Announcement of Three Million Five Hundred Thousand US Dollars IFC Loan to Plywood Firm Sarmiento Industries, Inc., Expands on November 2, 1977

International Finance Corporation • 1818 H Street. N.W. Washington, D.C. 20433, U.S.A. 202-393-6360 " .t· 'l. ' ,v ' IFC Press Release No. 78/9 Wednesday, November 2, 1977 $3.5 Million IFC Loan to Plywood Firm Sarmiento Industries, Inc., Expands The International Finance Corporation (IFC) is lending $3.5 million to Sarmiento Industries, Inc., a large Philippine plywood producer and exporter, for an $8.2 million project to almost double the Company's logging operations and to improve and modernize some of its manufacturing equipment. The Private Development Corporation of the Philippines is lending $1.5 million. The Private Investment Systems Organization of the Philip- pines is providing $1 million through the Cooperative Financing Facility of the Export-Import Bank of the United States. Cash generation and sale • of certain assets amounting to $2.2 million complete the financing. gether with its loan, IFC will receive an option to purchase 5 per cent of Sarmiento's common stock. Logging capacity will be increased by rehabilitating older equipment, To- obtaining new equipment and expanding road-building capacity. This will permit Sarmiento Industries to increase log harvesting to 300,000 cubic meters a year from the present 160,000 cubic meters. The added capacity will make the Company self-sufficient in logs and end its reliance on more expensive external purchases. Some older equipment in the Company's two plywood plants will be replaced while the power supply system will be modified for greater reliability and lower operating costs. IFC has assisted Sarmiento Industries in defining the size and scope of the project, which is expected to increase the Company's efficiency and improve its competitive position in the wood products export market. IFC is the affiliate of the World Bank which assists economic develop- ment by promoting growth of the private sector • • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-6247.)