INTERNATIONALZ P { FINANCEfF0 1 CORPORATION

A Member of The World Bank Group

ANNUAL REPORT

1970

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Production of Fiat designed automobiles atZavodi Crvena Zastava. IFC, together with theWorld Bank, helped finance a program to doublethe Yugoslav company's output.

International Finance Corporation

OFFICE OF THE PRESIDENT

1818 H Street, N.W.Washington, D.C. 20433

September 21, 1970

Dear Mr. Chairman:

The Annual Report of the International Finance Corpor-ation for the period July 1, 1969 to June 30, 1970 is sub-mitted herewith to the Board of Governors by the Board ofDirectors in accordance with Section 8 of the By-Laws ofthe Corporation.

The Report describes the activities of IFC during thefiscal year, summarizes its position as of June 30, 1970and includes a description of commitments made duringthe year. Appendices to the Report include financial state-ments and data on each of IFC's commitments.

Sincerely,

Robert S. McNamara

ChairmanBoard of GovernorsInternational Finance Corporation

"The purpose of the Corporation is to further eco-nomic development by encouraging the growthof productive private enterprise in member coun-tries, particularly in the less developed areas, thussupplementing the activities of the InternationalBank for Reconstruction and Development. ...

In carrying out this purpose, the Corporation shall:

i. in association with private investors, assist infinancing the establishment, improvement andexpansion of productive private enterpriseswhich would contribute to the development ofits member countries by making investments,without guarantee of repayment by the membergovernment concerned, in cases where suffi-cient private capital is not available on reason-able terms;

ii. seek to bring together investment opportuni-ties, domestic and foreign private capital, andexperienced management; and

iii.seek to stimulate, and to help create conditionsconducive to, the flow of private capital, do-mestic and foreign, into productive investmentin member countries.

"The Corporation shall be guided in all its deci-sions by the provisions of this Article."

Article OneArticles of AgreementInternational Finance Corporation

ContentsPage

I. The Year's Activities ......... .. . . . .. . . . .. . . . .. . . . 3What Kinds of Investment, Where, andWith What Effects ............................ 4

What Kinds of Investment, Where .............. 4Financial Institutions for Development .... ...... 6With What Effects ......................... 8

Associated Investors ........ . . . . . . . . . . . . . . . . . . 10Sales of Investments ........ . . . . . . . . . . . . . . . . . . 13Borrowings ................................ . 13

II. Basic Policies ............ .. .. .. .. .. .. .. . .. .. .. . 14

III. The Year's Financial Record ............ .. .. .. .. .. . . 15

IV. Administration and Membership .......... . . . .. . . .. . . 16Membership and Subscribed Capital ....... . . . . . . . . 16

V. The Year's Investments ........... ................ 18Appendices ................................... 31

_EL M~~~~~~~~~~~~~~~~~~~~

Branding cattle with dye at Industria Ganadera Colombiana, S.A., a commercial cattle raising venture in Colombia.

Ten-year Summary-Fiscal Years 1961-1970

(in thousands of United States dollars)

1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Gross commitments, by years $6,159 $21,340 $18,050 $20,801 $25,643 $35,346 $49,024 $50,420 $92,865 $111,848Gross commitments, cumulative 51,181' 72,521 90,571 111,372 137,015 172,361 221,385 271,805 364,670 476,518Total project costs, cumulative2 230,476' 373,930 529,832 768,091 927,489 1,062,114 1,397,891 1,631,956 2,116,443 2,609,189Portfolio held by Corporationat end of tiscal year3

Total 35,400 53,444 59,369 67,302 73,583 95,733 133,787 160,828 199,389 279,167Loans 35,400 48,352 46,137 45,994 49,602 60,758 84,063 105,236 126,927 180,725Equity - 5,092 13,232 21,308 23,981 34,975 49,724 55,592 72,462 98,442

Sales4 2,885 1,247 9,550 10,079 13,207 9,767 7,326 18,569 44,868 18,989Disbursements 10,379 11,876 15,915 15,584 16,263 21,841 25,424 33,087 33,405 85,270Gross income 4,378 4,600 5,476 5,371 5,733 7,418 9,225 10,132 11,980 15,388Net income plus net capital

gains or losses 2,784 2,705 3,698 3,244 2,894 5,227 6,334 6,234 7,679 10,196Reserve against losses, cumulative 10,6005 13,305 17,003 20,247 23,141 28,368 34,702 40,936 48,615 58,811Member countries 59 63 73 78 78 81 83 86 91 94

I Includes commitments made from 1956 through 1960. 4 Includes acquisitions by other investors of securities covered by standby and underwriting2 Total new investment, by IFC and others, in assisted enterprises. commitments and other dispositions of loans and equity investments.

3 Includes commitments which have been signed but on which funds may not be withdrawn until 5 Includes allocations to Reserve against Losses from 1956 through 1960.certain legal formalities have been completed and other conditions fulfilled. As ofJune 30, 1970 this figure was $70.2 million.

2

$3,000

I. The Year'sActivities

2,500 -

During the year, the International Finance Cor-poration continued to expand the volume and scopeof its activities. Highlights of the year's activities were:

* IFC made investments in enterprises in lessdeveloped countries amounting to $111.8 millionin the twelve months ended June 30, 1970. This

2,000 _ was $19.0 million, or approximately 20 per cent, higherthan a year previously.* Others invested $381 million in these businesses.(See graph to right.) These ventures thus provideda total of $493 million of new investment.* There were 29 commitments, 21 of them of $1million or more, to 28 enterprises in 19 countries inAfrica, Asia and the Middle East, Europe and LatinAmerica and one to a regional investment institution.* IFC broke new ground in Fiscal 1970 by helpingorganize and finance a channel for investment by

, 1,500 private enterprise in Yugoslav companies, the

International Investment Corporation for Yugo-slavia (IICY), and by a loan to increase the resourcesof a privately owned, regional institution: ADELAInvestment Company, S.A.* Commitments made in Fiscal 1970 raised IFC'stotal investments to $476.5 million in 153 businessesin 43 countries. Others have invested $2,132.7 mil-lion in these ventures, making a total of $2,609.2million. (See graph to left.)

1,000 * IFC's net income rose by more than a fifth to

$9.2 million. Over the years, the return on invest-ments in IFC's portfolio at June 30, 1970 has aver-aged 9.08 per cent, per annum.

$600

500 500

400 -'(0

300

Total New Investment in IFC-Assisted Enterprises | 200 °

IFC's Commitments to these Enterprises 100_ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~11 ;in100

IFC's Subscribed Capital

Fiscal Years 1957/70 Fiscal 1970

What Kinds of Investment,Where, and

With What Effects

. What Kinds of Investment, Where

Nineteen of IFC's investments in Fiscal 1970 werein manufacturing, five in development finance insti-tutions, two in mining, two in tourism and one in atelephone company.

Some $80.0 million, or 72 per cent, of its $111.8million total commitments during the year helpedfinance manufacturing enterprises. Taken togetherwi th investments of some $13.5 million in financialinstitutions operating at the local, national or regionallevel and using their funds chiefly for industrializa-

Y ~~~tion projects, and $12.4 million committed to min-ing projeCts, this means that approximately 95per cent of the funds committed by the Corpora-tion in Fiscal 1970 was directed towards industrialdevelopment.

Of the $493 million committed jointly by IFCand others in Fiscal -1970, some $219 million went toestablish 13 new enterprises. Approximately $274 millionwas for the expansion of 15 existing enterprises,including replenishment of the foreign exchangeresources of three development finance institutions.

The Corporation's manufacturing investments inFiscal 1970 included enterprises in the followingfields:

Paper and paper products Textiles and fibersAutomobiles PolyethyleneGlass AluminumCeramics FertilizerCement

In all, IFC made investments in 19 countries in Fiscal1970. It made its first investments in Ceylon, the

Loading sulphur at Societe Industrielled'Engrais au S6n6gal, West Africa'sfirst fertilizer producer.

IFC Commitments by Types of Business and by AreasFiscal 1957 Through Fiscal 1970

Per Cent of Total

0 3 6 9 12 15

Manufacturing

Paper & Paper Products .................. I

Fertilizers ................................

Iron & Steel ....... I I

Cement & Other Construction Materials. . .I

Textiles & Fibers .........................

Machinery ......................... ..... I

Food & Food Processing ................

Chemicals & Petrochemical Products .. .. I I I

Other Manufacturing .....................

Other

T o urism .................................

Utilities, Printing & Publishing ............. I.----.......I

M ining .............................. ...

Development Banks ......................

L I I I I I I . ! I I

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70

Millions of U.S. Dollars

Africa i Asia & Middle East Europe & Other Latin America & Caribbean

IFC Commitments by Years and by AreasFiscal 1957 Through Fiscal 1970

1957-61 1962-66 1967 1968 1969 1970

50 100 150 200 250 300 350 400 450 500

25 75 125 175 225 275 325 375 425 475

Africa Asia & Middle East Europe Latin America & Caribbean& Other

Republic of China, the Democratic Republic of the Financial Institutions for DevelopmentCongo and Yugoslavia. Its other investments weremade in: By the end of Fiscal 1970 IFC had invested $42.5

Brazil Korea million in 24 development finance companies andChile Malaysia other financial institutions operating in 19 countriesColombia Mexico and regionally in Latin America.Ethiopia NigeriaGreece Philippines They are:Honduras Tunisia COLOMBIA MOROCCOIndia Turkey Corporaci6n Financiera Banque Nationale pourKenya Colombiana in Bogota le D6veloppement

IFC continued in Fiscal 1970 to emphasize the Corporaci6n Financiera Economique (BNDE)Nacional in Medellfn NIEA

identification and promotion of projects. This included Corporaci6n Financiera NIGERIAassistance In the organization and financing of East de Caldas in Manizales Development BanklAfrica's first large-scale paper industry, Panafrican Corporaci6n Financiera Ltd. (NIDB)Paper Mills (E.A.) Limited and the International del Norte in Barranquilla PAKISTANInvestment Corporation for Yugoslavia. During the Corporaci6n Financiera Pakistan Industrial Credityear work continued on setting up a cement plant DEMOCRATIC REPUBLIC and Investment Corpora-in Indonesia, and the Corporation made a second OF THE CONGO tion, Ltd. (PICIC)investment of $37,500 in a pilot company, Com- Societ6 Congolaise de PHILIPPINESpanfa Pino Celulosa de Centro America, S.A. (Copino), Financement du D6vel- Private Developmentwhich is seeking to develop a large pulp and paper oppement (Socofide) Corporation of thewhich is seeking to evelop a large pulpECUADOR Philippines (PDCP)industry to utilize the resources of Honduras' Olancho COFIEC. Ecuatoriana de SPAINforest preserve. Desarrollo S.A. Compania Banco del Desarrollo

Financiera Econ6mico Espanol,FINLAND S.A. (Bandesco)

Total New Investment in Enterprises Assisted by IFC, Teollistamisrahasto Oy- THAILANDIndustrialization Fund of THILndusraiacand in Those that Became Operative by End of Fiscal 1970, Finland, Ltd. (IFF) Industria Finance

by Areas GREECE (IFCT)National Investment

Fiscal 1957 Through Fiscal 1970 Bank for Industrial TUNISIA$1,200 Development, S.A. Societe Nationale

(NIBID) d'Investissement (SNI)_ 1,100 IVORY COAST TURKEY

Banque Ivoirienne de Turkiye Sinai KalkinmaD6veloppement Indus- Bankasi, A.S. (TSKB)

_ 1,000 triel, S.A. (BIDI) VENEZUELAKOREA C.A. Venezolana de

_ 900 Korea Development Desarrollo (SociedadFinance Corporation Financiera) (Cavendes)

. - ~~~~~~~~(KDFC)_ 800(KDFC YUGOSLAVIA.4 ~~~~~~~~~LIBERIA

;2 ?. s Liberian Bank for International Investment- 700 - Industrial Development Corporation for

: D and Investment (LBIDI) Yugoslavia (IICY)i~ > , MALAYSIA REGIONAL-

- 600 2 Malaysian Industrial LATIN AMERICADevelopment Finance ADELA Investment

- 500 Berhad (MIDF) Company, S.A.

- 400 During the year IFC helped establish two develop-ment finance institutions and helped replenish the

300 ~capital of three others. Its investments in these fiveinstitutions came to $13.5 million.

- 200 One of the new institutions IFC helped set upduring the year, the International Investment Corpora-

- 100 tion for Yugoslavia (IICY), is a pioneering venturethat has exceptionally broad financial support. [ICY

I 0 was established to organize joint ventures betweenAfrica Europe Asia & Latin America foreign private and Yugoslav enterprises, including

& Other Middle East & Caribbean arranging the financing of those projects as neces-

Dark Bars: Total New Investment in Enterprises Assisted by IFC

Light Bars: Total New Investment in Enterprises that became Operativeby June 30, 1970

Production at plants assisted by development financecompanies the World Bank Group has helped finance:

-Making fluorescent tubes in acompany assisted by the KoreaDevelopment Finance Corporation(KDFC). L

7-~

-Moroccan fabrics being inventoriedat a company which Banque Nationalepour le Developpement Economique(BNDE), of Morocco, helped finance.

-Grain storage and shipment at aVenezuelan company assisted by C. A.Venezolana de Desarrollo (SociedadFinanciera).

-Hard plastic pipes produced by aconstruction materials firm assisted bythe Turkish development financecompany, Turkiye Sinai KalkinmaBankasi, A.S. (TSKB).

=Ir !t t

, >* +; > r vt; >- GS=W w ' -,

sary. Fifteen Yugoslav banks supplied $3 million of to ADELA Investment Company, S.A., which providesIICY's $12 million share capital and IFC $2 million. capital, entrepreneurial and technical help to privateThirty-nine banks in Western Europe, the United enterprises in Latin America.States and Japan supplied the remainder. IFC joined other investors in increasing the capital

The other new investment institution IFC helped stock of two development banks: Societe Nationalefinance during the year, Soci6t6 Congolaise de d'lnvestissement (SNI), of Tunisia, to which IFCFinancement du Developpement, (Socofide), ex- committed $628,572 for new equity, and Corporaci6ntended the Corporation's activities to the Demo- Financiera de Caldas, of Colombia, where IFC tookcratic Republic of the Congo, a new member of up $112,182 of a new stock offering.IFC. Socofide also has a wide financial base. The In addition to cooperating with and supportingCongo Government and local investors subscribed local development finance companies, IFC collab-55 per cent of Socofide's $4 million capital stock, orated with the following multinational institutionsIFC subscribed $750,000, or approximately 19 per in providing capital for investment in developingcent. The remaining 26 per cent was subscribed by countries during Fiscal Year 1970:13 financial institutions in Belgium, France, Germany,Italy, Japan and the United States. The International ADELA Investment East African DevelopmentDevelopment Association, a member of the World African Development Bank Private InvestmentBank Group, extended a $5 million credit to Socofide. Banco Centroamericano de Company for Asia

In supplying additional capital to established Integraci6n Econ6mica (PICA) S.A.investment companies, IFC made its first commit- These institutions provided equity or loans toment to a privately financed international institu- projects, helped underwrite a public share issue,tion operating regionally. This was a $10 million loan and bought portions of IFC investments.

With What Effects

IFC investment activities in 1970 provided support leading aluminum makers and an earner of foreignfor the efforts of its developing member countries exchange for the Greek economy.to expand the capacity of their private sector to pro- -Poliolefinas, S.A. Industria e Comercio will makeduce goods and services, to create new employ- polyethylene from raw material manufactured by ament opportunities for their growing populations, Brazilian petrochemicals firm, Petroquimica Uniao,to strengthen their foreign trade position and to S.A., which IFC helped finance last year. This is thebuild new financial institutions. first of several expected projects, downstream from

Investments in which IFC was associated during Petroquimica, intended to give Brazil a balancedthe year helped in the following ways: petrochemicals industry, making use of Brazilian

-They are expected to provide over 19,000 new products.jobs in the enterprises financed. One of IFC's important objectives is to encourage

-They are expected to add some $53 million in private investment in developing member countriesnew export capacity and to reduce needs for imports through the mobilization of local capital and theby approximately $167 million. broadening of local ownership of industrial enter-

-The Paper Industries Corporation of the Philip- prises. Several of the Corporation's investments con-pines (PICOP), which is an addition to an existing tributed to these objectives through public sharelumber operation, will give Southeast Asia an inte- offerings supported by local underwriting:grated forest products industry. -Financing for the Paper Industries Corporation

-A project for expanding the output of Aluminium of the Philippines included a public offering of 60de Grece, Societe Anonyme Industrielle et Com- per cent of the new equity. The public sale of PICOPmerciale, will also help lower unit production costs shares was underwritten, with the help of IFC, by aand make the company more competitive interna- group of Philippine institutions headed by Bancomtionally, strengthening its position as one of Europe's Development Corporation.

8

Commitments Fiscal 1970Loan Equity Total

BrazilPoliolefinas, S.A. Industria e Comercio (polyethylene) .$ 5,500,000 $2,877,100 $ 8,377,100

CeylonPearl Textile Mills, Ltd. (textiles) ....... . . . . . . . . . . . . . . . . . 2,500,000 750,000 3,250,000

ChileMinera Sagasca, S.A. (copper mining and leaching) ... . ........ 10,450,000 450,000 10,900,000

ChinaAsia Cement Corporation (cement) ...... . . . . . . . . . . . . . . . 3,000,000 1,218,750 4,218,750Oriental Chemical Fiber Corporation (synthetic fibers) ..... . . . . 3,000,000 - 3,000,000

ColombiaCorporacion Financiera de Caldas (development financing) .... . . - 112,182 112,182Enka de Colombia, S.A. (synthetic fibers) ...... . . . . . . . . . . . . 1,000,000 741,159 1,741,159Enka de Colombia, S.A. (synthetic fibers) ...... . . . . . . . . . . . . - 16,806 16,806Pro-Hoteles, S.A. (tourism) ....... . . . . . . . . . . . . . . . . . . . . 800,000 245,425 1,045,425Promotora de Hoteles de Turismo Medellifn, S.A. (tourism) .... . . . 227,000 111,421 338,421

Congo, Democratic Republic ofSociete Congolaise de Financement du Developpement(development financing) ....... . . . . . . . . . . . . . . . . . . . . - 752,758 752,758

EthiopiaCotton Company of Ethiopia, S.C. (textiles) ..... . . . . . . . . . . . 450,000 168,000 618,000

GreeceAluminium de Gr&ce Societe Anonyme Industrielle etCommerciale (aluminum) ....... . . . . . . . . . . . . . . . . . . . . 3,500,000 5,100,000 8,600,000

HondurasCompanfa Pino Celulosa de Centro America, S.A.(pulp, paper and lumber) . .... .................. .... . - 37,500 37,500

IndiaZuari Agro Chemicals, Limited (fertilizers) ...... . . . . . . . . . . . 3,000,000 - 3,000,000

KenyaPanafrican Paper Mills (E.A.) Limited (pulp and paper) ..... . . . . 10,580,000 4,071,799 14,651,799

KoreaAtlas Paper Company, Limited (paper) ...... . . . . . . . . . . . . . . 4,500,000 500,000 5,000,000

MalaysiaIndia-Malaysia Textiles, Berhad (textiles) ...... . . . . . . . . . . . . 1,250,000 249,900 1,499,900

MexicoMinera del Norte, S.A. (iron ore mining) ...... . . . . . . . . . . . . 1,500,000 - 1,500,000

NigeriaArewa Textiles, Limited (textiles) ....... . . . . . . . . . . . . . . . . - 3,878 3,878

PhilippinesMariwasa Manufacturing, Incorporated (ceramic tiles) ..... . . . . . 769,000 326,450 1,095,450Paper Industries Corporation of the Philippines(pulp and paper)(including a $1,396,648standby commitment) ....... . . . . . . . . . . . . . . . . . . . . - 2,214,284 2,214,284

Philippine Long Distance Telephone Company (telephone service) 4,500,000 - 4,500,000TunisiaSociete Nationale d'lnvestissement(development financing) ....... . . . . . . . . . . . . . . . . . . . . - 628,572 628,572

TurkeyAnadolu Cam Sanayii, A.S. (container and flat glass) ..... . . . . . . 10,000,000 1,583,330 11,583,330Viking Kagit ve Seluloz, A.S. (pulp and paper) ..... . . . . . . . . . . 2,500,000 667,334 3,167,334

YugoslaviaInternational Investment Corporation for Yugoslavia(development financing) ....... . . . . . . . . . . . . . . . . . . . . - 2,000,000 2,000,000

Zavodi Crvena Zastava/Fiat S.p.A. (automobiles) ..... . . . . . . . . - 8,000,000 8,000,000

RegionalLatin AmericaADELA Investment Company, S.A. (development financing) .... . 10,000,000 - 10,000,000TOTALS . .... ... ..................... ...... .... $79,026,000 $32,826,648 $111,852,648

9

-Approximately 20 per cent of the equity of the AssociatedIndian fertilizer producer Zuari Agro Chemicals,Limited, was sold to the public through an Indian Investorsunderwriting syndicate.

-Financing of India-Malaysia Textiles, Berhad, in Other investors in enterprises assisted by IFC inWest Malaysia, included provision for sale to the Fiscal 1970 included 33 business firms and 100 finan-Malaysian public of a part of the new equity through cial institutions. Of these, 63 were in developingan underwriting by the Malaysian Industrial Devel- countries. They put up $203 million of the $493 mil-opment Finance Berhad, and the privately financed lion total financing. There were 37 investors frominternational investment company, Private Invest- industrialized countries, who committed $178 mil-ment Company for Asia (PICA) S.A. lion. Other members of the World Bank Group-the

-Approximately 20 per cent of the equity of Pro- World Bank and the International Development Asso-Hoteles, S.A., formed to build a hotel in Cali, Colom- ciation-were among those associated with IFC in itsbia, was committed to public sale, underwritten by Fiscal 1970 investments, supplying $15 million loantwo privately owned Colombian development banks, capital to two projects.Corporaci6n Financiera Colombiana and Corpora- Some $146 million, or 30 per cent, of the new invest-ci6n Financiera del Valle. ment in projects assisted by IFC was equity, $281 mil-

-Over a thousand glass retailers in Turkey and a lion, or 57 per cent, was debt, and $66 million, or 13consortium of 27 local corporate and individual per cent, was derived from cash generation.sponsors put up a major part of the equity of the Sources in the developing countries provided $77Turkish glass making firm, Anadolu Cam Sanayii, million, or approximately 52 per cent of the equity,A.S. (ACS). sources from industrialized countries provided $36

million, or 25 per cent of the equity, and IFC $33 mil-lion, or 23 per cent.

Businesses and financial institutions in capital export-ing countries provided $142 million of the loan capi-tal, IFC provided $79 million, and lenders in the develop-ing countries supplied $60 million.

The new Jamaica Pegasus convention andtourist hotel designed to help the country realize Business firms associated with IFC in its invest-its high potential for earning from travel. ments in Fiscal 1970 included:

Aerov(as Nacionales de Fiat S.p.A., ItalyColombia (Avianca), Fuji Spinning Company,Colombia Japan

Algemene Kunstzijde Unie Generalexport, YugoslaviaN.V. Group (AKU)-now Glaverbel, S.A., BelgiumAKZO N.V.-the A.Y.S. Gnanam andNetherlands associates, Ceylon

. ~~~~~~~~~Asia Cement Corporation,Republic of China Y.Z. Hsu and associates,

/ ~~~~~~~~~~~~~~~~Republic of China

/ ~~~~~~~~~Birla Cotton Spinning and Hyundai Group, KoreaWeaving Mills, Ltd., India Intercontinental Hotels

Corporation, United StatesCompagnie Pechiney, S.A., International Paper

France Company, United StatesContinental Copper & Steel Karteks Ticaret ye Sanayii,

Industries, Inc., United A.S., TurkeyStates ~~~Mitsui and Company,

Corporaci6n del Cobre, Limited, JapanChile ~~~~National Distillers and

De Forenede Papirfabrikker, Chemical Corporation,Denmark United States

Dowa Mining Company Orient Paper Mills, Limited,, Limited, Japan India

Otomobilcilik ve Ticaret, Standard Fruit Company, SOURCES of IFC FUNDSA.S., Turkey United States

Petrobras Qufmica, S.A.- Ugine Kuhlmann, France Fiscal 1957 Through Fiscal 1970

Petroquisa, Brazil Unipar-Uniao de IndclstriasPetroqufmicas, S.A., Brazil

San Miguel Corporation, United Fruit Company,Philippines United States

SubscribedCapital

$107

Financial institutions which made independent Unused Borrowing

investments in IFC assisted projects in Fiscal Year Authority

1970 included: Sales of \ $2281970 included: C~~~~~~~~ommitmeInts

ADELA Investment Corporaci6n Financiera to OthersCompany, S.A., Nacional, ColombiaLuxembourg

African Development Bank Development FinanceArrendadora Banamex, S.A Company of Kenya

de C.V., Mexico LimitedDevelopment Finance Repayment Borrowings

Banca Commerciale Italiana Corporation of Ceylon & Profits from World Bank

Group, Italy East African Development $90 $200Banca Nazionale del Lavoro, Bank

Italy Export-import Bank of theBanco Bozzano Simonsen de United States

Investimento, BrazilBanco Centroamericano de Hellenic Industrial

Integraci6n Econ6mica Development Bank,

Banco Nacional de Fomento, GreeceHonduras House of Investments, Inc., Millions of U.S. Dollars

Bancom Development PhilippinesCorporation,Philippines The Industrial Bank of

Bank of America, New York, Japan, LimitedUnited States The Industrialization Fund Organizing Committee for Private Investment Company

Bank of Ceylon for Developing Countries, the Pan American Games, for Asia (PICA) S.A.

Bank of Communications, Denmark C I .Republic of China Instituto de Fomento Colomba Privredna banka u Beogradu,

The Bank of Tokyo, Ltd., Industrial, Colombia Philadelphia International YugoslaviaJapan lnvestbanco, Brazil Investment Corporation, Sinai Yatirim ve Kredi

Banque de Bruxelles, SA., Jugoslavenska investiciona United States Bankasi A.O., Turkey

Belgium n, Yugoslave nPhilippine American Life Societe Francaise pour leBanque Francaise du banka, Yugoslavia Insurance Company, Developpement de

Commerce Exterieur, Kreditanstalt fuer Philippines l'Aluminium en Grece,France Wiederaufbau, Germany Private Development S.A., France

Banque Lambert, Belgium Corporation of the Societe Generale deLoeb, Rhoades & Co., Philippines Belgique, Belgium

Caisse Centrale de United StatesCooperation Economique, The Long-Term Credit Bank Ten of the above institutions also invested in the

France of Japan, Limited, Japan International Investment Corporation for Yugoslavia

CCP Securities Corporation, Majlis Amanah Ra'ayat, (IICY). They and 13 additional Yugoslav and 31 foreign

Philippines Malaysia institutions that also sponsored [ICY are listed on

China Development Malaysian Industrial Page 29.Corporation, Republic Development Financeof China Berhad, Malaysia

Commercial Bank of Manufacturers HanoverEthiopia Trust Company, United

Commerzbank AG, Germany StatesCorporaci6n Financiera Morgan Guaranty

Colombiana, Colombia International BankingCorporaci6n Financiera de Corporation, United States

Caldas, ColombiaCorporacion Financiera del National Bank of the

Valle, Colombia Congo

11

Some of the wide variety of containers forPakistan business manufactured by Packages, Ltd.

Processing baby chicks at Protinal,C.A., Venezuelan producer of livestockfeeds and other inputs for improvementof Venezuelan agriculture.~~~~~~~~~~Lrcsiniayciksa rtnl

C.A.,Veneuelanprodcer o livstoc

fees ad oherinutsforimpoveen

X'4~ ~ ~ ~~~~~~~ofVnzea arclue

Ij' - 7

Sales of C.A. Venezolana de Ingenieros Civiles Asociados,Desarrollo (Sociedad S.A., Mexico

Investments Financiera) (Cavendes), The Long-Term Credit Bank

Cementos B(o-B(o S.A., of Japan, LimitedThe Corporation increases the resources available Chile Manufacturers Hanover

to it for investment by selling to others portions of COFIEC. Ecuatoriana de Trust Company, Unitedits invstment. Such ales my be mae at te time Desarrollo S.A. Companfa States

its investments. Such sales may be made at the time Financiera, Ecuador The Mitsui Bank, Limited,of IFC's investment or later. Credit Chimique, France lapan

Sales continued to be substantial in Fiscal 1970 Deutsch-Sudamerikanische Natonal and Grindldespite worldwide tightness in money markets, and Bank AG, Germany Bank, Limited, Greatamounted to $19.0 million. This brought cumulative Euramfin Holdings, Societe Britainnet sales, including the acquisition by others of $27.5 Financiere S.A., National and Grindlaysmillion of securities covered by standby and under- Luxembourg Finance and Developmentwriting commitments, to $142.5 million, a sum greater First National City Bank, Corporation, Limited,

Great Britainthan IFC's subscribed capital of $107 million. These United States The Northern Trustsales have been a major factor in enabling the Corpo- First Pennsylvania Overseas International Bankingration to make total investments amounting to well Development Company, Corporation, United States

over fourtimes itssubscribe capital.Limited, the Bahamasover four times its subscribed capital. Franklin International Cor- Private Investment CompanySeveral institutions invested more than once in IFC poration, United States for Asia (PICA) S.A.

commitments during Fiscal 1970. Purchasers included: Girard International Productos de Concreto, S.A.

Arab African Bank, United The Bank of East Asia, Investment Corporation, shareholders, Costa RicaArab Republic Limited, Hong Kong United States Shanghai Commercial Bank,

Atlantic Bank of New York, Banque Francaise du Hellenic Industrial Ltd., Hong KongUnited States Commerce Exterieur, Development Bank Societe Financiere

France The Hong Kong and Europeenne-S.F.E., FranceBamerical International Barclays Bank D.C.O., Shanghai Banking Societe Generale de

Financial Corporation, Great Britain Corporation Hong Kong Banque, BelgiumUnited States Barclays Overseas

Bank of America, New York, Development Corporation The Industrial Bank of Vantage 10-90 Fund, UnitedUnited States Limited, Great Britain Japan, Limited States

Borrowings

In Fiscal 1970 an earlier World Bank loan of $100million to IFC was consolidated into a new loan of$200 million. IFC's Articles permit it to borrow up tofour times its unimpaired subscribed capital and sur-plus so long as the Corporation is indebted to theBank. This left IFC at the end of the fiscal year with$228 million of unused borrowing authority.

13

IL. BasicPolicies

In Fiscal 1970, a revised edition of the Corporation's It will also continue to attach importance to ensur-operating policies was issued, in English, French, ing that capable experienced management is avail-German, Italian, Portuguese, Spanish and in summary able, that market prospects have been carefullyin Japanese. Some of its chief points are summarized reviewed, that the financial plan is realistic and thatbelow: the technical aspects of the project have been thor-

The purpose of IFC is to further economic devel- oughly explored.opment by encouraging the growth of productive The typical IFC investment will continue to be aprivate enterprise in developing member countries. share subscription plus a long-term loan. However,While it seeks to do this by various means, one of IFC has made, and where appropriate will make,its principal activities is promoting and stimulating straight loans, i.e., investments without an equitythe flow of private capital, both foreign and domes- feature.tic, into productive investments in developing countries. IFC intends to increase its efforts in the area of

The emphasis upon profitability as an essential cri- project identification and promotion. It is makingterion for an IFC investment remains of first impor- staff available for substantially more work in thetance because IFC wants partners in the enterprises field to define promising projects, organize technicalin which it invests, wants to revolve its funds by sell- and managerial support for them and bring them toing participations in its investments, and, above all, a stage where suitable financing can be arranged.wants to encourage the growth of sound productive To assist in these efforts, IFC has appointed a Specialprivate enterprise. Representative in Europe in addition to its Special

However, economic benefit to the country con- Representative in the Far East.cerned is equally essential. Consequently, stress is The Corporation will give increasing attention tolaid upon the need to find and assist promising busi- the building of institutions which are likely to makeness ventures that are likely to contribute to the an important contribution to economic develop-neonomi venturel t areof the country. ment. Supplementing the Bank's work of lending toeconomic development othcunr.development finance companies, IFC will continue

IFC will be flexible in its operating policies, being to assist the growing number and kinds of invest-prepared within the limits of its investment criteria ment companies operating at the local, national orto do whatever needs to be done to get a sound regional level. Some of these companies are ownedenterprise moving. Thus IFC will invest in any type and controlled locally while others have been spon-of sound and productive private enterprise provided sored by financial institutions and interests abroad.IFC's presence serves a constructive purpose. IFC's All are eligible for IFC support if they need it, areemphasis upon private enterprise does not, of itself, well managed,contributetodevelopmentand followpreclude assistance to ventures in which a govern- policies generally consistent with those of IFC. Thement has a minority interest. Corporation will maintain close working relation-

The Corporation will consider a project of any size, ships with these organizations.but will continue to limit investment for its own In an endeavor to create broader-based capitalaccount to approximately $20 million. Emphasis is markets in developing countries, the Corporationlaid upon referring investments below $1 million to will also help establish and support institutionslocal or regional investment institutions. Here also, designed to mobilize domestic savings and improvehowever, flexibility is the rule, and these limits can the security and liquidity of investments.be set aside when appropriate. In recognition of the fact that a vigorous industrial

In accordance with past policy, IFC will not replace sector can contribute significantly to a country'sprivate capital, nor will it be a majority shareholder overall development, IFC will be prepared, uponin any enterprise. It will continue to insist upon local request of member countries, to give advice andparticipation and will invest only where the host counsel to its member governments on policies thatgovernment does not object, and where arrange- will further the development and growth of privatements can be made for the repatriation of funds. investment.

14

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Construction workers raising the DawoodHercules Chemicals Limited fertilizer plantin Pakistan.

Ill. The Year'sFinancial Record

Commitments by IFC in Fiscal 1970 of $111.8 mil- available for commitment, in addition to unused

lion brought cumulative gross commitments by the authority to borrow some $228 million.

Corporation since it began business in 1956 to $476.5 IFC Resources and Commitments

million. Cumulative net commitments-taking into Fiscal 1957 Through Fiscal 1970

account cancellations, terminations and write-offs- (Millions of US Dollars)

increased during the year from $348.5 million to Capital subscriptions ................ $107.0

$453.0 million. World Bank loan ................... 200.0

At the close of the fiscal year, the Corporation held Reserve against losses ....... ........ 58.8

a portfolio of $279.2 million, consisting of loans Repayments ............. ......... 31.4

aggregating $180.7 million and equity investments Sales' ........................... 142.5

of $98.5 million. A year earlier, the portfolio stood Total resources .............. $539.7at $199.4 million, consisting of $126.9 million in loans Commitments ..................... $476.5

and $72.5 million in equity. Less-Cancellations and write-offs ...... 23.5 453.0

Disbursements rose substantially, from $33.4 mil- Uncommitted resources at June 30, 1970. . $ 86.721 Includes acquisitions by others of $27 5 million of securities coeered by IFC

lion in Fiscal 1969 to $85.3 million in Fiscal 1970. This standby and underwriting commitments.

reflected the sharp rise of commitments in recent 2Consists partly of proceeds of the World Bank loan (which can be used onlytor loans) and partiy ot subscribed capital and accumulated earnings (which

years, and brought cumulative disbursements to can be either ioaned or invested in equities).

$291.7 million.As the following table shows, the Corporation IFC's gross income in Fiscal 1970 was $15.4 million,

ended the year with resources of $86.7 million still consisting of $7.4 million of interest and other charges

15

on loans, $6.8 million of dividends and $1.2 million Adb O de

of other income. Expenses were $6.2 million. Net * m InIstratIonoperating income was thus $9.2 million, 23 per centhigher than the previous year's net income of and Membership$7.5 million.

Net profits of $1.0 million on sales of investmentsraised net income and profits to $10.2 million as William S. Gaud was appointed Executive Viceagainst $7.7 million the year before. The $1.0 million President of IFC on October 1, 1969. He succeededof profits on sales resulted from 17 transactions on Martin M. Rosen, who had been Executive Vice Pres-which profits of $1.1 million were realized and a loss ident of the Corporation since October 20, 1961.of $101,708 was incurred on the sale of IFC's hold- Ladislaus von Hoffmann was appointed Vice Presi-ings in Aevol Industrial Company of Organic Fer- dent, effective July 1, 1970, succeeding James S. Raj.tilizers, S.A. in Greece. During the year, the Department of Investments-

At the end of Fiscal 1970 the Corporation's cumula- Africa, Asia and Middle East was reorganized intotive net income and profits totaled $58.8 million, all two new departments, a Department of Investmentsof which has been transferred to the Corporation's -Africa and Middle East, of which Albert Adomakohreserve against losses. was appointed Director, and a Department of Invest-

Through the end of Fiscal 1970, the average annual ments-Asia, of which Ronald Jones was appointedreturn on equity investments held by the Corporation Director.over their present life was 9.80 per cent, and the Two other new posts were created and filled.similar return on loans was 8.60 per cent. This resulted Moeen A. Qureshi was appointed Economic Adviserin an average annual return of 9.08 per cent, com- to IFC. Alfred E. Davidson was appointed Specialpared to 8.45 per cent at the end of Fiscal 1969. Representative of IFC in Europe.These returns reflect dividends, interest and other IFC's international advisory panel met with thecharges, profits and losses on sales of portions of Corporation's officers and management in Washing-investments, and miscellaneous charges and credits. ton in October 1969, to discuss IFC activities and

policies. The panel members are: Dr. Hermann J.IFC's profits on sales of investments and other trans- Abs, Chairman of the Supervisory Board of the

actions smice its inception in 1956 have amounted to Deutsche Bank, A.G., Frankfurt; Viscount Harcourt,$o5.1 millon. Losses-icluding losses of $553,334 due Managing Director, Morgan Grenfell & Company,to a currency devaluation-have amounted to $1.6 Limited, London; Dr. Raffaele Mattioli, Chairman,million or three-tenths of one per cent of net Banca Commerciale Italiana, Milan; Andre Meyer,commitments. Senior Partner, Lazard Freres & Company, New York;

Two commitments were cancelled in full during and Baron Guy de Rothschild, Partner, de Rothschildthe year. One was a $6.23 million commitment to Freres, Paris.Karnaphuli Paper Mills, Limited, in Pakistan, made At the end of Fiscal 1970, IFC had a staff of 131in Fiscal 1969. The other, made in the current fiscal including nationals of 27 countries. Of these, 75year, was a commitment of $338,421 to Promotora were professionals.de Hoteles de Turismo Medellin, S.A., in Medellin,Colombia. Four other small, partial cancellations ofunused commitments totaled $764,714. This broughtcumulative cancellations and write-offs since 1956 Membership andto $23.5 million.

Two other investments were repaid or sold in full Subscribed Capitalduring the year, bringing the total number of invest-ments closed out to 39 in 19 countries, represent- Three countries became members of the Interna-ing $26.9 million disbursed. tional Finance Corporation in Fiscal 1970, raising

At the close of the year D.L.R. Plasticos do Brazil, membership to 94. Swaziland joined the CorporationS.A. was in default of $200,000, as was the case at the on September 22,1969, with a subscription of $35,000.end of Fiscal 1969. Fertilizantes Sinteticos, S.A., of The Democratic Republic of the Congo became aPeru, while current on its primary debt, was in arrears member on April 15, 1970, with a subscription ofon payments of $65,701 interest due on convertible $332,000. The Yemen Arab Republic joined on Maysubordinated debentures. Editorial Codex S.A., of 22, 1970, with a subscription of $47,000. These acces-Argentina had not paid interest and commitment sions raised total subscriptions to the Corporation'scharges due amounting to $304,628. capital to $106,954,000.

16

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Loading at General Cement Company in Greece.

Pu-~~~~~~~~~~~~~~~~-

Workers set up a loom at Textiles Fabricato de -j FNicaragua, S.A., which began production for `7 i FL\use in Central America this year.

:11~

Production at Malayawata Steel, Berhad, _Malaysia's largest single industrial enterprise. /

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_v* ~/ ';

V. The Year'sInvestments

BRAZIL CEYLON$8,377,100 in Poliolefinas, S.A. $3,250,000 in Pearl Textile Mills Ltd.,

Industria e Comercio, a $29.0 a $13.8 million integratedmillion polyethylene textile mill.enterprise. Pearl Textile Mills will have an annual capacity of

This was a second investment by IFC to help estab- 13.4 million yards of cotton and polyester-cotton fabric.lish an integrated petrochemical products industry The mill will provide some 1,700 new jobs. It isin Brazil. Poliolefinaswill operatea low-density poly- expected to generate net foreign exchange savingsethylene plant located at Capuava, near Sao Paulo. of more than $1 million a year by meeting demand

At full capacity, Poliolefinas is expected to make for textiles in Ceylon that currently exceeds domes-a substantial net foreign exchange contribution to the tic output.Brazilian economy. It is also expected to stimulate Mr. A.Y.S. Gnanam, a prominent Ceylonese indus-further investment in businesses converting poly- trialist, sponsored the company and, with a groupethylene into consumer goods. Polyethylene con- of associates, provided more than 60 per cent of thesumption has grown rapidly in Brazil during the past equity.few years. Presently about half of its consumption An additional 16 per cent of the equity is to beis supplied by imports. raised through a public stock offering in Ceylon,

National Distillers and Chemical Corporation, of making the company three-quarters Ceylonesethe United States, and two Brazilian companies were owned. The public offering will be underwritten bysponsors of Poliolefinas together with IFC. IFC last the sponsor and the Development Finance Corpo-year helped finance Petroqufmica Uniao, S.A., a ration of Ceylon.naphtha cracking and reforming project that will The Private Investment Company for Asia (PICA)supply ethylene as raw material to Poliolefinas. S.A. participated in IFC's commitment. Two Ceylonese

The IFC commitment included equity, loan and financial institutions and a Japanese company alsocontingency provision. provided substantial financial support.

Two United States institutions participated in IFC's Technical assistance is being provided by Bombaycommitment: Bamerical International Financial Cor- Dyeing and Manufacturing Co., Limited, of Bombay,poration, a subsidiary of Bank of America, N.T. & S.A.; India. Gherzi Eastern, Limited, a company jointlyand Manufacturers Hanover Trust Company. owned by Bombay Dyeing and Gherzi Textil Organi-

The financial plan was as follows: sation, of Switzerland, will serve as consultant dur-(US$ million) ing construction.

Share CapitalNational Distillers and Chemical

Corporation .................. 32 The financial plan was as follows:Petrobr6s Quimica, S.A-Petroquisa. 3.2 (US$ million)Unipar-Uniao de Industrias Share Capital

Petroquimicas, S.A . . .................. 2.7 A.Y.S. Gnanam and associates .3.131International Finance Corporation ... 2.3 11.4 Public share offering in Ceylon .0.819

International Finance Corporation . . . 0.750Loan Capital Mitsui and Company, Limited .0.336

International Finance Corporation . .. 5.0 Development Finance Corporation ofInvestbanco, Banco de Investimento Ceylon ..................... 0.168 5.204

do Brasil and the Banco BozzanoSimonsen de Investimento ....... 3.9 Loan Capital

Dutch and Japanese suppliers' credits . 3.7 Bank of Ceylon and theBank of America, New York ....... 2.5 Development Finance CorporationExport-import Bank of the of Ceylon ................... 6.132

United States ........ ........ 2.5 17.6 International Finance Corporation .. . 2.500 8.632TOTAL .29.0 TOTAL .13.836

(IFC's commitment also ncluded contingency commitments ot $1.1 million.)

18

~~~~~ :

_....S~i, 410l..

Production line at Celulosa Argentina, S.A.pulp and paper company.

CHILE IFC is receiving 15 per cent of Sagasca's shares in

$10,900,000 in Minera Sagasca, S.A., a consideration of its provision of loan capital. The,,2.5 million copper mining Industrial Bank of Japan, Limited, and The Long-Term$32.5 mililon copper mining Credit Bank of Japan, Limited, participated in IFC's

project. investment.The financial plan was as follows:

The Corporation joined Chilean, Japanese and (UTs million)

United States interests in financing Minera Sagasca, Share Capitala mining venture located east of the port of Iquique Continental Copper & Steelin northern Chile, to produce 24,000 metric tons a Industries, Inc ................. 1 500

year of fine copper equivalent in the form of copper Corporaci6n del Cobre ........... 1.000 2.500

cement concentrate.The project is expected to generate substantial for- Shareholders' Advances

eign exchange earnings for Chile and contribute to Industries, Inc ................. 4.875

the economy of the Iquique region through higher Corporaci6n del Cobre ........... 1.625

employment, development of infrastructure and crea- International Finance Corporation ... 1.260 7.760

tion of ancillary business activities. LoansSponsors of the company are Continental Copper Senior Loans:

& Steel Industries, Inc., of New York, a manufacturer Dowa Mining Company, Limited 3.000

of metal and rubber products; Corporaci6n del Cobre, International Finance Corporation. 2.000 5.000

the Chilean Government copper agency; and IFC. IFC's Junior Loans:commitment consists of loan and overrun provision. Dowa Mining Company, Limited . . 7.000

Dowa Mining Company, Limited, of Japan, which International Finance Corporation. . 6.740

provided part of Sagasca's loan capital, will purchase Continental Copper & Steelhalf of the mine's output and, at Sagasca's option, Industries, Inc .2.625up to all of the other half during the first six years Corporaci6n del Cobre .0.875 17.240

of operation. Dowa will purchase for itself and two TOTAL .32.500other Japanese companies. (IFC's commitment also included contingency commitments of $900,000.)

19

CHINA, REPUBLIC OF$4,218,750 in Asia Cement Corporation $3,000,000 in Oriental Chemical Fiber

for a $14.5 million expansion. Corporation, a new, $14.3Expansion of Asia Cement, the second largest million polyester staple

cement producer of Taiwan, will increase the com- fiber enterprise.pany's capacity from 900,000 to 1.7 million metric Oriental Chemical Fiber is being established bytons a year. The new capacity is needed to meet Asia Cement Corporation, in which IFC also investedgrowing domestic demand and maintain cement this year. Asia Cement is a member of the Far Easternexports, one of the country's important foreign Textile Group of companies, controlled by Mr. Y. Z.exchange earners. Hsu and associates.

Asia Cement is a member of the Far Eastern Tex- Oriental Chemical Fiber's annual output of 7,500tile Group of companies, of Taipei. metric tons of polyester staple fiber will substitute

Shanghai Commercial Bank Ltd., of Hong Kong, for synthetic fibers now imported and make China'sparticipated in IFC's commitment. textile industry less dependent on such imports.

The financial plan was as follows: The financial plan was as follows:(US$ million) (US$ million)

Share Capital Share CapitalInternational Finance Corporation ..... 1.22 Asia Cement Corporation ..... ...... 2.60Asia Cement Corporation employees and Y. Z. Hsu and associates .1.55 4.15

shareholders ................... 0.12 1.34Loan Capital

Loan Capital Senior Debt:Suppliers' credits ........ ......... 6.13 Suppliers' credits ....... ......... 4.31International Finance Corporation ..... 3.00 International Finance Corporation ... . 3.00Deferred customs duties ........... 2.12 Deferred import duties ............ 1.45Bank of Communications, Republic China Development Corporation . 0.56 9.32

of China.1.25 12.50 Subordinated Debt:Cash Generation .0.63 Asia Cement Corporation .......... 0.85TOTAL .14.47 TOTAL ......................... 14.32

COLOMBIA$1,741,159 in Enka de Colombia, S.A., companies in which IFC has invested-Corporaci6n

for a $10.2 million synthetic Financiera de Caldas, in Manizales, and Corpora-ci6n Financiera Nacional, in Medellmn-and Algemenefiber expansion program. Kunstzijde Unie N.V. Group (AKU) (now AKZO

The investment, IFC's second in Enka, is to help N.V.) of the Netherlands.finance a 70 per cent increase in productive capacity. The financial plan was as follows:

Enka is Colombia's largest and most diversified (U5$ million)synthetic fiber manufacturer and the nation's only Share Capitalnylon tire yarn and nylon tire fabric producer. The Algemene Kunstzijde Uniecompany also makes nylon textile yarn and polyester N NV. Group (AKU) .1.559textile yarn and staple. IFC's first investment in the Colombian shareholders . 0,846enterprise was made in 1966 to help finance the International Finance Corporation.. 0.641 3.046company's present facilities, now producing at capacity. Loan Capital

IFC's current commitment included loan, equity Kreditanstalt fuer Wiederaufbau .. 2.000and contingency provision. Societe Financiere Euro- International Finance Corporation . . . 1.000peenne-S.F.E., of France, participated in IFC's Suppliers' credits. . 1.000 4.000investment. Cash Generation 3.177

Partners in the project include five Colombian TOTAL . . .10.223textile firms; two Colombian development finance (FC's commntment also included a contingency commitment of approximately $100,000.)

20

CONGO, DEMOCRATIC REPUBLIC OF$1,045,425 in Pro-Hoteles, S.A., a $4.1 $752,758 in Societe Congolaise de

million hotel enterprise. Financement du Developpe-

A broad group of Colombian investors, two United ment, a new $11.0 millionStates organizations and IFC provided the financing industrial financing institution.for a new first class business and tourist hotel in Cali.

Over $1 million equivalent in equity is being sup- IC and the International Development Associa-

plied by Colombian investors-one-third of this by a Ion and the milion invlopment for

publicshare offering underwritten bytwo Colombian tion provided $5.75 million in loan and equity fordevelopmentfinancecompaniesthatlFChasinvested a new private financing institution established toin: Corporaci6n Financiera Colombiana and Corpo- further industrial expansion in the Congo.raci6n Financiera del Valle. Societe Congolaise de Financement du Devel-

The hotel will employ approximately 300 Colom- oppement (Socofide) is sponsored by Government,bians andl wis expeceloy eapprnxim$50 000 foreigno- commercial, industrial and financial organizations

change annually. in the Congo and by the following 13 foreign finan-

The hotel is scheduled for completion in time for cial Institutions:the Pan American Games, to be held in Cali in July1971. It will help relieve the shortage of accommo- Belgium Banca Nazionale del Lavorodation in the city and will be a link in a nationwide Banque de Bruxelles, S.A.

chain of first class hotels being developed to en- Banque Lambert Japancourage tourism. Societe Gen&rale de The Bank of Tokyo, Ltd.

The IFC commitment included loan, equity and France Industrial Bank of

contingency provision. The bulk of the Colombian Banque Francaise du The Long-Term Credit Bankequity financing was provided by a Colombian in- Commerce Exterieur of Japan, Limitedvestor group including two Government sponsored Caisse Centrale deinstitutions, the Organizing Committee for the Pan Cooperation Economique United StatesAmerican Games and the Instituto de Fomento Indus- Germany Morgan Guarantytrial; the two private development finance com- Commerzbank, AG International Banking

panies; a group of Cali businessmen and Colombian Italy Corporationpanies; a group oCaibsnsmnndolban Banca Commerciale Italiana Philadelphia Internationalcorporations including Aerovfas Nacionales de Co- Croup Investment Corporationlombia (Avianca).

Intercontinental Hotels Corporation, a Pan Ameri-can World Airways subsidiary, is the largest single Socofide will invest primarily in manufacturing

shareholder with 22.6 per cent of the equity. Inter- and processing industries, but commercially ori-

continental Hotels will assist in the construction of ented agriculture, forestry, fishing, transport andthe hotel and will operate it. tourism projects are also eligible for assistance.

Loans were provided by Colombian and U.S. Socofide may provide medium and long-term loans,

institutions. make equity investments, underwrite securities and

The financial plan was as follows: provide guarantees.(US$ million)

Share CapitalColombian investor group ........... 0.75Intercontinental Hotels Corporation. ... 0.38 The financial plan was as follows:Public share offering in Colombia ..... 0.34 (US$ million)International Finance Corporation ..... 0.21 1.68 Share Capital

Loan Capital Congolese commercial banks and privateInstituto de Fomento Industrial, investors ...................... 1.20

Corporaci6n Financiera Colombiana, Foreign financial institutions ......... 1.05Corporaci6n Financiera del Valle 0.82 International Finance Corporation. 0.75

International Finance Corporation ..... 0.80 Congolese Government .. . ....... 0.50Organizing Committee for the Pan National Bank of the Congo .0.50 4.00

American Games ........ ........ 0.27 Loan CapitalCorporaci6n Financiera Colombiana, International Development Association . . 5.00

Corporaci6n Financiera del Valle ... 0.25 Subordinated Congolese GovernmentExport-Import Bank of the United States 0.25 2.39 advance ....................... 2.00 7.00

TOTAL .4.07 TOTAL........................ 11.00

21

ETHIOPIA a subsidiary of Girard Trust Bank of Philadelphia;$618,000 in Cotton Company of Credit Chimique, of France; and Atlantic Bank of$618,000 in Cotton Company of New York, a subsidiary of the National Bank of Greece.

Ethiopia, S.C., for a $5.0 million Additional equity financing was provided by Alum-expansion of textile production. inium de Grece shareholders, including: Compagnie

Pechiney, S.A., of France, the majority shareholderA second investment in Cotton Company of and a major world aluminum producer; Societe Fran-

Ethiopia was made by IFC and Ethiopian and Japa- caise pour le Developpement de l'Aluminium ennese investors to help finance a new expansion of Grece, S.A., of France; the Hellenic Industrial Develop-the company, the largest integrated textile mill in ment Bank, of Greece; and Ugine Kuhlmann, of France.the country. IFC's earlier investment, in 1964, was The National Bank of Greece has an indirect interestpart of a program to modernize the company's facil- through holdings in Societe Francaise pour le Develop-ities and double its then production. pement de I'Aluminium en Grece, S.A.

The Arab African Bank of the United Arab Republic The financial plan was as follows:participated in IFC's commitment. (US$ million)

The financial plan for the current project was as Share Capitalfollows: (US$ million) International Finance Corporation ..... 4.75

Existing shareholders ...... ........ 2.00 6.75Share Capital

International Finance Corporation . .. 0.168 Loan CapitalFuji Spinning Company .......... 0.056 0.224 Suppliers' credits .14.39

Hellenic Industrial Development Bank . 4.00Loan Capital International Finance Corporation . 3.50 21.89

Suppliers' credits ....... ........ 1.649International Finance Corporation . . 0.450 Cash Generation .71Commercial Bank of Ethiopia ...... 0.400 2.499 TOTAL .. 29.35

Cash Generation .2.306 (IFC's commitment also included a contingency commitment of $350,000.)

TOTAL .5.029 INDIA$3,000,000 in Zuari Agro Chemicals,

GREECE Limited, a $75.4 million$8,600,000 in a $29.4 million expansion fertilizer project.

of Aluminium de Grece, A second investment was made by IFC during Fis-Societe Anonyme Industrielle cal 1970 in the Zuari Agro Chemicals fertilizer project,et Commerciale. raising its total commitment to $18.94 million.

The Mitsui Bank, Limited, of Japan participated inIFC and French and Greek interests financed an the new IFC commitment.

expansion of Aluminium de Grece, Greece's largest The plant is being built at Goa in southwest Indiaindustrial enterprise and only present producer of by Toyo Engineering Corporation, of Japan. Zuarialumina and aluminum. Agro Chemicals will have an ammonia capacity of

The project is expected to lower unit production 220,000 metric tons a year which it will use to pro-costs and strengthen the company's position as one duce 340,000 metric tons of prilled urea. Sixty thou-of Europe's leading aluminum producers. Aluminium sand tons of the prilled urea will be used in manu-de Grece sells most of its production abroad and it facturing 150,000 metric tons of granulated compoundis anticipated that the project will provide Greece fertilizer.with substantial foreign exchange earnings. The project was launched last year under the spon-

The financing will be used to increase the com- sorship of United States Steel Corporation, Pitts-pany's alumina capacity from 250,000 to 475,000 burgh, and the Birla Group, one of the largest indus-metric tons and aluminum capacity from 78,000 to trial organizations in India. Additional financing was90,000 metric tons a year, expand dock facilities, and supplied by a public share offering underwritten byprovide additional permanent working capital. a consortium of Indian financial institutions and

IFC's commitment consisted of a loan, equity, and private brokers which was heavily oversubscribed;contingency provision. European and United States the United States Agency for International Develop-financial institutions participated in the Corpora- ment; a group of United States institutional investorstion's investment-Euramfin Holdings Societe Finan- headed by the Bank of America, New York; Armourciere, S.A., an affiliate of Istituto Mobiliare Italiano, and Company, Chicago; and First Chicago Inter-of Italy; Girard International Investment Corporation, national Corporation.

22 Road construction in Ethiopia. This kind ofwork, helped by the World Bank Group, preparesthe way for buildup of the private industrialsector that IFC assists.

}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W ............''e

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KENYA the project. IFC correspondingly reduced its

$14,651,799 in Panafrican Paper Mills commitment.Participating in IFC's commitment were National

(E.A.) Limited, a $35.0 and Grindlays Finance and Development Corpora-

million pulp and tion, Limited, Barclays Bank D.C.O. and its subsidiary

paper mill. Barclays Overseas Development Corporation Limited,all of the United Kingdom; the First National City

Panafrican Paper Mills will be East Africa's first Bank, of the United States; and the Arab Africanintegrated pulp and paper producer. It will be located Bank, of the United Arab Republic.at Broderick Falls, in Western Kenya.

Using local raw materials, it will produce, initially, The financial plan as amended was:some 45,000 tons of paper a year, primarily for domes- (US$ million)

tic consumption. Substitution of local production Share Capitalfor imports is expected to result in substantial annual International Finance Corporation ..... 3.14net foreign exchange savings. Orient Paper Mills, Limited ..... ..... 3.00

ane aforeign exchager Mills will employsome1300 East African Development Bank ....... 0.50Panafrican Paper Mills will employ some 1,300 Government of Kenya of Kenya .............. 2.31

people. An additional 1,000 employees are expected Development Finance Companyto be employed by the Forest Department of the of Kenya Limited .......... 0.29 9.24Government of Kenya in replanting pulpwood treesand caring for immature trees. Income notes

The mill is to utilize forest plantations about 90 ymiles to the southeast of Broderick Falls during the Loan Capitalearly years of operation. New pulpwood plantations Senior Loan:are being established at Turbo some 30 miles from Suppliers' credits .......... ...... 8.98are bing esitalished atsTurbo, so 3 mles from International Finance Corporation ... . 5.99

the mill site, with the assistance of a loan provided African Development Bank ......... 1.45*

by the World Bank. East African Development Bank ...... 0.50Sponsors of Panafrican Paper Mills are Orient Paper Development Finance Company

Mills, Limited, an Indian company associated with of Kenya Limited .......... 0.29 17.21the Birla Group, and the Government of Kenya. Convertible Loan:

Financing was also provided by the African Devel- International Finance Corporation .. .. 3.14

opment Bank (AfDB) and the East African Develop- East African Development Bank ...... 0.50ment Bank, which were investing in a project with Development Finance CompanyIFC for the first time, and the Development Finance of Kenya Limited ....... ........ 0.29 3.93

Company of Kenya Limited. Initially IFC's commit- TOTAL .. 35.00ment included AfDB's participation. After the closement inclued AfDB'sparticipaton. Afterthe close (IFC's commitment aiso inciuded a contingency commitnment of $933.000.)

of the fiscal year, AfDB agreed to invest directly in Amount initially inciuded in IFc's commitment.

KOREA$5,000,000 in Atlas Paper Company,

Limited, an $11 millionintegrated paper mill.

The Atlas Paper Mill is designed to de-ink waste The financial plan was as follows:paper and process the resulting pulp to produce (us$ million)

37,000 metric tons a year of newsprint and writing Share Capitaland printing paper. Hyundai Group ........... . .. . 3.0

The new company is sponsored by the Hyundai International Finance Corporation ..... 0.5 3.5

Group, which is active in construction, cement and Loan Capitalbuilding materials production, automobile, bus and Senior Debt:truck assembly, and trading and shipping operations. International Finance Corporation ... . 4.5

The Private Investment Company for Asia (PICA) Suppliers' credits ................ 1.9 6.4

S.A. participated in IFC's commitment. Honshu Paper Subordinated Debt:Manufacturing Company, Limited, of Japan, is pro- Hyundai Group .. 1.1viding engineering services and employee training. TOTAL .. 11.0

24

_e m~~ - hS

MALAYSIA offering underwritten by Malaysian Industrial Devel-

$1,499,900 in India-Malaysia Textiles, opment Finance Berhad, and the Private Investment$1,499,90 .nia al i TCompany for Asia (PICA) S.A. Malaysian financial

Berhad, a $5.9 million textile institutions provided loans.

enterprise.

The Corporation joined with Malaysian and Indian The financial plan included the following com-investors to establish India-Malaysia Textiles, a new mitments:venture in West Malaysia. The company will be one (US$ million)

of the largest fabric manufacturers in Malaysia with Share Capitalan integrated mill employing 900 and capable of Public share offering in Malaysia ...... 1.139producing 7.3 million square yards of suiting, shirt- Birla Cotton Spinning and Weavinging and dress material annually. Mills, Limited ................... 1.111

The project is sponsored by Birla Cotton Spinning Mailis Amanah Finat .............. 0.278and Weaving Mills, Ltd., a textile firm in the Birla International Finance Corporation. 0.250 2.778Group of companies in India. A substantial part of Loan Capitalthe equipment is being obtained from India, thereby International Finance Corporation ..... 1.250benefiting that country as well. Malaysian Industrial Development

Equity commitments were made by Birla, a Malay- Finance Berhad ................. 1.062sian investment institution (Majlis Amanah Ra'ayat) Malaysian bank consortium andand IFC. The financial plan also provided for a share TOTAL. ................ .85.943

MEXICO Previously the Corporation participated in under-

$1,500,000 in Minera del Norte, S.A., writing four Fundidora share issues, and in a com-$1,500,000 bined underwriting and private placement of con-

a $4.6 million mining project. vertible debentures-helping the company raise

An investment in a new iron ore mining project approximately $44 million equivalent in all.

intended to assure an adequate ore supply forMexico's largest privately owned steel company was The financial plan for the current assistance wasmade by the Corporation. as follows:

The IFC commitment was to Minera del Norte, Loan Capital (US$ million)

owned by Compania Fundidora de Fierro y Acero de International Finance Corporation ........ ..... 1.5Monterrey, S.A., and four of its subsidiaries. Minera Lease Purchase Arrangementsdel Norte will supply iron ore to Fundidora, which Arrendadora Banamex, S.A. de C.V .............. 2.4has increased steel ingot capacity from 300,000 metrictons annually in 1962 to about 850,000 metric tons Cash Generation ....................... 0.7

at present. ~~~~~~~~~~~~~TO TAL ........................ . . . . 4.6at present. TOTAL.4.6

25

PHILIPPINES$1,095,450 in Mariwasa Manufacturing, $2,214,284 in Paper Industries

Incorporated, for a $4.1 Corporation of themillion expansion of Philippines, for a $68.6ceramic tile output. million pulp and paper

IFC and Philippine sources joined to provide most enterprise.of the financing needed to expand production of a Philippine and United States investors and IFC

Philippine glazed ceramic floor and wall tile manu- joined to finance the addition of a pulp and paper

facturer. mill to a Philippine lumber company-making it

Mariwasa is a young, rapidly growing company Southeast Asia's first integrated forest products

established by the Coseteng family and a number complex.of other Filipino businessmen. The project will ex- Most of the equity for Paper Industries Corpora-

pand Mariwasa's capacity 75 per cent to 16.4 million tion of the Philippines (PICOP) is being provided

square feet of glazed ceramic tile per year. by Philippine investors-60 per cent of it through a

The increased output is expected to contribute to public share offering.

the Philippines' foreign exchange earnings and help PICOP and its wholly-owned subsidiary, Bislig Bay

reduce the country's dependence on traditional Lumber Company, Incorporated, are currently en-

agricultural exports. gaged in logging, sawn lumber, plywood and veneer

Part of the equity was supplied through a public operations in Surigao del Sur, on the southern island

share offering. of Mindanao. The project will create some 1,200 new

The Private Investment Company for Asia (PICA) jobs, add annual productive capacity of 150,500 metric

S.A. participated in IFC's investment. tons of newsprint, linerboard and corrugating me-

At the time of IFC's commitment the project's dium, and is expected to result in net foreign

financial plan, later altered by an exchange rate exchange savings of $15 million a year by substitut-

change, was as follows: ing local production for imports.(US$ million) Sponsors of the project are the Soriano Croup of

Share Capital the Philippines, which made an equity investmentCommon Shares: through one of its companies, San Miguel Corpora-

Coseteng family and associates ...... 0.342 tion; and the International Paper Company, a United

Preferred Shares: States pulp and paper producer.International Finance Corporation ... . 0.512 IFC's investment included an equity commitmentPrivate Development Corporation and a standby commitment.

of the Philippines .............. 0.255 The public sale of shares was underwritten, withPhilippine American Life Insurance t

Company .................... 0.255 the help of IFC, by a group of Philippine institutionsPublic share offering in the Philippines 0.034 1.398 headed by Bancom Development Corporation and

including the Private Development Corporation ofLoan Capital the Philippines, CCP Securities Corporation, and

Private Development Corporationof the Philippines ................ 1 300 House of Investments, Incorporated. The offering

International Finance Corporation ..... 0.769 was successful and in order to accommodate a num-Philippine commercial banks . ........ 0.366 2.435 ber of small Philippine investors, IFC made part of

its shares available to them.Cash Generation .0.220 Additional funds were provided by a United States

IOTAL.4.053 bank, Japanese suppliers, and internal cash genera-

(IFC's commitment was subsequently reduced by an exchange rate change to $1.1 tion. Approximately $7 million equivalent had alreadybeen spent on the project by PICOP.

26

The financial plan, subsequently altered by an TURKEYexchange rate change, was as follows: $11,583,330 in Anadolu Cam Sanayii,

Share Capital (US$ million) A.S., a $33.4 million flatPublic share offering in the Philippines 6.03 glass and glass containerInternational Paper Company ......... 1.54 enterpriseSan Miguel Corporation ...... ...... 1.28International Finance Corporation ..... 1.28 10.13 Over a thousand Turkish glass retailers and a con-

Loan Capital sortium of Turkish investors provided the bulk of theSuppliers' credits ........ ......... 36.74 share capital for Anadolu Cam Sanayii (ACS), whichManufacturers Hanover Trust Company. 3.00 39.74 will build a glass plant near Mersin, on the southern

Cash Generation .11.73 coast of Turkey. The plant will have an annual capacity

Previous Investment ------ 7.00 of 53,000 metric tons of Pittsburgh-type flat glass,TOTAL. 68.60 50,000 metric tons of clear glass containers and 30,000

*___ metric tons of amber glass containers.(IFC's commitment, including a standby commitment of $2.18 million, totaled $3.46million-subsequently reduced by an exchange rate change to $2.21 million.) The ACS project IS Intended to meet growing

demand for glass in Turkey and export part of its pro-duction. It will employ over 1,100 workers and is

$4,500,000 of an $11 million debenture expected to result in substantial foreign exchange

issue for expansion of savings.Glaverbel, S.A., of Belgium, the world's largest pro-Philippine Long Distance ducer of drawn flat glass, is one of the sponsors of ACS.

Telephone Company. Turkish investors are supplying 80 per cent ofACS's share capital, making it one of the most widely

The Corporation helped finance a two-phase held enterprises in the country. The sponsors includeexpansion program designed to keep up with the the individual glass retailers and a consortium of 27rapidly growing demand for telephone service in the Turkish corporate and individual sponsors.Philippines. IFC's commitment consists of loan, equity and con-

IFC purchased $4.5 million of a Philippine Long tingency provision. Societe Generale de Banque, Bel-Distance Telephone Company (PLDT) $11 million gium's largest bank, is participating in a substantialdebenture issue. The balance of the debenture issue, part of IFC's loan.which has detachable warrants to purchase common A bond issue in Turkey, a bank loan and deferredstock,was sold to institutional investors in the United customs duties completed the financing.States in a private placement arranged by Loeb, Verlica-Momignies, S.A., the largest Belgian pro-Rhoades & Co., of New York, and House of Invest- ducer of glass containers, will provide technical andments, Incorporated, of the Philippines. operational assistance.

PLDT accounts for 75 per cent of the telephones inthe Philippines. It has expanded rapidly in recentyears to meet the growing demand for telecom-munications facilities. The first phase of its expansion The financial plan was as follows:program, completed in 1967, increased the number (US$ million)of telephones serviced by PLDT from 111,000 to Share Capital154,000, converted several manual exchanges to auto- Turkish sponsors .8.666

T. urkish glass retailers .2.000matic switching, and substantially expanded long dis- glaverel, ............. 2.000

tance fcilitie. The econd pase wil increse the Glaverbel, S.A...........1.333tance facilities. The second phase will increase the International Finance Corporation ... . 1.333 13.332number of telephones to 405,000 by 1972.

Loan CapitalInternational Finance Corporation . . . 10.000Turkish bond issue ............... 7.334Deferred customs duties ........... 1.742Bank loan .......... ..... 1.000 20.076TOTAL . ........... 33.408

(IFC's commitment included a contingency commitment of $250,000)

27

YUGOSLAVIA$3,167,334 in Viking Kagit ve Seluloz, $2,000,000 in International Investment

A.S., a $9.2 million paper Corporation for Yugoslavia,company. a $12.0 million investment

IFC joined Turkish and Danish sponsors to establish company.a new Turkish paper manufacturing company.

The mill is to have an annual capacity of 13,500 A pioneering type of investment company, whichmetric tons of quality wrapping paper and 5,000 tons assists private businesses to invest in joint industrial,of mechanical pulp. The project is expected to result agricultural and tourism and other ventures in Yugo-in netforeign exchange savings of approximately $1.6 slavia, was organized and sponsored by a group ofmillion annually. 15 Yugoslav banks and IFC during the fiscal year.

The IFC commitment consisted of equity, loan and Thirty-nine European, Japanese and United Statescontingency provision. financial institutions subscribed to the new com-

Viking's sponsors in addition to IFC include two pany's shares.Turkish companies, Denmark's largest papercompany International Investment Corporation for Yugo-and a Danish institution for financing projects in slavia (IICY), capitalized at $12.0 million, was estab-developing countries. A Turkish industrial investment lished to bring together foreign private and Yugoslavand credit bank provided a loan. enterprises to facilitate Yugoslavia's access to modern

The financial plan was as follows: technology and management methods. It will help toorganize new enterprises, or expand existing ones,

Share Capital (US$ million) including promotional and pilot operations; helpKarteks Ticaret ve Sanayii, A.S., and identify and select projects; bring partners together;

Otomobilcilik ve Ticaret, A.S ........ 1.507 and assist in financial planning and arrangements.De Forenede Papirfabrikker .......... 1.163 IICY will also invest its own capital and borrowIndustrialization Fund for Developing funds to make loans to clients, provide advisory and

Countries ..................... 1.033 consulting services, underwrite capital requirements,International Finance Corporation ..... 0.603 4.306 issue standbys and provide guarantees.

Loan Capital The investment company can increase its oper-International Finance Corporation ..... 2.500 ating capital by borrowing and can revolve its fundsSinai Yatirim ve Kredi Bankasi A.O ... . 1.754 by selling participations in its own investments inDeferred customs duties ............ 0.687 4.941 the joint ventures it promotes.TOTAL .. 9.247 IFC invested $2 million and the 15 Yugoslav finan-

(IFCscommitmentalsoincludedacontingencycommitmentotapproximateiy$64,000.) cial institutions invested $3 million.

Production at Cotton Company of Ethiopia.

_ 1, Am- . . 1

The Yugoslav banks sponsoring IICY are: $8,000,000 in Zavodi Crvena Zastava/Beogradska udruzena banka, Kreditna banka in hranilnica,

Beograd Ljubljana Fiat S.p.A., for a $105.8Investiciona banka, Sarajevo Kreditna banka, Sarajevo million expansion ofInvesticiona banka, TitogradInvesticiono komercijalna Kreditna banka, Zagreb automobile production.

banka, Split Kreditna banka, ZenicaJugoslavenska banka za Privredna banka u The World Bank and IFC committed $18 million

spoljnu trgovinu, Beograd Beogradu, Beograd in loan and equity to a project to double produc-Jugoslavenska investiciona Privredna banka, Novi Sad tion of Yugoslavia's largest and only integrated auto-banka, BeogradKomercijalno investiciona Privredna banka, Zagreb mobile manufacturer.

banka, Skopje Rijeka banka, Rijeka World Bank Group financing is part of a $105.8million equivalent expansion to increase Zavodi

Thirty-nine financial institutions in nine countries also Crvena Zastava (ZCZ) output from 96,000 to approx-became shareholders: imately 193,000 vehicles a year. The increased capa-

city will create more than 8,000 additional jobs.Austria Japan In addition to the World Bank Group, financingCreditanstalt-Bankverein The Bank of Tokyo, Ltd. is being provided by Fiat S.p.A., of Italy; General-Osterreichische The Industrial Bank of export, a major Yugoslav importing and exporting

Landerbank AG Japan, Limited cThe Long-Term Credit Bank company; the Yugoslav investment bank, Jugosla-

France of Japan, Limited venska investiciona banka (YIB); Yugoslav bank loans;Banque Francaise du Netherlands and suppliers' credits.

Commerce Extdrieur Algemene Bank Nederland The World Bank provided a $10 million loan, madeBanque Nationale de Paris N.V. through YIB. IFC is investing $8 million. The project

Eureenne lIndustrielle Amsterdam-Rotterdam is a joint venture between Fiat and ZCZ, which haset Financiere Bank M &V e had cooperative arrangements with the Italian manu-

Credit Lyonnais Nederlandsche Credietbank facturer for the last 15 years and produces vehicles

SPcibas International N.V. of Fiat design under license.Nederlandsche Two United States financial institutions partici-

Germany N V Slavenburg's Bank pated in IFC's commitment-Girard InternationalBank fuer Gemeinwirtschaft F. Van Lanschot Bankiers Investment Corporation, a subsidiary of Girard TrustCommerzbank AG Bank of Philadelphia, and Franklin InternationalDeutsche Bank AG Switzerland Corporation, a subsidiary of Franklin National Bank,Dresdner Bank AG Swiss Bank Corporation ofeork.Westdeutsche Landesbank United Kingdom of New York.

Girozentrale, for aUme ngoconsortium of German Bank of London and The financial plan for the expansion of ZavodiGirozentralen South America, Limited Crvena Zastava was as follows:Barclays Bank, Limited

Italy Lazard Brothers & Co., (uS$ million)Banca Commerciale Italiana Limited Equity

Group United States Fiat S.p.A ........................ 12.0Banca Nazionale del Lavoro Chase International Generalexport .................... 8.8Banco di Napoli Investment Corporation International Finance Corporation ..... 8.0Banco di Roma Girard International Jugoslavenska investiciona banka ...... 2.4 31.2Credito Italiano Holding, S.A. Investment CorporationEfibanca, Ente Finanziaro Marine Midland Overseas Loan Capital

Interbancario Corporation Suppliers' credits ...... ........... 12.5Istituto Mobiliare Italiano Philadelphia International World Bank (through the YugoslavMediobanca Investment Corporation investment bank) ................ 10.0

Yugoslav bank loans ...... ......... 2.4Jugoslavenska investiciona banka ...... 2.0Privredna banka u Beogradu .... ..... 0.8 27.7

Cash Generation . . 46.9TOTAL . .105.8

29

REGIONALorganizations have in the past joined in assisting bus-

Latin America inesses in Latin America.The loan to ADELA was IFC's first commitment to

$10,000,000 loan to ADELA Investment adevelopmentcompanyoperating on aregional scale.Company, S.A., for IFC's financial collaboration with regional invest-

Company, S.A., for ment organizations such as ADELA is intended to

expansion of ADELA's increase the amount of long-term capital available

private enterprise for their investments, and, through their activities,

investments in to make IFC funds available to a larger number andrange of enterprises in developing countries thanLatin America. would otherwise be possible.

ADELA has offices in 11 Latin American countries.ADELA is an international privately financed com- Its operations have increased rapidly in the past few

pany that gives financial, technical and promotional years. ADELA has approved long-term investmentshelp to productive private enterprise in developing in more than 100 Latin American enterprises.nations in the Western Hemisphere. It is primarily an IFC's loan is intended to help ADELA continueinvestor and promoter of new enterprises. Its objec- expansion of its long-term investments in Latintives and operations are similar to IFC's and the two American enterprises.

IFC also made investments resulting from holdings acquired in previous years' commitments in the followingcountries:

COLOMBIA NIGERIA* A $112,182 additional investment in Corporaci6n * A $3,878 investment in Arewa Textiles, LimitedFinanciera de Caldas, taking up IFC's share of a new in connection with the conversion into equity ofstock offering to stockholders. debentures held by IFC.* The acceptance in share form of a $16,806 divi-dend from Enka de Colombia, S.A., augmenting TUNISIAthe company's retained earnings to help finance * A second commitment, of $628,572, in Societean expansion program. Nationale d'lnvestissement as IFC's pro rata sub-

scription to a new offering planned for late in 1970HONDURAS that will double the development finance com-

* A second equity commitment of $37,500 in Com- pany's share capital and help it expand its invest-panfa Pino Celulosa de Centro America, S.A. as part ment program.of $500,000 in new financing to permit the com-pany to continue its studies and negotiations aimedat establishing a large-scale pulp, paper and lum-ber operation in the Honduras Olancho forest region.

30

Appendices

Financial Statements PageA Balance Sheet ............................... .... . 32B Statement of Income and Expenses .......... .. . .. . .. . .. . .. . 33B Statement of Changes in Reserve Against Losses .................. . 33C Statement of Operational Investments .......... . . .. . . .. . . .. . . 34D Notes to Financial Statements ............ .. .. .. ... .. .. .. . 41

Opinion of Independent Auditor ......... . ............... . . 42

Other AppendicesE Statement of Subscriptions to Capital Stock and Voting Power ........... . 43F Governors and Alternates ................ ... ... ... ... .. . 44G Directors and Alternates and Their Voting Power ....... . . . . . . . . . . . . 46H Officers and Department Directors ..................... .Inside Cover

31

Balance Sheet Appendix A

June 30, 1970Expressed in United States Currency-See Notes to Financial Statements, Appendix D

1970 1969

AssetsDUE FROM BANKS .......... .. . .. .. . .. . .. .. . .. . .. . $ 508,113 $ 715,967

INVESTMENTSObligations of United States Government and its instrumentalities

(At cost or amortized cost; face amount Nil-1970,$27,000,000-1969) ............................ . $ - 26,085,900

Time deposits maturing within six months-United States dollars ..... . . 10,000,000 4,000,000Accrued interest .......... .. . .. .. . .. . .. .. . .. .. . . 51,587 484,279

10,051,587 30,570,179

EFFECTIVE LOANS AND EQUITY INVESTMENTS HELD BY CORPORATION(At cost) (See Appendix C)

(Including undisbursed balance $41,997,309-1970,$33,500,575-1969)

Loans ..................................... . $125,634,113 93,014,013Equity .............. .. ... .. ... .. ... .. ... .. . 83,376,758 59,677,835

209,010,871 152,691,848

ACCRUED INCOME ON LOANS AND UNDERWRITING COMMITMENTS-Note B . . 2,581,654 1,571,340

RECEIVABLE FROM INTERNATIONAL BANK FOR RECONSTRUCTION ANDDEVELOPMENT ................................ . 182,500,000 100,000,000

RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE LOANS ANDEQUITY INVESTMENTS AGREED TO BE SOLD-Note B

(Including undisbursed balance $7,058,576-1970,$22,996,218-1969) ......... . . .. . . . .. . . . .. . . . .. . 10,747,249 26,783,146

OTHER ASSETS ........... .. .. .. .. . . ............ . 271,193 176,723

TOTAL ............. .. .. ... ............... . $415,670,667 $312,509,203

Liabilities, Reserve and CapitalLIABILITIES

Accounts payable and other liabilities ....... . . . . . . . . . . . . . . $ 849,446 $ 822,453Undisbursed balance of effective loans and equity investment

agreements (See Appendix C)Held by Corporation ............................ . $ 41,997,309 33,500,575Agreed to be sold ......... .. . .. . . .. . .. . .. . . .. . . 7,058,576 22,996,218

49,055,885 56,496,793

Loan from International Bank for Reconstruction andDevelopmentUnwithdrawn ........... .. .. .. . .. .. .. .. . .. .. . $182,500,000 100,000,000Withdrawn and outstanding ........ . . . . . . . . . . . . . . . . . 17,500,000 _

200,000,000 100,000,000

RESERVE AGAINST LOSSES (See Appendix B)-Note C ... ........... . 58,811,336 48,614,957

CAPITAL

Capital stockAuthorized 110,000 shares of $1,000 par value eachSubscribed 106,954 shares-1970, 106,540-1969 ...... . . . . . . . 106,954,000 106,540,000Payment on account of pending subscription ...... . . . . . . . . . . - 35,000

TOTAL ............... ... ... ... ... ... ... .. . $415,670,667 $312,509,203

32

Statement of Income and Expenses Appendix B

For the Fiscal Years Ended June 30, 1970 and June 30, 1969Expressed in United States Currency-See Notes to Financial Statements, Appendix D

July 1-June 301969/70 1968/69

IncomeIncome from obligations of United States Governmentand its instrumentalities and time deposits ....... . . . . . . . . . . . . . . . . . . . . . $ 1,228,935 $ 1,864,865

Income from loans, equity investments and standby and underwritingcommitments:

Fixed interest .......................................... . 6,243,652 4,780,733Additional interest ........... . .. . .. . .. . .. . .. .. . .. . .. . .. . . . 120,772 370,641Commitment charges .......... .. . .. . .. . . .. . .. .. . . .. . .. . .. . . 671,668 410,212Dividends ............................................ . 6,776,549 4,394,139Commissions ............ .. .. .. .. . .. .. .. .. .. .. .. .. .. .. . . 335,686 154,287

Other income ............................................ . 11,110 5,394

GROSS INCOME .......... .. .. . .. . .. . .. . .. . .. .. . .. . .. . . . $15,388,372 $11,980,271

ExpensesAdministrative expenses:

Personal services ........... .. . .. .. . .. .. . .. .. .. . .. .. . .. . . . $ 3,068,813 $ 2,408,904Contributions to staff benefits ......... . . . . . . . . . . . . . .. . . . . . . . . . . 480,994 369,664Fees and compensation ..................................... . 256,078 120,669Representation ........... .. .. .. . .. .. . .. .. .. .. . .. .. .. . .. . 40,845 42,313Travel .............................................. . 712,424 619,441Supplies and material .......... . . .. . .. . . .. . . .. . . .. . .. . . . .. . 34,250 33,335Office occupancy ........... .. . .. .. . .. .. . .. .. .. . .. .. . .. .. . 342,334 222,591Communication services ......... .. . . . .. . . . . .. . . .. . . . .. . . . .. . 134,834 124,242Furniture and equipment .......... . . . .. . . .. . . . .. . .. . . . .. . . .. . 131,000 79,770Books and library services ......... . .. . . . . .. . . . . .. . . . . .. . . . . . . 31,000 37,238Printing ............................................. . 97,334 61,555Insurance ............................................ . 19,000 17,532Other expenses ........... .. .. .. . .. .. . .. .. .. .. . .. .. .. . .. . 11,382 7,562

Total administrative expenses ........ . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,360,288 $ 4,144,816

Charges on borrowings ........... . .. . .. . .. . .. . .. .. . .. . .. . .. . . . 840,002 375,000

GROSS EXPENSES .......... .. . .. . .. . .. . . .. .. . . .. . .. . .. . . $ 6,200,290 $ 4,519,816

Net Income-Allocated to Reserve Against Losses-Note C ...... . . . . . . . . . . . . . . . . $ 9,188,082 $ 7,460,455

Statement of Changes inReserve Against LossesFor the Fiscal Years Ended June 30, 1970 and June 30, 1969Expressed in United States Currency-See Notes to Financial Statements, Appendix D

July 1-June 301969/70 1968/69

Balance Beginning of Period ......... . . . . . . . .. . . . . . . . .. . . . . . . . . $48,614,957 $40,936,366

Additions and Deductions

Net income-Note C ........... .. . .. .. . .. .. . .. .. .. . .. . .. .. . . . 9,188,082 7,460,455Net gains on sales and other dispositions of loans and equity investments ..... . . . . . . . . 1,008,297 229,296Net other losses ............ .. .. .. .. . .. .. .. .. .. .. .. .. .. .. . . - (11,160)

Balance End of Period .......... .. . .. . .. . . .. . .. .. . .. . . .. . .. . . $58,811,336 $48,614,957

33

Statement of Operational Investments Appendix C

June 30, 1970Expressed in United States Currency-See Notes to Financial Statements, Appendix D

PrincipalOriginal repayments Investmenfts held by the Corporation

commitments to the Loans and Cancellations,Fiscal years net of Corporation equity sold terminations Total loans

COUNTRY in which exchange and or agreed to and and equityand Obligor Type of business commitments were made adjustments (I) redemptions be sold (2) (3) write-offs Loans Equity (at cost)

ArgentinaAcindar Industria Argentina de Aceros, S.A ........ . Steel products 1960 $ 3,660,000 $ 2,525,000 $ 725,000 $ - $ 410,000 $ - $ 410,000

*Papelera Rio Parana, S.A .P.u.l. . . P uip and paper 1960 3,000,000 - - 3,000,000 - -Fibrica Argentina de Engranajes, S.A.I.C . ...... . Automotive transmissions 1961 1,500,000 - 275,000 - 1,225,000 - 1,225,000

and gearsVPasa, Petroquimica Argentina, S.A.I.C ........... . Petrochemicals 1962 3,050,000 - 305,000 2,745,000 - -Celulosa Argentina, S.A ... . .... .. . ...... Pulp and paper 1965 2,500,000 820,000 250,000 - 1,430,000 - 1,430,000Daimine Siderca, S.A .......... . Steel products 1969 3,000,000 - 2,250,000 - 750,000 - 750,000Editorial Codex Sociedad Anonima ............ . Printing and publishing 1969 7,000.000 - 2,883,000 - 2,517,000 1,600,000 4,117,000

TOTAL 23,710,000 3,345,000 6,688,000 5,745,000 6,332,000 1,600,000 7,932,000Australia*Duncan's Holdings, Ltd ................. . Lumber and mill products 1958 660,000 660,000 - - - - -*Rubbertex (Australia) Proprietary, Ltd.(4) ..... . . . . . Rubber products 1959, 1960 315,000 42,750 272,250

TOTAL 975,000 702,750 272,250 - - - -

Brazil*Siemens do Brasil Cia. de Eletricidade . . Electrical equipment 1957 2,000,000 140,000 860,000 1,000,000"Olinkraft, S.A. Celulose e Papel ....... . . . . . . . Pulp and paper 1958 1,200,000 - 957,000 243,000 - -D.L.R. Plasticos do Brasil, S.A . ......... . Automotive parts 1958 450,000 250,000 - - 200,000 - 200,000

*Willys.Overland do Brasil, S.A. Ind6stria e Comercio . . Motor vehicles 1958 2,450,000 2,450,000 - - - -*Companhia Mineira de Cimento Portland, S.A . ..... . Cement 1959 1,200,000 - 1,200,000 -Champion Celulose, S.A . .......... . Pulp 1959 4,000,000 825,000 3,175,000 - - -Acos Villares, S.A.(4) ............. . Steel 1966, 1968 4,959,026 728,000 - - 3,272,000 959,026 4,231,026Papel e Celulose Catarinense, S.A.Q4) .... ...... . . Pulp and paper 1966, 1969 7,191,881 11,250 2,093,150 75,023 1,879,600 3,132,858 5,012,458Ultrafertil, S.A.-lnd6stria e Comercio de Fertilizantes . . . Fertilizers 1967 10,658,000 - 314,727 858 7,397,000 2,945,415 10,342,415Petroquimica Uniao, S.A . ................ . Petrochemicals 1969 8,380,000 - 2,363,000 - 3,875,000 2,142,000 6,017,000Poliolefinas, S.A. Industria e Comercio . ......... . Petrochemicals 1970 8,377,100(5) - 1,075,000 - 5,160,000 2,142,100 7,302,100

TOTAL 50,866,007 4,404,250 12,037,877 1,318,881 21,783,600 11,321,399 33,104,999CeylonPearl Textile Mills, Ltd .................. . Textiles 1970 3,250,000(5) - 1,300,000 - 1,500,000 450,000 1,950,000

ChileEmpresa Minera de Mantos Blancos, S.A.(4) ..... . . . Copper mining and smelting 1958, 1959, 1966 4,337,500 867,339 2,232,661 - - 1,237,500 1,237,500Fideos y Alimentos Carozzi, S.A.(4l ...... . ...... Food products 1959, 1965 1,653,846 1,399,560 - - 100,440 153,846 254,286Cementos Bio-Bio, S.A) ....... . . . . . . . . . . Cement 1960, 1961, 1965 1,300,000 960,000 100,000 - 240,000 - 240,000Compahia Manufacturera de Papeles y Cartones, S.A. . . . Pulp and paper 1963 3,000,000 1,439,000 900,000 - 661,000 - 661,000Minera Sagasca, S.A ................... . Copper mining and leaching 1970 10,900,000 - 200,000 - 10,250,000 450,000 10,700,000

TOTAL 21,191,346 4,665,899 3,432,661 - 11,251,440 1,841,346 13,092,786

ChinaAsia Cement Corporation ....... . . . . . . . . . . Cement 1970 4,218,750(5) - 100,000 - 2,900,000 1,218,750 4,118,750Oriental Chemical Fiber Corporation ...... . . . . . . Polyester fiber production 1970 3,000,000(5) - - - 3,000,000 - 3,000,000

TOTAL 7,218,750 - 100,000 - 5,900,000 1,218,750 7,118,750

Colombia*Laminas del Caribe, Ltda ................. . Fibreboard 1959 500,000 500,000 - - - - -

Industrias Alimenticias Noel, S.A.(4) ..... . . . . . . . Food products 1960, 1965 2,052,065 1,094,660 427,436 - 480,320 49,649 529,969*Envases Colombianos, S.A ................ . Metal cans 1961 700,000 203,571 96,429 400,000 - - -Morfeo-Productos Para el Hogar, S.A.(4) ..... . . . . . Home furniture 1961, 1968 175,950 84,000 9,627 - - 82,323 82,323

*Electromanufacturas, S.A ................ . Electrical equipment 1961 500,000 - 210,375 289,625 - - -

Corporaci6n Financiera Colombiana14) ........... . Development financing 1962 2,023,730 - - 514 - 2,023,216 2,023,216Corporaci6n Financiera Nacional(4) ...... . . . . . . . Development financing 1962, 1963 2,042,000 - 843,807 34 - 1,198,159 1,198,159Companfa Colombiana de Tejidos, S.A.M4 ..... . . . . . Textiles 1963, 1967,

1968, 1969 2,126,415 253,598 1,809,155 - - 63,662 63,662Corporacidn Financiera de Caldas(4) ..... . . . . . . . Development financing 1964 701,403 - - - - 701,403 701,403

1970 112,182(5N - - - - 112,182 112,182Forjas de Colombia, S.A.(M) ...... . . . . . . . . . . Steel forging 1964, 1968 1,267,502 - 175,561 423 - 1,091,518 1,091,518

*Almacenes Generales de Dep6sito Santa F6, SA. "Almaviva" Warehousing 1966 1,000,000 623,400 376,600 - - - -Industria Ganadera Colombiana, S.A. ..... . . . . . . Livestock 1966 1,580,542 242,800 - 42,800 714,400 580,542 1,294,942Enka de Colombia, S.A.M ....... . . . . . . . . . . Textiles 1967, 1970 2,681,953 - 140,000 - 860,000 1,681,953 2,541,953Compafita de Desarrollo de Hoteles y

Turismo, Ltda.-Hoturismo ...... . . . . . . . . . Tourism 1969 5,935 - - - - 5,935 5,935Corporaci6n Financiera del Norte ...... . . . . . . . Development financing 1969 431,282 - - - - 431,282 431,282Corporaci6n Financiera del Valle ............. . Development financing 1969 431,282 - - - - 431,282 431,282

*Promotora de Hoteles de Turismo Medellin, S.A ...... . Tourism 1970 338,421 - - 338,421 - - -

Pro-Hoteles, S.A ..................... . Tourism 1970 1,045,425(5) - - - 800,000 245,425 1,045,425TOTAL 19,716,087 3,002,029 4,088,990 1,071,817 2,854,720 8,698,531 11,553,251

Congo, Democratic Republic ofSociete Congolaise de Financement du Developpement . . . Development financing 1970 752,758 - - - - 752,758 752,758

Costa RicaProductos de Concreto, S.A.M1' .C..... . . . . . . . . . Goncrete products 1963, 1966 589,552 185,500 313,219 - 90,833 - 90,833

EcuadorLa Internacional, S.A .................. . Textiles 1966 1,963,309 135,500 758,229 - 872,500 197,080 1,069,580Ecuatoriana de Desarrollo, S.A. (Compafnia Financiera) . . . Development financing 1969 251,371 - - - - 251,371 251,371

TOTAL 2,214,680 135,500 758,229 - 872,500 448,451 1,320,951

El Salvador*Industrias Textiles, S.A .................. . Textiles 1959 140,000 140,000 - - - - -

Hoteles de Centro America Sociedad Anonima .... . Tourism 1969 933,400(5 -) - - 600,000 333,400 933,400TOTAL 1,073,400 140,000 - - 600,000 333,400 933,400

EthiopiaCotton Company of Ethiopia, S.C.M ..... . . . . . . . Textiles 1965 2,507,557 7,000 1,031,487 - 705,000 764,070 1,469,070

1970 618,000(5) - 281,000 - 225,000 112,000 337,000Ethiopian Pulp and Paper, S.C .............. . Pulp and paper 1966 1,908,501 - 699,695 - - 1,208,806 1,208,806H.V.A.-Metahara, S.C ............... . Sugar 1968 9,044,698 - 1,720,340 - 4,870,000 2,454,358 7,324,358

TOTAL 14,078,756 7,000 3,732,522 - 5,800,000 4,539,234 10,339,234

Finland*Oy Kutomotuote Ab, Tricol Oy, Toli Oy ..... . . . . . . Textiles 1960 156,000 48,000 108,000 - - - -

*Rauma-Repola Oy ..................... . Pulp, lumber, machinery 1961 1,875,000 585,000 1,290,000 - - - -

and shipbuildingTeollistamisrahasto Oy-Industrialization Fund

of Finland, Ltd .................... . Development financing 1964 317,288 - 158,009 - - 159,279 159,279Huhtamaki-yhtyma Oy ....... . . . . . . . . . .. . Pharmaceuticals 1965 799,357 104,000 624,514 - - 70,843 70,843

TOTAL 3,147,645 737,000 2,180,523 - - 230,122 230,122

1.11 -Indicates investn7ents which have been fully cancelled, terminated, wrItten off, sold. redeemed or repaid. (continued)

Statement of Operational Investments (continued) Appendix C

June 30, 1970Expressed in United States Currency-See Notes to Financial Statements, Appendix D

PrincipalOriginal repayments Investments held by the Corporation

commitments to the Loans and Cancellations,Fiscal years net ot Corporation equity soad terminations Total loans

COUNTRY in which exchange and or agreed to and and equityand Obligor Type of business commitments were made adjustments (t) redemptions be sold (2) (3) write-offs Loans Equity (at cost)

Greecet Aevol Industrial Company of Organic Fertilizers, S.A ..... . Fertilizers 1962 $ 600,000 $ 120,000 $ 480,000 $ - $ - $ - $ -"Titan" Cement Company, S.A.(4) ...... . . . . . . . . Cement 1965, 1966 1,525,920 - 975,836 - 275,000 275,084 550,084National Investment Bank for Industrial Development, S.A. . . Development financing 1966 719,082 - - - - 719,082 719,082General Cement Company, S.A ............... . Cement 1966 3,500,000 - 1,400,000 - 2,100,000 - 2,100,000Aluminium de Grece, Soci6te Anonyme Industrielle

et Commerciale ........ . . . . . .. . . . . . . Aluminum production 1970 8,600,000 - 1,481,250 - 2,612,500 4,506,250 7,118,750TOTAL 14,945,002 120,000 4,337,086 - 4,987,500 5,500,416 10,487,916

Guatemala*Industria Harinera Guatemalteca, S.A ............ . Flour milling 1959 200,000 66,000 134,000 - - - -

HondurasEmpresa de Curtidos Centro Americana, S.A.(4) .... . . . . Leather tanning 1964, 1966 377,500 77,550 100,750 - 132,450 66,750 199,200Companita Pino Celulosa de Centro America, S.A.14t .... . . Pulp and paper 1969, 1970 75,000 - - - - 75,000 75,000

TOTAL 452,500 77,550 100,750 - 132,450 141,750 274,200India*Republic Forge Company, Ltd ................ . Steel forging plant 1959 1,500,000 - - 1,500,000 - - -t Kirloskar Oil Engines, Ltd ................. . Diesel engines 1959 850,000 - - 850,000 - - -

Assam Sillimanite, Ltd ................... . Refractory bricks 1960 1,365,000 580,000 - 478,724 306,276 - 306,276K.S.B. Pumps, Ltd ..................... . Pumps, compressors 1961 210,000 189,000 - - 21,000 - 21,000

and valvesPrecision Bearings India, Ltd.(4) ...... . . . . . . . . . Bearings 1963, 1966 1,030,197 26,200 260,000 - 365,050 378,947 743,997Fort Gloster Industries, Ltd ................. . Transmission cables 1964 1,211,047 355,250 151,380 - 355,250 349,167 704,417Mahindra Ugine Steel Company, Ltd ............ . Steel products 1964 3,296,607 330,000 142,339 124,166 1,870,275 829,827 2,700,102Lakshmi Machine Works, Ltd ................ . Textile machinery 1964 1,312,434 214,080 141,743 - 642,240 314,371 956,611Jayshree Chemicals, Ltd .................. . Chemicals 1967 1,154,816 210,000 - 228,912 611,088 104,816 715,904Indian Explosives, Ltd ................... . Fertilizers 1967 11,462,437 - 1,194,673 3,010,000 4,661,600 2,596,164 7,257,764Zuari Agro Chemicals, Ltd.(4) ................ Fertilizers 1969 15,940,000(5) - 950,000 - 11,250,000 3,740,000 14,990,000

1970 3,000,000(5) - 3,000,000 - - - -TOTAL 42,332,538 1,904,530 5,840,135 6,191,802 20,082,779 8,313,292 28,396,071

Iran*Sherkate Sahami Kahkashan ................ Ceramic tiles 1959 300,000 300,000 - - - - -

Sherkate Sahami Navard va Luleh Ahwaz ..... . . . . . Steel products 1969 3,874,880 - 1,324,134 - 1,835,000 715,746 2,550,746TOTAL 4,174,880 300,000 1,324,134 - 1,835,000 715,746 2,550,746

Italy*Magrini Meridionale, S.p.A ................. . Electrical equipment 1960 960,000 - 960,000 - - - -

Ivory CoastBanque Ivoirienne de Developpement Industriel, S.A ..... . Development financing 1965 204,081 - - - - 204,081 204,081

Jamaica*Jamaica Pre-Mix, Ltd .................... . Pre-mixed concrete 1961 224,000 224,000 - - - -

Pegasus Hotels of Jamaica, Ltd ............... . Tourism 1969 2,913,000 - 954,499 - 1,280,000 678,501 1,958,501TOTAL 3,137,000 224,000 954,499 - 1,280,000 678,501 1,958,501

KenyaKenya Hotel Properties, Ltd ................ . Tourism 1967 3,073,186 - 962,180 - 1,550,000 561,006 2,111,006Panafrican Paper Mills (E.A.), Ltd ... . .......... Pulp and paper 1970 14,651,799(5) - 3,204,000 - 7,856,000 3,591,799 11,447,799

TOTAL 17,724,985 - 4,166,180 - 9,406,000 4,152,805 13,558,805KoreaKorea Development Finance Corporation ..... . . . . . . Development financing 1968 702,043 - - - - 702,043 702,043Honam Silk Industry Company ...... . . . . . . . . . Textiles . 1969 1,707,500(') - - - 1,400,000 307,500 1,707,500Atlas Paper Company, Ltd ................. . Pulp and paper 1970 5,000,000(5) - 1,500,000 - 3,150,000 350,000 3,500000

TOTAL 7,409,543 - 1,500,000 - 4,550,000 1,359,543 5,909,543LiberiaLiberian Bank for Industrial Development and Investment . . Development financing 1966 250,000 - 1,510 - - 248,490 248,490

MalaysiaMalaysian Industrial Development Finance, Berhad .... . . Development financing 1964 1,307,500 - 490,000 - - 817,500 817,500Tasek Cement, Berhad ......... . . . . . . . . . . Cement 1966 1,559,381 134,375 787,506 - 637,500 - 637,500Malayawata Steel, Berhad(4) ....... . . . . . . . . . . Steel 1968, 1969 3,693,489 - 1,236,002 - 1,251,000 1,206,487 2,457,487IndiaMalaysia Textiles, Berhad ...... . . . . . . . . . Textiles 1970 1,499,900(5) - - - 1,250,000 249,900 1,499,900

TOTAL 8,060,270 134,375 2,513,508 - 3,138,500 2,273,887 5,412,387MauritaniaSociete Miniere de Mauritanie ........ . Copper mining and treatment 1968 20,006,515 - 9,558,343 - 9,724,263 723,909 10,448,172Mexico*Industrias Perfect Circle, S.A.04) .... . . . . . . . . . . Industrial equipment 1958, 1959 800,000 600,000 - 200,000 - -*Bristol de Mexico, S.A ................... . Aircraft engine overhaul 1958 520,000 520,000 - -*Acero Solar, S.A ...................... . Twist drills 1961 280,000 - 280,000 - - - -Compafiia Fundidora de Fierro y Acero de Monterrey, S.A.(4) . Steel 1962, 1965,

1966, 1968 23,741,411 - 20,698,607 324,321 1,298,800 1,419,683 2,718,483Tubos de Acero de Mexico, S.A. ....... . . . . . . . Seamless steel pipes 1963 1,000,000 29,000 909,000 - 62,000 - 62,000

*Quimica del Rey, S.A .................... . Sodium sulphate 1963 750,000 73,998 676,002 - - - -Industria del Hierro, S.A.(4) ....... . . . . . . . . . . Construction equipment 1964,1966 1,961,569 - 880,704 - - 1,080,865 1,080,865Minera del Norte, S.A ................... . Iron ore mining 1970 1,500,000 - - - 1,500,000 - 1,500,000

TOTAL 30,552,980 1,222,998 23,444,313 524,321 2,860,800 2,500,548 5,361,348MoroccoBanque Nationale pour le Developpement Economique . .. . Development financing 1963 1,495,774 510,687 - - - 985,087 985,087Compaifa Industrial del Lukus, S.A ............. . Food processing and canning 1966 1,388,486 - 420,000 - 470,000 498,486 968,486

TOTAL 2,884,260 510,687 420,000 - 470,000 1,483,573 1,953,573NicaraguaTextiles Fabricato de Nicaragua, S.A. ............ Textiles 1968 2,071,428 - 928,571 - 500,000 642,857 1,142,857

NigeriaNigerian Industrial Development Bank, Ltd ......... . Development financing 1964 1,400,000 - 484 - - 1,399,516 1,399,516Arewa Textiles, Ltd.(4) ....... . . . . . . . . . . . . . Textiles 1964, 1967, 1970 1,574,909 1,680 728,036 250,000 48,480 534,570 583,050

12,143 (6)TOTAL 2,974,909 1,680 728,520 262,143 48,480 1,934,086 1,982,566

Pakistan*Steel Corporation of Pakistan, Ltd ............. . Rolled steel products 1958 630,000 630,000 - -*Adamjee Industries, Ltd .................. . Cotton textiles 1959 750,000 749,705 - 295 - - -Ismail Cement Industries, Ltd.(4) ...... . . . . . . . . Cement 1962, 1965 5,668,408 1,259,976 489,079 153,609 3,348,416 417,328 3,765,744Pakistan Industrial Credit and Investment

Corporation, Ltd.(4) ....... . . . . .. . .. .. . . Development financing 1963,1969 486,246 - 36,846 - - 449,400 449,400Crescent Jute Products, Ltd ................. . Textiles 1965 1,950,000 487,200 121,800 13,621 1,327,379 - 1,327,379Packages, Ltd ....................... . Paper products 1965 3,151,662 - 1,323,718 - 1,223,000 604,944 1,827,944Pakistan Paper Corporation, Ltd. ...... . . . . . . . . Paper 1967 5,219,088 1,000 327,457 - 2,871,543 2,019,088 4,890,631Dawood Hercules Chemicals, Ltd .............. . Fertilizers 1969 3,923,255 - - - 1,000,000 2,923,255 3,923,255

*Karnaphuli Paper Mills, Ltd ................ . Pulp and paper 1969 6,230,001 - - 6,230,001 - - -TOTAL 28,008,660 3,127,881 2,298,900 6,397,526 9,770,338 6,414,015 16,184,353

*Indicates investments which have been fully cancelled, terminated, written off, sold, redeemed or repaid. (continued)

Statement of Operational Investments (continued) Appendix C

June 30, 1970Expressed in United States Currency-See Notes to Financial Statements, Appendix D

PrincipalOriginal repayments Investments held by the Corporation

commitments to the Loans and CancellationsnFiscal years net On Corporation equity sDId terminations Total loans

COUNTRY in which exchange and or agreed to and and eouityand Obligor Type of business commitments were made adjustments (t) redemptions be sold (2) (3) write-otfs Loans Equity (at cost)

Peru*Industrias Reunidas, S.A .................. . Home appliances 1960 $ 250,000 $ 250,000 $ - $ - $ - $ -

*Luren, S.A. and Ladrillos Calcareos, S.A ........... . Bricks 1960 280,000 280,000*Durisol del Peru, S.A .................... . Building materials 1960 300,000 - - 300,000(l)Fertilizantes Sinteticos, S.A.(0) ...... . . . . . . . . . . Fertilizers 1960, 1962 4,083,290 1,503,250 2,264,000 - 316,040 - 316,040Cemento Andino, SAt.t ..... . . . . . . . . . . . . . Cement 1962, 1968 2,461,500 1,221,125 110,000 - 1,040,375 90,000 1,130,375Compahia de Cemento Pacasmayo, S.A.(4) ..... . . . . . Cement 1964, 1967 1,605,151 48,600 1,357,200 - 29,351 170,000 199,351

TOTAL 8,979,941 3,302,975 3,731,200 300,000 1,385,766 260,000 1,645,766Philippines*Private Development Corporation of the Philippines .... . Development financing 1963 4,359,063 - 4,359,063 - - - -Manila Electric Company. .......... . . Electric power 1967 8,000,000 70,750 2,397,000 - 5,532,250 - 5,532,250Meralco Securities Corporation ...... . . . . . . . . . Electric power 1967 4,000,000 - 360,977 - - 3,639,023 3,639,023Philippine Long Distance Telephone Company .... . . . . Utilities 1970 4,500,000 - - - 4,500,000 - 4,500,000Mariwasa Manufacturing, Inc ................ . Floor and wall tiles 1970 1,095,450 - 547,726 - 384,500 163,224 547,724Paper Industries Corporation of the Philippines .... . . . Pulp and paper 1970 2,214,284 - 1,396,648 410,778 - 406,858 406,858

TOTAL 24,168,797 70,750 9,061,414 410,778 10,416,750 4,209,105 14,625,855SenegalSociete Industrielle d'Engrais au Senegal .......... Fertilizer 1967 3,459,766 - 755,000 - 1,695,000 1,009,766 2,704,766

SpainFAbrica Espatola Magnetos, S.A.(4) ............. . Automotive electrical 1962, 1965, 1967 3,362,288 397,000 1,921,789 - 468,000 575,499 1,043,499

equipmentBanco del Desarrollo Econ6mico Espahol, S.A.(4) .. . .. .. Development financing 1963, 1965 585,351 - - - - 585,351 585,351

TOTAL 3,947,639 397,000 1,921,789 - 468,000 1,160,850 1,628,850

SudanKhartoum Spinning and Weaving Company, Ltd ....... . Textiles 1964 688,893 85,900 225,846 12,110(6) 92,400 272,637 365,037

Tanzania*Kilombero Sugar Company, Ltd.(4) ............. Sugar 1960, 1964 4,657,485 149,040 3,914,400 292,560 - - -

301,485(6)

Thailand*Concrete Products and Aggregate Company, Ltd ....... . Concrete products 1959 300,000 - 300,000 - -

Industrial Finance Corporation of Thailand ..... . . . . . Development financing 1964 193,108 - - - - 193,108 193,108Siam Cement Group Companies ...... . . . . . . . . . Cement 1969 22,081,569 - 14,874,089 - 4,830,000 2,377,480 7,207,480

TOTAL 22,574,677 - 15,174,089 - 4,830,000 2,570,588 7,400,588

TunisiaNPK-Engrais, SA.T .................... . Fertilizers 1963 3,500,000 526,400 1,157,173 11,498 656,000 1,148,929 1,804,929Societe Nationale d'investissement(4) ..... . . . . . . . Development financing 1966 575,926 - - - - 575,926 575,926

1970 628,572 (5) - - - - 628,572 628,572Compagnie Financiere et Touristique, S.A .......... . Tourism financing 1969 9,904,944 - 1,109,290 - 6,890,710 1,904,944 8,795,654

TOTAL 14,609,442 526,400 2,266,463 11,498 7,546,710 4,258,371 11,805,081

TurkeyTurkiye Sinai Kalkinma Bankasi, A.S..4) .... . . . . . . Development financing 1964, 1967, 1969 1,671,389 366,828 - - 1,304,561 1,304,561Sentetik Iplik Fabrikalari, A.S.0) ...... . . . . . . . . . Textiles 1966, 1969 3,297,222 225,000 - - 2,175,000 897,222 3,072,222Viking Kagit ve Seluloz, A.S. ...... . . . . . . . . . . Pulp, paper and paper products 1970 3,167,334 - - - 2,500,000 667,334 3,167,334Anadolu Cam Sanayii, A.S ................. . Glass and glass products 1970 11,583,330'5) - 4,000,000 - 6,000,000 1,583,330 7,583,330

TOTAL 19,719,275 225,000 4,366,828 - 10,675,000 4,452,447 15,127,447UgandaMulco Textiles, Ltd. .................... Textiles 1965 3,508,436 511,691 1,292,200 70,000 935,520 471,429 1,406,949

227,596 (6)

Venezuela*Sider6rgica Venezolana "Sivensa", S.A.M ..... . . . Steel products 1960, 1964 3,140,529 1,087,500 2,053,029 - - - -*Diablitos Venezolanos, C.A ................. . Food products 1961 500,000 - 176,000 324,000 - - -C.A. Venezolana de Desarrollo (Sociedad Financiera)(4) . . . Development financing 1964, 1968 8,836,183 19,612 1,306,350 - 6,285,388 1,224,833 7,510,221Dominguez y Cia.-Caracas, S.A. ...... . . . . . . . . Tin cans 1966 514,541 - 84,341 - - 430,200 430,200Protinal, C.A ..... ................. Animal feed 1969 2,079,178 - 1,455,802 - 623,376 - 623,376

TOTAL 15,070,431 1,107,112 5,075,522 324,000 6,908,764 1,655,033 8,563,797

YugoslaviaInternational Investment Corporation for Yugoslavia .... . Development financing 1970 2,000,000 - - - - 2,000,000 2,000,000Zavodi Crvena Zastava/Fiat S.p.A .............. . Automobile manufacturer 1970 8,000,000 - 600,000 - - 7,400,000 7,400,000

TOTAL 10,000,000 - 600,000 - - 9,400,000 9,400,000

Regional InvestmentLatin America

ADELA Investment Company, S.A. ............ Development financing 1970 10,000,000(5) - - - 10,000,000 - 10,000,000

GRAND TOTAL $476,518,314 $31,390,497 $142,499,471 $23,461,517 $180,725,113 $98,441,716 $279,166,829Less: INVESTMENTS NOT EFFECTIVE 85,565,958 - 15,410,000 - 55,091,000 15,064,958 70,155,958

TOTAL EFFECTIVE INVESTMENTS $390,952,356 $31,390,497 $127,089,471 $23,461,517 $125,634,113 $83,376,758 $209,010,871(a)

'Indicates investments which have been fully cancelled, terminated, written oh, sold, redeemed or repaid.

Notes: SUMMARY(1) Includes standby and underwriting commitments. Effective investments held by the Corporation .$209,010,871(2) Includes acquisitions by other investors of securities covered by standby and Investments not effective (Including $15,410,000

underwriting commitments of $27,542,886. agreed to be sold) .85,565,958(3) Amounts sold represent respective book values and any profits or losses on these Principal repayments to the Corporation and redemptions . . . 31,390,497

sales have been entered directly to the reserve against losses. To date such Effective loans and equity investments sold or agreedprofits have totalled $4,953,273 and losses $438,161 resulting in net profits to be sold .127,089,471of $4,515,112. Cancellations and terminations .22,608,183

(4) The Corporation has made more than one commitment to this company. Write-offs .853,334(5) Commitment has been signed but does not become effective (i.e. funds may not Gross commitments made ................... $476,518,314

be withdrawn) until certain legal formalities have been completed and otherconditions fulfilled.

(6) Write-off-Currency devaluation $553,334.(7) Write-off-Investment $300,000.(8) Includes undisbursed balance of $41,997,309.

(continued)

Statement of Operational Investments (continued) Appendix C

June 30, 1970

Expressed in United States Currency-See Notes to Financial Statements, Appendix D

Summary of Currencies in Which Effective Loans and Equity InvestmentsHeld by the Corporation are Denominated

Loans aod equity Rates of exchangeinvestments for amounts (1)

Currency Disbursed Undisbursed Disbursed Undisbursed

Argentine pesos ........ . . . .. . . . . . . . $ 1,600,000 $ - 3.500 -

Brazilian cruzeiros ........ . ........ . . 7,888,261 1,291,038 3.250 4.530CFA francs ......... ............ . 1,737,756 200,000 247.446 277.710Chilean escudos ........ . . ........ . . 153,846 450,000 2.340 -

Colombian pesos ................... . 7,655,945 684,979 12.606 18.470Congo zaires ..................... . 377,758 375,000 0.496 0.500Ecuadoran sucres ........ . ........ . . 448,451 - 21.296 -

Ethiopian dollars ................... . 3,999,234 428,000 2.481 2.500Finnish markkaa ........ . .......... . 230,122 - 3.216 -

Greek drachmas . . . . . . . . . . . . . . . . . . . . 994,166 - 31.483 -

Honduran lempiras .................. . 123,000 18,750 2.000 2.000Indian rupees ........ . ........... . 4,573,292 - 6.705Iranian rials ......... . ........... . 636,538 79,208 75.408 75.750Jamaican dollars ................... . 282,751 395,750 0.833 0.833Kenya shillings ........ . .......... . 561,006 - 7.156 -

Korean won ......... . ........... . 702,043 - 274.200 -

Malaysian dollars ........ . ....... . . . 2,023,987 - 3.064 -

Mexican pesos .................... . 2,500,548 - 12.490 -

Moroccan dirhams ........ . ........ . . 1,383,573 100,000 5.016 5.060Nicaraguan cordobas ................. . 642,857 - 7.000 -

Nigerian pounds ................... . 1,934,086 - 0.357 -

Pakistan rupees ........ . ......... . . 4,954,514 1,459,501 4.737 4.762Philippine pesos ................... . 3,986,252 222,853 4.101 6.170Pounds sterling ........ . ......... . . 1,017,600(2) - 0.417 -

Spanish pesetas ........ . .......... . 1,160,850 - 60.591 -

Sudanese pounds ........ . ........ . . 272,637 - 0.348 -

Thai baht ......... . ............ . 2,570,588 - 20.863 -

Tunisian dinars ........ . ......... . . 2,677,418 952,381 0.481 0.525Turkish liras ..................... . 2,746,228 122,889 9.000 9.000Uganda shillings ........ . .......... . 471,429 - 7.148 -

United States dollars ....... ....... . . . 105,051,793(3) 35,216,960(3) -

Venezuelan bolivares ................. . 1,655,033 - 4.485

TOTALS ....... . . . . . . . . . . $167,013,562 $41,997,309

Loans ... $125,634,113 $ 95,467,153 $30,166,960

Equity ... 83,376,758 71,546,409 11,830,349

TOTALS ... $209,010,871 $167,013,562 $41,997,309

ft) Represents currency unit per United States dollar.Undisbursed balances have been translated into United States dollars at the par values as specified in the "Schedule ofPar Values," published by the International Monetary Fund, or in the case of Colombia and the Philippines at the ratesshown. Non-effective investments have also been translated into United States dollars at the par values with the exceptionof Ceylon rupees and Korean won where the respective rates of 9.227 and 280.000 to 1 United States dollar have been used.

(2) Represents loans.(3)Includes loans disbursed of $94,449,553 and undisbursed of $30,166,960.

40

Notes to Financial Statements Appendix D

June 30, 1970

Note A Note CThe undisbursed and disbursed balances of investment commitments made Pursuant to action of the Directors, the net income of the Corporation hasin currencies other than United States dollars and held by the Corporation been allocated to a reserve against losses and the future net income ofhave been translated into United States dollars at the exchange rates as the Corporation will, until further action by the Directors or the Board ofshown in the table appearing in Appendix C. Governors, be allocated to this reserve.Accrued interest, commitment charges and other income receivable in cur- Consequent upon default in payment, the Corporation has obtained a finalrencies other than United States dollars, have been translated into United judgment in Brazil for principal and interest owing to it by D.L.R. PlasticosStates dollars at the approximate market rates of exchange. do Brasil, S.A. The prospects for recovery are uncertain.

Fertilizantes Sinteticos, S.A. is in arrears in payment of $65,701 interestNo representation is made that any currency held by the Corporation is due on convertible subordinated debentures of which $14,000 is for theconvertible into any other currency at any rate or rates. account of participants.

Note B Editorial Codex Sociedad An6nima has not paid interest and commitmentThe amount of accrued income on loans and underwriting commitments charges of $304,628 due on May 1, 1970 of which $107,587 is for theincludes $171,705 which is not receivable by the Corporation within account of participants.one year.The amount receivable from purchasers on account of effective loans and Generalequity investments agreed to be sold includes $3,240,168 in respect of The operational investments are represented by both loans and equity. Insales made on an instalment basis. Of this amount $416,160 is receivable addition, in certain investments, the Corporation has the right to acquireby the Corporation within one year. shares and/or participate in the profits of the enterprise.

41

Opinion of Financial StatementsIndependent Auditor Covered by the

Foregoing Opinion

1707 L Street, N.W.Washington, D.C. 20036

July 22, 1970

ToInternational Finance CorporationWashington, D.C.

In our opinion, the accompanying financial statements (Appendix A through Balance Sheet ..................... .. . Appendix AAppendix D) present fairly, in terms of United States currency, the financial Statement of Income and Expenses .Appendix Bposition of International Finance Corporation at June 30, 1970, and theresults of its operations for the year then ended, in conformity with gen- Statement of Changes in Reserve Against Losses ...... . Appendix Berally accepted accounting principles applied on a basis consistent with Statement of Operational Investments ....... . . . . . Appendix Cthat of the preceding year. Our examination of these statements was made Notes to Financial Statements .......... . .... . Appendix Din accordance with generally accepted auditing standards, and accordinglyincluded such tests of the accounting records and such other auditing pro-cedures as we considered necessary in the circumstances.

PRICE WATERHOUSE & CO.

42

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Governors and Alternates

June 30, 1970

Member Governor Alternate

Afghanistan .......... . . Mohammed AmanArgentina ............ . Carlos Moyano Llerena ......... . . Egidio lanneliaAustralia ............ . L. H. E. Bury .............. . Sir Roland WilsonAustria ............. . Hannes Androsch ............ . Walter NeudorferBelgium ............ . Baron Snoy et d'Oppuers ......... . Baron AnsiauxBolivia ............. . Oscar Vega Ldpez ............ . Luis Ovando CandiaBrazil .............. . Antonio Delfim Netto .......... . . Ernane GalveasBurma ............. . Kyaw Nyein ............... . Chit MoungCanada ............. . Edgar John Benson ........... . Maurice F. StrongCeylon ............. . N. M. Perera .............. . Murugeysen RajendraChile .............. . Carlos Massad Abud .......... . . Jorge Marshall SilvaChina .............. . K. T. Li .................. Chao-kuei MaColombia ............ .Abd6n Espinosa Valderrama ....... . Jorge Mejia PalacioCongo, Democratic Republic of . . L. Namwisi ............... . Cyrille AdoulaCosta Rica ........... . Omar Dengo 0 .............. . Alvaro Vargas E.Cyprus ............. .A. C. Patsalides ..... . ....... A. C. AfxentiouDenmark ............ . Otto Muller ............... . Karl Otto BredahlDominican Republic ...... . Diogenes H, Fernandez ......... . . Luis M. Guerrero GomezEcuador ............. . Luis G6mez-lzquierdo ........... .Carlos Mantilla-OrtegaEl Salvador ........... . Edgardo Suarez C ............ . Armando InterianoEthiopia ............ . Mammo Tadesse ............ . Wolde Mariam G rmaFinland ............. . Mauno Koivisto ............. . Jussi LinnamoFrance ............. . Ministre des Finances ......... . . Bernard ClappierGermany ............ . Karl Schiller .............. . Alex MdllerGhana ............. . Joseph Henry Mensah .F........ . . E. N. OmaboeGreece ............. . Emmanuel Fthenakis .......... . . Achilles CominosGuatemala ........... .Emilio A. Peralta P ........... . Jose Luis BouscayrolGuyana ............. . P. A. Reid ............... . H. 0. E. BarkerHaiti .............. . Clovis Desinor ............. . Antonio AndreHonduras ............ . Manuel Acosta Bonilla ... ...... Ricardo Ziniiga AugustinusIceland ............. . Gylfi Gislason .............. . Magnos JonssonIndia .............. .Y. B. Chavan(') .I............ . 1. G. PatelIndonesia ............ . Ali Wardhana .............. . Djoeana KoesoemohardjaIran .............. . Jamshid Amouzegar ........... . Jahangir AmuzegarIraq .............. . Amin Abdul Karim Kalamchi ....... . Sa'adi IbrahimIreland ............. . George Colley .............. . C. H. MurrayIsrael .............. . David Horowitz ............. . Avraham AgmonItaly .............. . Guido Carli ............... . Paolo BaffiIvory Coast .......... . . Konan Bedie .............. . Mohamed DiawaraJamaica ............. . Edward Seaga .0............ . G. Arthur BrownJapan .............. . Takeo Fukuda .............. . Tadashi SasakiJordan ............. .Sami Judah ............... . Adel ShamaylehKenya ............. . Mwai Kibaki .............. . John Njoroge MichukiKorea ............. . Duck Woo Nam ............. . Sung Whan KimKuwait ............. . Abdul Rahman Salim AlIAteeqi ..... . Abdlatif Y. Al-HamadLebanon ......... .. Khalil Salem .Farid SolhLiberia. ........ J. Milton Weeks .Cyril BrightLibya ......... M. H. Arrabeie .K. M. SherlalaLuxembourg ......... Pierre Werner .Albert DondelingerMalagasy Republic ....... .Ralison Rakotovao .Raymond RandriamandrantoMalawi ......... Aleke K. Banda .K. J. BarnesMalaysia. . ........ Tan Siew Sint) .Mohamed Sharif bin Abdul SamadMauritania ......... Mamadou Tour .Mamadou Cissoko

44

Appendix F

Member Governor Alternate

Mauritius ............ Veerasamy Ringadoo ...... . . . . . . Ramaswamy PyndiahMexico ............ Antonio Ortiz Mena ....... . . . Jose Hernandez DelgadoMorocco ........... Abdelkrim Lazraq ........ . . . M'Hamed Bargach(tt

Nepal ........... Bhekh Bahadur Thapa .......... . Puskar Nath PantNetherlands .......... . H. J. Witteveen ........ . . . . . . J. H. 0. graaf van den BoschNew Zealand .......... . H. G. Lang ......... . .. . . .. . C. F. SprouleNicaragua ........... Guillermo Sevilla-Sacasa ......... . Joan Jose Martinez L.Nigeria ........... 0. Awolowo ......... .. . .. . . . Abdul Aziz AttaNorway ............ Otto Grieg Tidemand ...... . . . . . . Christian BrinchPakistan ........... Nawab Mozaffar Ali Khan Qizilbash .... . Ghulam Ishaq KhanPanama . .......... Gabriel Castro S.(" .......... . Nicolas Ardito BarlettaParaguay. .......... Cesar Romeo Acosta ....... . . . . . Augusto ColmanPeru ........... Francisco Morales Bermudez C....... . Luis Barua CastanedaPhilippines ........... Cesar Virata ......... . . . .. . . Roberto S. BenedictoPortugal ............ Joao Augusto Dias Rosas ...... . . . . Luis M. Teixeira PintoSaudi Arabia. .... Ahmed Zaki SaadSenegal ........... Adama Diallo .............. Hamet DiopSierra Leone ........... M. S. Forna .............. Elkanah Laurence CokerSingapore ........... Goh Keng Swee .............. Hon Sui SenSomalia ........... Ibrahim Megag Samater ......... . Omar Ahmed OrnarSouth Africa ........... Nicolaas Diederichs ........... . Theunis Willem de JonghSpain. .......... Alberto Monreal Luque .......... . Mariano Navarro RubioSudan ........... Abdel Karim Mirghani ....... . . .. Gharieballa Mohamed HamidSwaziland ........... J. R. Masson .............. James NxumaloSweden ........... G. E. String .............. Krister WickmanSyrian Arab Republic ...... . Nour Allah Nour Allah .......... . Ammar JammalTanzania ........... P. Bomani .............. Cleopa D. MsuyaThailand ........... Serm Vinicchayakul ........... . Bisudhi NimmanahaemindaTogo ........... Jean Tevi. ............. Boukari DjoboTunisia ........... Chedly Ayari .............. Ali ZouaouiTurkey ........... Mesut Erez .............. Kemal CanturkUganda ........... Laurence Kalule-Settala .F......... . E. B. WakhweyaUnited Arab Republic ...... . Hassan Abbas Zaki ........... . Hamed Abdel Latif El SayehUnited Kingdom ... .... . Sir Leslie O'Brien .............. Sir Douglas AllenUnited States ........... David M. Kennedy ........... . Nathaniel SamuelsUruguay.. . Armando R. MaletVenezuela ........... Rafael Alfonzo Ravard ........... . Carlos Emmanuelli LlamozasViet-Nam ........... ............ . Nguy§n Van DongYemen Arab Republic ...... . Abdul Karim Al-Arashyttt .......... Mohamed Said Alattar(tt

Yugoslavia ........... Janko Smole ......... . . . .. . . Ksente BogoevZambia .......... . E. H. K. Mudenda .F...... . . . . . E. G. Kasonde(1) Appointment effective after June 30, 1970.

45

Directors and Alternates Appendix Gand Their Voting Power

June 30, 1970

Director Alternate Casting votes of Total votes

APPOINTEDRobert E. Wieczorowski . ...... . Emmett J. Rice .......... . United States ........................... . 35,418Derek J. Mitchell . . ......... M. P. J. Lynch .......... . United Kingdom ......... .. . .. . . .. . .. . . .. . 14,650Georges Plescoff . ........ Jean P. Carribre .... . ...... France.. .. 6,065S. R. Sen. ......... M. R. Shroff ......... India.. .. 4,681Wilhelm Hanemann .......... Jorg Jaeckel ......... Germany.. .. 3,905ELECTEDReignson C. Chen . ........ C. L. Chow. ........ China, Korea, Viet-Nam. . ... 5,209(China) (China)

Patrick M. Reid(') .......... A. Roy MacMillan ......... Canada, Guyana, Ireland, Jamaica. . . . . 5,169(Canada) (Canada)

S. Osman Ali.. ..... Abdol Ali Jahanshahi ....... . Iran, Iraq, Jordan, Kuwait, Lebanon, Pakistan, Saudi Arabia,(Pakistan) (Iran) Syrian Arab Republic, United Arab Republic .5,022

J. 0. Stone ............. A. W. Young .......... . Australia, New Zealand, South Africa ...... . . . . . . . . . . 4,996(Australia) (New Zealand)

Seitaro Hattori . .......... . H. Jinadasa Samarakkody ..... . Burma, Ceylon, Japan, Nepal, Singapore, Thailand ........ . 4,972(Japan) (Ceylon)

Giorgio Rota . . ........ Juan Moro ........... . Greece, Italy, Portugal, Spain ....... . . . . . . . . . . . . . 4,822(Italy) (Spain)

Pieter Lieftinck .. ......... Vladimir Ceric .......... . Cyprus, Israel, Netherlands, Yugoslavia ...... . . . . . . . . . 4,770(Netherlands) (Yugoslavia)

Andre van Campenhout ....... . Friedrich T. Krieger ........ . Austria, Belgium, Luxembourg, Turkey ...... . . . . . . . . . 4,633(Belgium) (Austria)

Christopher Kahangi ......... Donatien Bihute ........ Ethiopia, Kenya, Liberia, Malawi, Nigeria, Sierra Leone,(Tanzania) (Burundi) Sudan, Tanzania, Uganda, Zambia .4,109

Erik L. Karlsson . ......... . Erik Hauge ........... . Denmark, Finland, Iceland, Norway, Sweden ..... . . . . . . . 4,097(Sweden) (Denmark)

Abderrahman Tazi ......... . Mohammed Younos Rafik ..... . Afghanistan, Ghana, Indonesia, Libya, Malaysia, Morocco ..... . 3,715(Morocco) (Afghanistan)

Luis Machado .. ... . Arnoldo Ramirez-Eva ....... . Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Mexico,(Cuba) (Nicaragua) Nicaragua, Panama, Peru, Venezuela .3,629

Angel R. Caram . .......... .Abelardo Brugada S ........ . Argentina, Bolivia, Chile, Paraguay, Uruguay ........... . 3,549(Argentina) (Paraguay)

Mohamed Nassim Kochman .... . Michel Bako ..... . Congo (Democratic Republic of), Ivory Coast, Malagasy(Mauritania) (Chad) Republic, Mauritania, Mauritius, Senegal, Somalia, Togo .3,054

Virgilio Barco .......... Oscar Alviar-Ramirez ....... . Brazil, Colombia, Dominican Republic, Ecuador, Philippines . . . 3,024(Colombia) (Colombia)

In addition to the Directors and Alternates shown in the foregoing list, the following also served as Director after June 30, 1969:

Director End of period of service

E. W. Maude .......... ....... . October 21, 1969(United Kingdom)

Covey T. Oliver ... ....... November 3, 1969(United States)

Ernst vom Hofe . ......... January 31, 1970(Germany)

S. Jagannathan. . ........ June 15, 1970(India)

Hideo Suzuki ... ....... June 15, 1970(Japan)

Note: Swaziland (285 votes), Tanisia (383 votes) and Yemen Arab Republic (297 Votes) not formally represented by a Director.(l)To be succeeded by Claude Isbister (Canada), effectioe August 1, 1970.

46

Officers and Department Directors Appendix H

President ................................ . *Robert S. McNamaraExecutive Vice President ............ .. .. .. .. .. .. . William S. GaudVice President .................... .... .... . . Ladislaus von HoffmannGeneral Counsel .................... .... ..... . R. B. J. RichardsTreasurer ............................. . . . . *Eugene H. RotbergController ................................ . *Francis R. PooreSecretary ................................ . *M. M. Mendels

Director, Programming and Budgeting Department .*..... . . . . . . . *John H. AdlerDirector of Investments, Africa and Middle East ...... . . . . . . . . Albert Adomakoh(1 )Director of Information and Public Affairs ....... . . . . . . . . . . *William ClarkSpecial Representative in Europe ......... . . .. . . .. . . . . Alfred E. DavidsonDirector, Engineering Department ..... . . . H. Geoffrey HiltonDirector of Investments, Asia ..................... Ronald K. JonesDirector, European Office ..................... *Arthur KaraszDirector of Marketing.. .................... Henry KochAccounting Adviser.. .................. E. Waldo MauritzSpecial Representative in the Far East .................. . Naokado NishiharaDirector of Investments, Latin America, Europe and Australasia ..... . . Neil J. PatersonEconomic Adviser ................. .... .... ... . Moeen A. QureshiDirector of Administration ............ .. .. .. .. .. .. . *Hugh B. Ripman

*These officers and department heads hold the same positions in the International Bank for Reconstruction and Development.(1)Effective August 1, 1970.

International Finance Corporation

Headquarters / 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Telephone: EXecutive 3-6360European Office / 66 Ave. d'1ena, Paris 16e, France. Telephone: 553-2510

Cable Address / CORINTFIN