- written by IFC, Societe Nationale d'Investissements and Societe Ca.merounaise de Banque, the nation's largest commerci~l bank. The offering is the first of its kind in Cameroon. In addition to the new share offering, local ownership will be further broadened by a Bata Shoe Organization holding company selling approximately $623,000 in exis.ting shares to Societe Nationale d 'Investissements and offering approximately $374,ooo in existing shares to the public. On completion of the financial transactions, and when IFC eventually sells its owh shares, about one- third of Bata Camerounaise's equity will be held by local institutions and private investors. IFC previously made two investments in Bata projects -- to increase capa- • city and later to add tanning facilities for Zambia Bata Shoe Company, Ltd . (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-2355). ·