Announcement of IFC Help in Modernization and Expansion of Aluminum Complex in Yugoslavia July 7, 1986

Monday, July 7, 1986 Monique Amaudry Press Release No. 87/2 (202) 676-9331 IFC HELPS MODERNIZATION AND EXPANSION OF ALUMINUM COMPLEX IN YUGOSLAVIA The International Finance Corporation is helping finance a $116 million project to modernize and expand the operations of UNIAL - Tovarna Glinice in Aluminija Boris Kidric (TGA), an aluminum complex in Slovenia that has been in operation since 1954. "The investment will help the Yugoslave economy by enhancing domestic supplies, thus saving foreign exchange," said Sir William Ryrie, IFC Chief Executive. "It will also reduce production costs," he added. The project, to be completed by December 1988, will increase TGA's smelting capacity to 70,000 metric tons per year (mty) from 45,000 mty and will include the upgrading of casting, quality control and auxiliary facilities. Pechiney of France will provide technology and assistance to the plant. TGA and about 130 downstream aluminum fabricators throughout Yugoslavia will provide equity financing for the project amounting to $45.1 million equivalent. Local loans equivalent to $26.3 million will be provided by a consortium of 13 banks led by Ljubljanska Banka. IFC will provide loan financing equivalent to $32.4 million for the project. TGA will use an existing line of credit of FF85 million from Banque Paribas (France) for the balance of the foreign currency requirement. "The IFC loan represents one of the most important events in the history and development of our aluminum industry," said Mr. Ivan Gerjovic, Director of UNIAL. - MORE - - 2 - 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 holds 17 investments in Yugoslavia amounting to about $270 million in pulp and paper products, motor vehicles and accessories, food and food processing, oil and gas, development finance, tourism, telecommunications, machinery, power transmission, and a physical medicine center. - END -