Announcement of IFC Philippine Investment Supports Coconut Oil Project on June 8, 1976

•• International FinClnce Corporation 18!8 H Street. NW Washington. O.C 20433. U.SA 202-393-6360 IFC Press Release No. 76/9 Tuesday, June 8, 1976 IFC Philippine Investment Supports Coconut Oil Project The International Finance Corporation (IFC), an affiliate of the World Bank, is joining Philippine, Indian and British investors to finance a $6.6 million coconut oil mill project near Za.mboanga City, Mindanao. The IFC investment of $2,650,000 in loan and $187,000 in equity is being made in Philagro Edible Oils, Inc. Am.on Trading Company, a well established Philippine trading company, is investing $480,000 in equity in the project; Tungabhadra Industries, Ltd., and Indian Tool Manufacturers Ltd., two Indian companies associated with the Birla Group, are investing an aggregate • $480,000; and the Comcraft Group, a London based investment and management company, is investing $467,000. The remaining $653,000 in equity will be provided by Philippine planters, private investors and through a public offering. The $1,656,000 balance of the project funds is expected to be raised through export credits. Philagro will build a mill to process 200 metric tons of copra a day, or 60,000 tons a year, and produce at full capacity about 38,000 tons of crude coconut oil and 18,300 tons of pelletized copra cake per yearo The mill has been designed so that capacity can be increased to 350 tons a day with a relatively small additional investment. The project conforms with the Philippine Government's policy of developing a domestic oil industry in order to increase the value added to exports and to expand the domestic supply of copra cake for use as feed in the country's emerging cattle industry. Philagro Edible Oils is also expected to benefit a large farm population in the Zamboanga area by simplifying the copra trade and thereby reducing trading expenses. The farm population will also benefit from the • increased extension services to be provided. (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H Street, N.W. Washington, D.C. 20433, Telephone (202) 477-2355).