Announcement of Finance for New Private Development Corporation in the Philippines on July 16, 1963

International Bank for Reconstruction and Development International Finance Corporation 0 1818 H STREET, N. W., WASH I t•:GTON 2!5, 0. C. TELEPHONE, EXECUTIVE 3,6360 ~ (~, : tfmFC ~; l!!1J -- . . - Z 9 F.OR ·IMMEDIATE RELEASE 0 ;,i,..., ~ ,? ~ • ~ ft { li'JNA~c, Bank Press Release No. 63/2.A Subject: Finance for new Private IFC Press Release No. 63/10 Development Corporation July 16, 1963 in the Philippines The Priva.te Development Corporstion of th~ Philippines annoUL.ced toaa.y that it had successf'ully sold its first public offering of capital stock, consisting of 2,500,000 shar~s with a total par value of 25 million pesos. Seventy per eent of the sh~:'~es were offered to Philippine subscribers and to the International Finance Corporation, an affiliate of the World Bank. The remaining 30'/o were subscribed principally by 18 leading private institutions outside the Philippines. • 'I'his is the largest group of international investors with 'Which the been associated, anrl one of the largest ever to participate in the capitalization of a dev-elopmcnt corporation. ~ has ever These overseas participants include 14 ~rican investm~t ann bank1ng insti- tutions, two British banks, a German bank ann. a Japanese bank, as follows: The American Express Company, Inc. Bank of America. The Bank of Tokyo, Ltd. Bankers International Financing Company Inc. Boston Overseas Financial Corporation The Cl:. crtere(l Bank Chemic~ International.'Finance Ltd. ContiDP...nta.1 International Financ~ Corporation Deutsche Bank A.G. First National City Overseas Investment Corporation The Hongkong and Shanghai Ba,nkjng Corporation Irving International Financing Corporation Lehman Brothers Ma.nuf'acturers Han:-:>ver International. Fina.nee Corporation Morgan flua.ran.ty Interna.tionaJ. Finance Corporation New York Hanseatic Corporation Philaiielphia International Investment Corporation Wells Fargo Bank International Corporation Mtt • - 2 - Mr. Francisco Ortigas, Jr., Chairman of the Private Development Corporation of the Philippines, speaking for himself and the other directors of the Corpora- tion, expressed gratification with the success of the issue. "The Directors of PDCP, '' he said, "are especially grateful for the widespread support given to our new enterprise by subscribers abroad. This extensive participation in our stock issue is an encouraging demonstration of eonfidence in the future of the Philip- pine economy and in the opportunities for private investors in our country." Privately owned and managed, the new Corporation is designed to serve as a leading instrument in promoting and financing the growt{1 of private industry in the Philippines. It will make medium and long-term loans, provide under- writing facilities and invest in the equity of private industrial enterprises, while its diverse overseas connections will enable it to attract foreign invest- ~ ment into the Philippine economy. PDCP was established with the assistance of IFC and. the World Bank, which helped in exploring the feasibility of establishing it and assisted members of the Philippine business community to organize it. PDCP now has total resources of 111 million pesos, including a loan of US$15 million from the World Bank, a loan of 27.5 million pesos from the United States Agency for International Develop- ment, investments by the founding shareholders and the proceeds of the present stock issue. Operations will begin soon after the election of the Board of Directors at the first Annual Meeting of the shareholders, which is to be held in the near future. The public stock issue of the PDCP consisted of 1,750,000 Class A shares {for offering to Philippine citizens, to corporations with at least 60% of their • shares held by Philippine citizans, and to IFC)and 750,000 Class B shares avail- able for subscription without restriction. ~t the par value of 10 pesos each. Both classes of shares were offered  " . • - 3 - The International Finance Corporation had undertaken to subs,cribe as many as 500,000 Class A shares of the new POOP issue, with a commitment to take 80,000 shares initially and to stand by to take up tc 420.,000 shares more, de- pending on the response of Philippine investors to the offering. In view of the success of the offering, IFC wtll not be called upon to take up any shares under its standby commitment; thus IFC's total. in-.,estment is 8o,ooo shares with a par value of 800,000 pesos (equivalent to US$205,000). With this operation the IFC ancl the World :Bank have joined in f.inancing four development financing institutions, under arrangements whereby the Bank provides loan capital and IFC providt;s equity. The other institutiom; being assisted by the Bank and Corporation in thin way are the Banque Nationale pour le DeveJ oppement Economique, of Moroc1~0, the Pakistan Industrial Credit and • Investment Corporation and the Malayarl Industrial Development Finance Limited . •