Announcement of IFC Syndicates Loan for Philippine Development on December 19, 1972

• F·OR IM.MEDIATE RE-LEA$E • ' I IFC Press Release No. 72/16 December 19, 1972 I FC SYi'JD I CATES LOAN FOR PH IL I PP I NE DEVELOPMENT The International Finance Corporation (IFC), a member of the World Bank Group, has i;,tr(:duced a new form of support for loca1 deveJopment finance companie!:i in the cE:,,·e loping countries. Since it was established in 1956 IFC has invested in 23 of these finance companies in 19 countries. lJow, 'for the first time, IFC has helped one of these companies the Private Development Corporation of thi Philippines (PDCP) -- to raise resources abroad by organizing a long-term loan on its behalf. The loan is for $15 mill ion, of which IFC is providing $6.5 million, while • $8.S mi 11 ion has been placed with four banks: Manufacturers Hanover Trust, the Bank of Tokyo, Chemical Bank, a~d the Union Bank of Switzerland. PDCP provides both loan and equity financin~ to private enterprises in the Philippines. It was established in 1963 with the support of a $15 million loan from the World Bank. Equity ca~ital was raised by a local public offering, to which IFC subscribed. Today shares in POCP are held locally and by 18 European, Japanese and U.S. banks and financial institutions. The proceeds of the new loan will be used by PDCP to provide long-term financing for the foreign exchange element in its investments which, on the basis of its past operations, are expected to be concentrated in manufacturi~g, trans- portation and power, with a priority to export-oriented enterprises. The loan is expected to provide about half the Corporation's foreign exchange commitments • in 1973 and 1974 • IFC's gross commitments in the Philippines now total $54.3 million lent to or invested in eight enterprises. - 0 -