Announcement of Financing of Second Gwalior Cement Project October 16, 1985

International Finance Corporation FOR RELEASE: Wednesday, October 16, 1985 CONTACT: Donald Roessner Press Release No. 86/9 (202) 676-0394 IFC HELPS TO FINANCE SECOND GWALIOR CEMENT PROJECT The Gwalior Rayon Silk Manufacturing (Weaving) Company, Limited will double the capacity of its cement plant at Khor, Madhya Pradesh, in western India, to 1 million metric tons a year with financial assistance from the International Finance Corporation (IFC) and two participating financial institutions: Citibank, N.A. and Grindlay Brandts Limited. IFC is an affiliate of the World Bank and the world's leading multilateral agency that finances private sector business in developing countries. The Corporation is lending Gwalior $9.96 million equivalent in Deutsche mark -- $5.87 million equivalent for its own account and $4.09 million equivalent for the account of the two participants. Additional financing for the $49.69 million project consists of an approximately $8.16 million commercial bank loan, $16.34 million in other term borrowings, $9.66 million in short-term borrowings and $4.36 million in cash generation. The original project, which IFC helped to finance in 1983 with a loan of DM11 million, started producing cement in June, 1985. The expansion is expected to be completed within the next 12 months. Approximately 400 new jobs will be created by the expansion in addition to the 500 jobs created by the original project. The new venture also will benefit the economy by generating estimated net foreign exchange benefits of some $13.3 million annually and by helping to meet the growing demand for cement in India.