Announcement of First IFC Project in Togo: Privatization of Two Textile Mills February 27, 1987

Friday, February 27, 1987 Monique Amaudry Press Release No. 87/45 (202) 676-9331 IFC'S FIRST PROJECT IN TOGO: PRIVATIZATION OF TWO TEXTILE MILLS The International Finance Corporation will help finance a $29.7 million project in Togo for the privatization and rehabilitation of two of the country's largest state-owned textile mills, ITT and TOGOTEX. The project is part of the Togolese Government's policy to privatize state-owned enterprises. IFC, an affiliate of the World Bank Group, is the world's leading source of direct financing for private investment in developing countries. It provides equity investments and long-term loans at market rates, without government guarantees. ITT and Togotex will be purchased by Pan Atlantic Company S.A., a private company created in Togo for this purpose. Pan Atlantic Company S.A. will implement the rehabilitation, modernization and expansion of the two textiles mills which will begin annual production of knit and woven garments (tee shirts and polo shirts) for export and continue the production of African prints for sale in TogQ and in the region. - MORE - - 2 - Pan Atlantic Company S.A.'s main shareholder, Pen Africa Textile Corporation, a private firm registered in the U.S.A., is owned by a group of private investors from the U.S.A. and the Republic of Korea. The Company's technical partner will be the Korean textile firm Dukseung which specializes in the manufacturing and export of knitted and woven apparels. Dukseung's experience will help Pan Atlantic Company S.A. to secure important export markets in the U.S.A. and in Europe. The project will be completed by 1989 and is expected to generate 5,000 new jobs. IFC is providing a $1 million equivalent equity investment and a $7 million loan for its first project in Togo which is the largest privatization effort undertaken in Togo so far. IFC played a significant role in advising the Government on proposals submitted by private companies to purchase the textile mills and in encouraging the sponsor to make available up to 25 percent of the Company's share capital to Togolese investors in the future. The Corporation's first project in Togo is in line with its continuous efforts to support privatization projects in Africa. - END -