Announcement of IFC Help to Finance Chlorine, Caustic Soda Plant in Colombia February 18, 1987

utional Finance Corporation Wednesday, February 18, 1987 CONTACT Bruce McWilliams Press Release 87/43 (202) 676-1950 IFC HELPS TO FINANCE CHLORINE, CAUSTIC SODA PLANT IN COLOMBIA The International Finance Corporation (IFC) is helping to finance a new, $29.4 million chlorine and caustic soda plant in Colombia that will help lower costs and reduce the country's reliance on imports of these products. IFC -- the leading multilateral institution that assists the economic growth of developing countries by investing in their private enterprise sectors -- is investing $1.18 million in equity and lending $6 million to Productos Derivados de la Sal, S.A. (Prodesal) which will build and operate a plant with a capacity to produce 12,000 metric tons of caustic soda and 10,800 tons of chlorine a year. The principal sponsors of the enterprise are Carton de Colombia S.A. and Productora de Papeles S.A., which are investing $3.54 million each in equity. Corporacion Financiera del Valle S.A. is providing $2.09 million in equity; Instituto de Fomento Industrial I.F.I. and Papelera Colombiana S.A., together, $1.36 million; and Fundacion para el Desarrollo Integral del Valle del Cauca, $50,000. A loan totalling $7.8 million from the World Bank with the intermediation of the Central Bank of Colombia and local development finance companies, a loan of $2 million from the Central Bank through the Fondo de Inversiones Privadas and local financial companies and $1.84 million in local loans complete the financial plan. - MORE - - 2 - Prodesal's plant will be built in the Valle del Cauca region of Colombia, close to its major customers. It is designed so that capacity can be doubled with a relatively small additional investment. The project is introducing a non-polluting process to Colombia an it will utilize electrolysis of salt in brine form using membrane cell technology. The technology is being provided by Imperial Chemical Industries of the United Kingdom and Chemetics, a subsidiary of Canadian Industries Ltd. The venture will also benefit Colombia by generating net foreign exchange benefits of $4.5 million a year. - END -