Announcement of IFC Investment in Philippine Shrimp Venture April 21, 1986

~ ~ 181R H Street %W International Finance Corporation Aa ngton DC 20433 USA FOR RELEASE: Monday, April 21 1986 CONTACT: Donald Roessner Press Release No. 86/31 202-676-0394 IFC INVESTS $1.4 MILLION IN PHILIPPINE SHRIMP VENTURE The International Finance Corporation (IFC) has approved a $1.4 million equity investment in Pure Foods Corporation (Purefoods) of the Philippines, which is implementing a $4.7 million, semi-integrated shrimp farming enterprise that will produce and export approximately 1,100 metric tons of shrimp a year. The project follows an aquaculture sector study for the Philippine Government by IFC, which is the leading multilateral institution that assists the economic growth of developing countries by investing in their private enterprise sectors. Purefoods is an established, experienced, Philippines food processor that was established some 30 years ago. It pioneered meat processing in the Philippines and its current diversified operations include processed meat, poultry, a piggery and canned tuna export. Additional equity for the shrimp farming project will be raised through a rights offering to be taken up as follows: $585,000 by the majority shareholder, the Ayala Corporation, which is a large, diversified commercial house; $354,000 by Geo. A. Hormel & Company, a leading United States food processor and technical partner in the company; and $235,000 by minority Filipino shareholders. This will increase Purefoods' capital by approximately 22 percent, resulting in an expanded equity base of $15.4 million upon project completion. A $2.1 million Bank of the Philippine Islands term loan completes the financial plan. MORE -2- The project is expected to result in annual net foreign exchange earnings of $7.6 million. It will create direct employment for about 190 people and indirect employment for about 2,000 on the outgrower farms. The physical components of the project include a feedmill, a nursery and growout hatchery, and a processing line. Shrimp will be obtained from some 300 outgrowers, mostly established fishpond operators who will convert about 1,000 hectares of fishponds into semi-intensive shrimp farms. Pure Foods will provide outgrowers with technical assistance and help them in obtaining financing for pond conversion. Aquatic Farms Ltd. of Hawaii, which has built and operated other hatcheries in Asia, will assist in the design, implementation and start-up of the hatchery. - 0 -