Announcement of IFC to Invest in Indian Rayon and Industries Limited Carbon Black Plant April 29, 1987

Wednesday, April 29, 1987 Bruce W. McWilliams IFC Press Release No. 87/57 (202) 676-1950 IFC TO INVEST IN INDIAN RAYON AND INDUSTRIES LIMITED CARBON BLACK PLANT The International Finance Corporation (IFC) will make loans of US$3.2 million and SwF 5 million to finance a new carbon black plant in Renukoot, Uttar Pradesh, India. The plant will supply carbon black as a reinforcing agent to the rubber industry in India, where it will be used primarily in the manufacture of tires. The project is part of the diversification program of Indian Rayon and Industries Limited. The plant will be based on the high temperature technology of Phillips Petroleum Company of the U.S., which will be introduced in India for the first time. In addition to carbon black, the plant will be capable of producing its own power as well as steam, which will be sold to a company located next to the project site. The plant, expected to cost a total of US$28.6 million, is scheduled for completion in the second quarter of 1988. The IFC loans will finance the estimated foreign exchange cost of the plant. The balance of the financing will be provided by a mix of internal cash generation and publicly issued debentures. IFC, an affiliate of the World Bank, is the leading private sector agency which provides equity financing and long-term loans without government guarantees to private enterprises in developing countries. -END -