Announcement of IFC Assistance to Expand Agribusiness Production in Morocco November 18, 1985

Monday, November 18, 1985 Monique Amaudry Press Release No. 86/14 (202)676-9331 IFC HELPS EXPAND AGRIBUSINESS PRODUCTION IN MOROCCO The International Finance Corporation is making a Deutsche Mark 15.2 million loan to Fruitiere Marocaine de Transformation (FRUMAT), a Moroccan company specialized in the production of citrus juices, concentrates and other sub-products, to help finance the modernization, rehabilitation and expansion of three of FRUMAT's four plants. IFC, which is affiliated with the World Bank, is the leading international agency specializing in project financing in developing countries, providing private enterprises with equity participation, long-term financing without government guarantee, and technical assistance. Located in the Casablanca area, the $17.2 million project will enable FRUMAT to increase its processing capacity by about 80,000 tons of citrus p.a. to about 230,000 tons of citrus p.a., approximately 20 percent of Morocco's total production of 1.3 million tpa, by 1986. The project will save on energy, storage and transport costs by providing the Company with more efficient production equipment, expanded cold stores and the facilities needed to transport citrus juice to market in bulk rather than in bottles or drums. The production will be sold essentially to France and Germany. In addition to the IFC loan, financing for the project is being provided by Banque Nationale pour le Developpement Economique, the Moroccan development bank, through a loan of 44 million Dirhams, and by various other local banks led by Credit du Maroc through a syndicated loan of 11 million Dirhams. Cash generation will complete the financing. -2- The project will make a positive contribution to Morocco's economy by enabling FRUMAT to improve its competitiveness in the international market and to take advantage of favorable citrus product prices worldwide. Fresh citrus and citrus-related products are Morocco's third largest source of foreign exchange and the project will generate additional foreign exchange revenues estimated at USS4 million annually for the country. IFC helped FRUMAT formulate a cohesive program of expansion, modernization and rehabilitation of its three main plants and, in cooperation with BNDE, assisted the Company in establishing a viable financing plan. The project is IFC's tenth investment in Morocco. IFC's current investments in Morocco amount to $52.5 million in mining, cement and construction material, food and food processing, and development finance projects.