Announcement of World Bank Lends Fifteen Million Dollars for Industrial Development in Philippines on May 1, 1978

· FOR l~Mf=:DJATE RELEASE . ' . ~ • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/77 MA'( 1 , 1978 WORLD BANK LENDS $15 MILLlON FOR lNDUSTRlAL DEVELOPMENT lN PHlLlPPlNES lndustrial development in the Philippines will be assisted with the support of a $15 million loan, the World Bank announced today. The World Bank loan goes to the Philippine National Bank for relending to the Philippine Investments Systems Organization (PISO}. The loan is guaranteed by the Philippine Government. PlSO is a privately owned investment house established in 1974. Its 1~rg~st shareholders include the Private Investment Company for Asia S.A. (PICA), a multinationai corporation based in Singapore, and the Ince Mining Corporation, a locally owned organization. PlS0 1 s authorized share capital • is Peso 100 million (about $13.5 miliion) and its subscribed/paid-in share capital as of April 3, 1978, amounted to Peso 31 .6 million (about $4.3 million). PlS0 1 s activities to date have been confined mainly to short-term financing operations and syndications. The Bank loan will enable PISO to undertake medium- and long-term ler,ding. It wi 11 be used for making sub loans to finance foreign· exchange requirements of economically and financially viable projects in the private sector, mainly in manufacturing. The Bank's support of the PISO project is in line with the Philippine Government's objective of increasing the rate of industrial growth, and diversifying and improving the capacity of financial institutions to mobilize and allocate term financing needed for industrial investment. The World Bank loan, which will bear an interest rate of 7.5% per annum, will be repayable according to a schedule reflecting the composite amortization schedules of PISO subloans. • NOTE: Money figures are expressed in U.S. dollar equivalents .