Announcement of IFC Underwriting to help Finance Enka de Colombia Expansion April 29, 1986

nternational Finance Corporation FOR RELEASE: CONTACT: Tuesday, April 29, 1986 Donald Roessner Press Release No. 86/34 (202) 676-0394 IFC, UNDERWRITING HELP FINANCE ENKA DE COLOMBIA EXPANSION The InLernational Finance Corporation (IFC) is making a new investment in Enka de Colombia S.A. to further expand the company which it helped to establish almost 20 years ago. The investment is also expected to improve the company's access to international financial markets. IFC - the leading multilateral institution that assists the economic growth of developing countries by investing in their private enterprise sectors -- is lending $6 million for the $13.3 million project which will increase the company's output of nylon tire fabric and indusLrial yarns and shift part of its textile output to higher value yarns. The project will help meet the needs of domestic tire producers, who are operating a full capacity, and reduce the need for tire fabric imports. Loans totaling $1.8 million from local sources and internal cash generation complete the financial plan. The British merchant bank, Kleinwort, Benson Limited, has been invited to underwrite a private placement of $3 million of IFC's loan. This is a further step by IFC in helping to prepare the ground for Enka de Colombia to eventually make a public offering in the European market. Enka de Colombia is the leading manufacturer of synthetic fibers in the country. The company is majority owned by Colombian investors, and AKZO N.V. of the Netherlands is technical partner and a minority shareholder. 0- -2- The project will enable the company to significantly reduce unit costs and is expected to more than double its net income. IFC played a key role in completing the financial plan, permitting timely project implementation and encouraging private sector investment. -0-