Announcement of IFC Support for Leasing Operation Expansion in Tunisia June 23, 1986

uoal Finance Corporation043US io, LULLIILCWI..LI4~~~ a 4 n DC 20433, USA Monday, June 23, 1986 Monique Amaudry Press Release No. 86/45 CONTACT: (202) 676-9331 IFC SUPPORTS LEASING OPERATION EXPANSION IN TUNISIA The International Finance Corporation is providing a loan of 3 million ECU, equivalent to $2.9 million, to finance the $18.6 million expansion of a leasing operation in Tunisia. The Company, Tunisie Leasing S.A., provides medium-term lease financing to private sector enterprises. IFC is the private sector arm of the World Bank and the leading multilateral institution specializing in project financing through long-term loans and equity investments, without government guarantee, to private enterprises in developing countries. IFC's loan to Tunisie Leasing S.A., will supplement local funding of 12 million Dinars, $15.7 million equivalent, which the Company has negotiated with local commercial and development banks. A consortium of six local commercial banks led by a shareholder, Union Internationale de Banques, will provide 8.0 million Dinars ($10.5 million equivalent). Two development banks, shareholders in the Company, Banque Tuniso-Koweitienne de D6veloppement and Societ6 Tuniso-S6oudienne d'Investissement et de D6veloppement will provide loans totalling 4 million Dinars. IFC's participation will help strengthen the Company's image in the domestic and foreign markets. The financial package will enable Tunisie Leasing to increase its volume of operations, particularly for export-oriented firms, while providing the Company greater financing flexibility for imported equipment. - MORE - -2- IFC made a 10 percent equity investment in the Company in 1984. The Company became fully operational in 1985 and has approved leasing transactions totalling US$10.4 million in its first twelve months of operations. IFC has made seven previous investments in Tunisia, amounting to $7.6 million, in development finance, tourism, chemicals and petrochemicals, mining, and capital markets. - END -