Announcement of IFC Financing Tata Iron and Steel, Modernization, Expansion Program June 19, 1986

I0nternational Finance Corporation Thursday, June 19, 1986 Donald Roessner FOR RELEASE Press Release No. 86/44 CONTACT (202) 676-0394 IFC HELPS FINANCE TATA IRON AND STEEL MODERNIZATION, EXPANSION PROGRAM The International Finance Corporation (IFC) is lending $10 million to The Tata Iron and Steel Company Limited (Tisco), India's only large-scale, integrated, private sector steel company. The loan will help finance a $79.9 million sinter plant that is a key component of the company's 1985-90, Phase II modernization and expansion program. IFC, which is the leading multilateral institution that assists the economic growth of developing countries by investing in their private enterprise sectors, also helped to finance Tisco's $250 million, Phase I modernization program that was successfully completed in 1983. In addition to IFC's loan, the State Bank of India will be making a $4.8 million foreign exchange loan. Approximately $65.1 million in internal cash generation and Steel Development Fund loans complete the financial plan. The new, 1.62 million metric tons-a-year sinter plant will process currently unutilized iron ore fines and thereby slow the depletion of recoverable reserves and increase the life of Tisco's iron ore mine. Technology for the sintering process will be supplied by Lurgi Chemie und Huettentechnik GmbH of the Federal Republic of Germany -- a leader in the design and construction of sinter plants. - 0 -