Announcement of IFC Investment in Liberian Bank for Industrial Development and Investment (LBIDI) on November 24, 1965

CORPORATION TELEPHONE: EXECUTIVE 3-6360 :tFC Press Release No. 65/12 Subject: IFC Investment in Liberian Bank For Relense AH Net.1spapers for Industrial Development and Wednesday, November 24, 1965 Investment (LBIDI) Liberian, European and United States investors, together with the Inter- national Finance Corporation (IFC), an affiliate of the World Bank, have joined in setting up the Liberian Bank for Industrial Development and Investment (LBIDI) to provide medium and long-term capital to private enterprises in Liberia. The new institution will have at its disposal resources amounting to $4,500,000, including loans from the Kreditanstalt fUr Wiederaufba11 of Germany and the Liberian Government. I The total paid-in share capital of LBIDI is $1,000,000, of which IFC is I ~ subscribing approximately $250,000. This is IFC 1 s first investment in Liberia. An equivalent amount has been s1.~")scribed and paid in by the Liberian Development Corporation, an agency of the Governr.ient devoted to the promotion of industry in Liberia. The remainder of the share oapital has been subscribed by private Liberian investors and by the following institutions: Bank of Monrovia, an affiliate of First National City Bank, New York Firestone Plantations Comp~ny The International Trust Company of Liberia Istituto Mobiliare Italiano LA11CO Joint Venture Liberia Mining Company, Ltd. The Kreditanstalt £Ur Wiederaufbau is extending a loan of DM 10 million ($2,500,000), while the Liberian Gavernrnent, which has actively supported the establishm~nt of LBIDI since its inception, is making a long-term interest-free • loan of $1,0001 000 •  - 2 - In addition, the u.s. Agency for International Development has agreed to con-~ tribute to the cost of management for the new institution and to provide the services of an American consultant finn now in Liberia, for the appraisal of investment proposals on behalf' of LBIDI. Of the new institution's authorized share capital, Sl per c~nt may be held only by Liberian citizens or corporations, the Liberian Government a~ by inter- national institutions (such as IFC) of which Liberia is a member. IFC and the Liberian Government have &greed to reserve their shares for sale to private Liberian i~vestors as a means of encouraging wider local ownership of the institution. LBIDI's operations are expected to contribute to the development of a capital market in Liberia and to further the growth of local industry. Although the industrial sector of the economy is still small, it has been extended considerably ~ in recent years by the establishment of new industries, some sponsored by foreign- owned companies attracted by the favorable business climate and others by local entrepreneurs entering industry for the first time. •