Announcement of Additional Financing Provided For Lebanese Textile Project on February 13, 1978

• Inter/1ational Finance CorpoYation IFC Press Release No. 78/18 Monday, February 13, 1978 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-393-6360 Additional Financing Provided For Lebanese Textile Project The International Finance Corporation (IFC), with participation by Banque du Credit Populaire S.A.L., Beirut, Union de Banques Arabes et Francaises, Paris, and Arab African Bank, Cairo, is making a $1.8 million supplemental loan to Lebanon Textiles S.A.L. (LIBTEX), which despite past disturbances in Lebanon was able to complete plant construction and is now starting initial operations. Lebanese shareholders also are providing $1.5 million in the form of a shareholder loan. The additional funds will be used by LIBTEX to overcome a delay in • start-up of operations due to the disturbances, finance increased spinning capacity and expand product lines. The supplementary loan is in addition to a $3.9 million loan made to LIBTEX in 1974 .by IFC, Arab African Bank, and Union de· Banques Arabes et Francaises following LIBTEX's formation by Lebanese shareholders in 1973. At that time the plan was to construct a 3,000 metr~c tons per annum spinning mill at Amchit to produce high quality cotton yarn. Disturbances broke out during the initial construction of the plant, & but LIBTEX was able to continue construction, collect and transport equip- ment to the site and train the staff. With this supplemental financing, the plant's spinning capacity will be increased to 3,600 metric tons per annum and allows LIBTEX to purchase the additional equipment needed to produce a wider variety of yarn for the domestic knitting and weaving industry • • (Any inquiries strictly relating to IFC' s participation i.n this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5340.)