Announcement of IFC to Invest in Chinese Bicycle Venture on January 20, 1987

' Ltana F1tiance Corporatl~/in January 20, 1987 Monique mau ry press Release No. 88/26 202/676-9331 IFC TO INVEST IN CHINESE BICYCLE VENTURE The International Finance Corporation (IFC) will invest $5 million in the expansion of the Shenzhen China Bicycles Co. Ltd. plant to help the company meet growing export demands. Located in China's Shenzhen Special Economic Zone, the Shenzhen China Bicycles plant currently produces 400,000 bicycles per year. When the planned expansion is completed in 1989, production is expected to reach 1 million units per year. IFC's $5 million investment will take the form of a loan to the venture. Other participants will be the Hong Kong (Link) Bicycles Ltd., Shenzhen Municipal Light Industrial Co. (the local sponsor) and the Schwinn Bicycle Company of the United States. Apart from being an equity investor, Schwinn will provide marketing and technical assistance to the project. The project sponsors are projecting that the majority of the production will be exported mainly to Australia, Europe, Japan and the United States. China is the world's largest producer of bicycles. 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 -