Announcement of Twenty-Five Million US Dollars Loan in Israel Approved on June 16, 1961

\\ HOLC{ FOR RELEASE WORLD a A. N K • 1818 H STREET, N.W., WASHINGTON 25, D. C. TELEPHONE: EXECUTIVE 3-6360 C Press Rel~ase No. 694 SUBJECT: $25 million .loan in For Rc.lco..ae AM Newspapers . Israel a.p~ved . Friday, Jun'!! 16., 1961 c_; The Executive Directors of the World Bank have authorized a loan equiva- • () ;i lent to $25 million to Mifal.ei Yam Hamelah B.M. (Dead Sea Works Limitec}) at ,. Beershel>a in Israel. The proposed loan will assist in financing .a large ex- pansion of the company's facilities for produc~ng_potash and bromine from Dead .• Sea brine and the construction of new facil_itie~ for the production of bromine chemicals and magnesite. • The total cost of the expansion program is estimated at the equivalent of $72 million. In addition to the Bank loan, the company will obtain funds from the proceeds of a new sha.t"e issue of 27 million Israeli pounds ($15 mil- lion), from retained ea-rnings and from other borrowings. The shares will be registered on the Tel Aviv stock exchange,, and this offering will be under- written\, by a syndicate of Israeli banks headed by the Bank Leumi Le-Israel. The Loan .Agreement between the Bank and the Dead Sea Works Limited will be signed after the share issue has been taken up, which is expected early in July. The 'loan will be guaranteed by the Government of Israel • •