Announcement of IFC Help to Modernize Senegalese Textile Print Production October 8, 1986

IP@ Inetrnational Finance Corporation FOR RELEASE. Wednesday, October 8, 1986 Monique Amaudry Press Release No. 87/21 CONTACT (202) 676-9331 IFC HELPS TO MODERNIZE SENEGALESE TEXTILE PRINT PRODUCTION The International Finance Corporation is providing a 18 million French francs loan ($2.25 million equivalent) to Societ6 de Teinture, Blanchiment, Appr6ts et d'Impressions Africaine (SOTIBA-SIMPAFRIC) to help a $7.55 million modernization program of the only producer of textile prints in Senegal. IFC is affiliated with the World Bank and the leading private sector multilateral institution providing loans and equity financing to private enterprises in developing countries. The project, which will be completed at the end of 1988, is part of a revitalization effort to modernize the plant and enable SOTIBA-SIMPAFRIC to strengthen its existing position in the local and regional market by improving the quality of the printed cloth and reducing operating costs. Production is expected to increase to 37 million meters per year by 1990 from the 32 million meters per year currently produced of which 63% is sold on the local market while the balance is exported to neighboring West African countries. Aside from IFC's loan, financing of $1.5 million equivalent will be provided for the project by Socidt6 Financi6re S6n6galaise pour le D6veloppement de l'Industrie et du Tourisme (SOFISEDIT), a local development institution in which IFC holds an equity investment. Balance of the financing for the modernization program is expected to come from other financial institutions and from cash generation. - MORE - - 2 - SOTIBA's modernization program is IFC's first project with a company in which the majority is owned (96%) by private Senegalese nationals. IFC helped the Company in structuring the financial plan and in negotiating with other lenders. It also assisted SOTIBA in identifying its needs for additional technical expertise. IFC currently holds investments in five other Senegalese projects, amounting to $17.2 million, in food and food processing, money and capital markets, fertilizers, development finance and tourism. - END -