Announcement of IFC Supports Honduran Industry Ten Million US Dollars for Textile Expansion on January 11, 1978

International Finance Corporation 1818 H Street, N.W. • Wa~hington, D.C. 20433, U.S.A. 202-477-1234 IFC Press Release No. 78/14 Wednesday, January 11, 1978 IFC Supports Honduran Industry $10 Million for Textile Expansion The International Finance Corporation (IFC), an affiliate of the World Bank, is investing $1 million in equity, and together with Bank of America is providing $9 million in loan to Textiles Rio Lindo S.A. de C.V., a Honduran textile company. The combined $10 million investment is to help Rio Lindo finance a $15 Iqillion expansion and diversification project. Bank of America N.T. & S.A. is taking a $6 million participation in IFC's loan. The balance of the project financing consists of $1 million in equity provided by CONADI, the Honduran Government owned development financial • institution, and $4 million in internal cash generation by the Company . Textiles Rio Lindo produces cotton fabrics at its integrated textile mill located on the outskirts of Tegucigalpa. The expansion, scheduled to be completed in mid 1979, will enable the Company to produce wide synthetic/cotton blended fabrics and will increase its annual productive capacity by 5 million yards. With increased output and greater flexibility, Textiles Rio Lindo will be able to help meet growing textile demand in Honduras and reduce imports, thus generating estimated foreign exchange savings of $4 million annually. The expan- sion will also create approximately 400 additional jobs. The Company is predominantly Honduran-owned, with the Facusse group hold- ing a majority of the shares. The other stockholders are a private international development institution, Adela Investment Company, and approximately 80 Honduran individuals. • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5340.)