public disclosure authorized 2 1366 - world...
TRANSCRIPT
SEoVENTH AVMNUL REPORT 1962-1963
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INTERNATIONL FINANCE CORPORATION
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seventh annual report
co nte nts
LETTER OF TRANSMITTAL . . . . . . . . . 2
PRINCIPAL ACTIVITIES . . . . . . . . I . 3
FINANCIAL RECORD . . . . . . . . . . . 11
THE YEAR'S INVESTMENTS . . . . . . . . . 12
FINANCIAL STATEMENTS
A Balance Sheet . . . . . . . . . . . 26
B Comparative Statement of Income and Expenses . . 27
C Statement of Operational Investments and Standbyand Underwriting Commitments . . . . . 28
D Notes to Financial Statements. . . . . . . 34
OPINION OF INDEPENDENT AUDITOR . . . . . . 36
OTHER APPENDICES
E Subscriptions to Capital Stock and Voting Power . 37
F Governors and Alternates . . . . . . . . 38
G Directors and Alternates and their Voting Power . 39
H Officers . . . . . . . . . . . . . 40
INTERNATIONAL FINANCE CORPORATION
1818 H Street, N. W.
Washington, D. C. 20433
September 30, 1963
My Dear Mr. Chairman:
The Seventh Annual Report of the International Finance
Corporation for the period July 1, 1962 to June 30, 1963, is
submitted to the Board of Governors by the Board of Direc-
tors herewith in accordance with Section 8 of the By-Laws of
the Corporation.
Sincerely yours,
GEORGE D. WOODS
President
Chairman, Board of Governzors
Interznational Finance Corporation
PRINCIPAL ACTIVITIES
The principal features of IFC'S operations during the year were theexercise of its new power to invest in capital shares, its progress in render-ing assistance to institutions for financing industrial development (often incombination with the World Bank), and its success in encouraging privateinvestors to join in its operations.
During the year, IFC made 11 commitments totaling $18 million forthe financing of private enterprises in 10 countries, including two standbycommitments amounting to $5.1 million. Seven of these commitmentsinvolved investments in industrial companies. The remaining four werein investments intended to strengthen industrial development financecompanies. The simultaneous participation of private investors in IFC's
new commitments, together with sales of already existing investments,amounted to a record total of $6.7 million. In addition, private investorstook up some $2.8 million of IFC'S standby and underwriting commitments.
The amendment to IFC'S charter, approved by the Board of Governorsin September 1961, permitting IFC to invest in the share capital of privateenterprises, has conferred a new flexibility on IFC operations. The sharecapital investments made by IFC relieve local enterprises of the exchangerisks associated with international loans; and the simplified forms ofinvestment that IFC is now able to make, in straight loan and straightequity form, for example, have the advantage of being both familiar andacceptable to entrepreneurs.
IFC and Capital Markets
Another benefit flowing from IFc's new ability to invest in equity isthe contribution that IFC can now make to the growth of capital marketsin the underdeveloped world. Through its ability to underwrite newissues of capital shares, through the help it can give by sponsoring inter-national underwriting syndicates, and through standby arrangements insupport of local issuing houses and underwriters, IFC is uniquely placed
3
among public international institutions to assist the strengthening of capital
markets and the growth of private entrepreneurship and investment.
IFC also leads the way for other investors by acting, in effect, as atrustee for private capital: by selling off its investments to private buyerswhenever suitable opportunity presents and, in countries where the habit
of industrial investment is not well established, by setting aside some ofits shareholdings for domestic purchasers who may appear once a newenterprise has begun to produce tangible results.
During the year covered in this Report, IFC continued to sell off itsown investments in industrial companies as suitable opportunity presented.The $6.7 million sold was composed of sales of parts of 13 investments.
Industrial Development Finance Companies
The operations undertaken in the past 12 months reflect the greater
range of investment activities now open to IFC. One example is to be seenin the Corporation's assistance to industrial financing companies. Since
the beginning of 1962, IFC has taken the lead for the World Bank Group-the Bank, the International Development Association and IFC itself-in
considering proposals for the establishment of new industrial develop-ment finance companies predominantly private in character, or for finan-
cial and technical assistance to such companies. During the year underreview, the Bank and IFC embarked on combined operations in thisfield: the Bank provided loans and IFC subscribed share capital to develop-ment corporations in Morocco, Pakistan and the Philippines. In a fourth
case, IFC agreed to invest in a newly established institution in Spain
without World Bank participation. Several other proposals, for invest-ments in new or existing institutions in Finland, Malaya, Nigeria, Thai-land, Turkey and Venezuela are at an advanced stage of consideration.
There is a growing recognition among governments and private
businessmen of the need for institutions of this kind, and since WorldWar II, they have made a growing contribution to economic development.
If soundly constituted and efficiently directed, they can foster the estab-lishment and growth of private industrial ventures, can mobilize local
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capital and can encourage a wider flow of investment. In many countries,these development companies are the only private organizations able toprovide medium and long-term finance. They can also offer technical andmanagerial assistance and can act as a channel through which private capitaland advanced technical knowledge from abroad can reach the new indus-tries of the developing countries.
The aim of IFC as part of the World Bank Group is to help to estab-lish or reorganize industrial finance companies on a broad basis of privateownership, and to see that they are both independently operated andfinancially viable. IFC supplies scarce share capital, which these institu-tions need both as a basis for their borrowings and to permit them tomake equity investments. And IFC actively helps these institutions toobtain participation in their share capital by private foreign investors.Examples of this policy are to be seen in the international support thatIFc helped to obtain for the first capital stock issue of the Private Develop-ment Corporation of the Philippines and in the response of foreigninvestors to the prospective reorganization of the Malayan IndustrialDevelopment Finance Limited. It is also to be observed in the increasedinterest of foreign investors in two Colombian financieras after IFC hadinvested in them.
On the other hand, IFC is also concerned to preserve the nationalcharacter of these institutions: it believes that domestic shareholdingsshould be as widely distributed as is consistent with the potentialities ofthe local capital market; if necessary, it is prepared to regard its ownshare participation as a domestic holding, and to agree to sell its sharesonly to domestic nationals, so as to ensure that these institutions are notcontrolled from abroad and that the autonomy of national interests ispreserved.
New Investments
Of IFC's $18 million of new commitments during the year, $11.4million were for investments in seven industrial enterprises. Threeincluded both share subscriptions and loans, one was a loan at a fixedinterest rate plus additional payments related to sales, two were in the
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form of loans carrying stock option rights, and the remaining operationwas a convertible debenture subscription. Each of the year's commit-ments in industrial finance companies was for share subscriptions, andone included a standby operation as well.
Investments in Industrial Finance Companies
The first combined World Bank-IFC assistance to industrial financecompanies was undertaken in the case of the Banque Nationale pour leDeveloppement Economique of Morocco (BNDE). IFC subscribed toshares valued at 7.5 million Moroccan dirhams (equivalent to $1.5million) out of a new stock issue of Dh 10 million by BNDE. Also aparticipant in the issue was an American bank which, together with banksfrom Belgium, France, Germany and Italy already was a shareholder inthe BNDE. As a consequence of the new issue, the Government was ableto reduce its holdings of BNDE stock to a minority position, thus fulfillingone of the requirements necessary for qualifying for combined WorldBank and IFC assistance.
IFC was one of the subscribers of an issue of 10 million rupees ofcapital stock by The Pakistan Industrial Credit and Investment Corpora-tion, Limited; the existing American, British, Canadian, German andJapanese shareholders waived part of their rights to the new issue so thatIFC could take up Rs. 2 million of shares (equivalent to $449,400).The World Bank had taken a leading role in 1957 in the planning andorganization of Picic, and has made loans to it amounting to nearly$50 million.
During the year, IFC also took part in the formation of two newinvestment institutions. The Corporation agreed to subscribe 17.5 mil-lion pesetas (equivalent to approximately $292,000) in shares of theBanco del Desarrollo Economico Espanol, S.A., an investment housebeing established in Spain by a leading Spanish commercial bank and byfinancial institutions in France, Germany, Italy, the United Kingdom andthe United States. In the case of the Private Development Corporationof the Philippines, IFC played a leading role both in organizing andfinancing a new industrial development bank. Joint World Bank-IFcmissions to the Philippines were instrumental in stirring the interest of
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the private business community in the idea of such an institution and inhelping business leaders to organize the enterprise; and JFC helped createwide interest among overseas investors in the new institution. Thereafterthe World Bank lent $15 million to PDCP; and IFC supported the sub-scription of PDCP's capital stock, amounting to 25 million pesos ($6.4million), by subscribing to shares in the amount of 800,000 pesos, byundertaking a standby commitment for further shares valued at 4.2million pesos, and by covering PDCP against failure of other subscribersto complete payment of the 60% remaining unpaid on their subscrip-tions. In addition to IFC and Philippine investors, the issue attracted 18overseas investors.
Investments in Industrial Companies
Among industrial investments was a $3.5 million loan and sharesubscription to NPK Engrais S.A.T., a new company being founded inTunisia by Swedish interests to establish a phosphate fertilizer plant atSfax. In Colombia, IFC lent $2 million to COLTEJER, one of the prin-cipal textile manufacturing companies in Latin America, and was ableto enlist the participation of banks in Germany, Switzerland and theUnited States in about seven-eighths of this total. IFC also participatedduring the year in the first sale of convertible debentures to be made bya Mexican company under new Mexican law: of a $5 million issueplaced outside Mexico by a New York house for Tubos de Acero deMexico, S.A., the sole manufacturer of seamless steel tube products inMexico, IFC purchased $250,000 outright and took up $150,000 moreunder a total standby commitment of $750,000.
A $3 million loan to Compania Manufacturera de Papeles y Cartones,S.A., of Chile, to help expand pulp and paper production, was the firstIFC investment to be made in combination with a loan from the Inter-American Development Bank (IDB). IFC and IDB also joined in financinga sodium sulphate plant to be built in Mexico by Quimica del Rey, S.A.;more than 80%, of IFC'S investment of $750,000 was taken up by privatefinancial institutions in Belgium, Italy, Switzerland and the United States.
Other industrial investments included a $898,000 loan and sharesubscription to Precision Bearings India Limited, a new company being
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established by Indian, Danish and American interests to produce ball androller bearings. A loan and share subscription, amounting to $269,529,was made to Productos de Concreto, S.A., of Costa Rica to expand itsproduction of concrete pipes, blocks and other products for which thereis a growing demand.
Profit and Loss on Investments
IFc has now made investments in some 59 enterprises in 24 differentcountries, to supply funds that otherwise would not have been availableon reasonable terms. It has made its commitments in combination withprivate entrepreneurs and private investors; and its investments are sub-ject to the same kind of risks and rewards as those of private investorsdoing business abroad. During the year, IFC made profits of $445,000from its sales of investments; at the same time it experienced default incertain payments due to it, as mentioned hereafter.
Profitable sales of investments, among others, induded the sale ofIFC's stock option in Adamjee Industries Ltd., a Pakistan company towhich IFC made a loan in 1958 to help finance the expansion of thecompany's textile manufacturing capacity. Other sales were made ofinvestments in Chile, Colombia, El Salvador and Mexico.
In Peru, two of IFC'S smaller investments, made in 1959 in Durisoldel Peru, S.A. and in Luren, S.A. and Ladrillos Calcareos, S.A., encounteredserious difficulties and were unable to meet their obligations to IFC. In eachof these cases, IFC is cooperating with the sponsors in search of a solutionto the problems of the companies either through reorganization or bymerger with related industrial interests. During the year, IFC also agreedto liquidation arrangements which will at completion result in a loss ofabout $100,000 in accrued interest and principal on its investment inRubbertex (Australia) Proprietary, Ltd., of which $272,250 in principalamount was outstanding on June 30, 1963.
IFC'S net income is allocated to a reserve against losses, and thisreserve rose to $17 million at June 30 from $13.3 million at the end ofthe previous fiscal year.
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Management and Administration
As of January 1, 1963, Mr. George D. Woods became President andChairman of the International Finance Corporation as well as of the
World Bank and the International Development Association. Mr. EugeneR. Black, who formerly had held these offices in the three institutions,
retired at the end of 1962.
Mr. Leonard Hall, who had been Director of Investments for Africa,
Asia and the Middle East, was appointed Adviser on Special Projects.He was succeeded by Mr. A. G. El Emary, who returned to the staff after
having been granted leave of absence to assist the Economic Commission
for Africa in drawing up plans for a projected African Development
Bank. Mr. William Diamond, of the staff of the World Bank, was
appointed to the post of Director of Development Bank Services, which
previously had been held by Mr. El Emary.
Mr. George L. Martin, Director of Marketing for the World Bank,
was appointed Director of Marketing for IFC as well. Mr. Howard
Johnson, formerly of United States Steel Corporation, became Man-ager of Portfolio Sales and Participations for both the Bank and IFC.
IFC continued to depend on the Bank's staff for a wide range of admin-
istrative and other services.
IFC Advisers
In June, Mr. Woods announced that Dr. Raffaele Mattioli, Chair-
man of the Banca Commerciale Italiana, had agreed to serve on the panel
of international investment bankers established in February 1962 to act
as advisers to IFC. Other members of the panel are Hermann J. Abs,
Director, Deutsche Bank A. G. Frankfurt; The Viscount Harcourt,
Managing Director, Morgan Grenfell & Co., London; Andre Meyer,
Senior Partner, Lazard Freres & Company, New York; and Baron Guy
de Rothschild, a partner in de Rothschild Freres, Paris.
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New Member Countries
Ten countries joined IFC during the year, increasing the subscribedcapital by $1,729,000. At the close of the year 73 countries were mem-bers of IFc and their paid-in subscriptions totaled $98,198,000. Thenew member countries are:
Country Subscriptions Date of joining
IVORY COAST ........................ $111,000 March 11, 1963KUWAIT ............................ 369,000 September 13, 1962MOROCCO .......................... 388,000 August 30, 1962SAUDI ARABIA ............ ........... 111,000 September 18, 1962SENEGAL ........................... 184,000 August 31, 1962SIERRA LEONE ....................... 83,000 September 10, 1962SOMALIA ........................... 83,000 August 31, 1962TANGANYIKA ............... ........ 184,000 September 10, 1962TOGO .... 83,000 September 4, 1962TUNISIA ............................ 133,000 July 25, 1962
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RESOURCES140
0 SALES AND REPAYMENTS
EARNINGS AND PROFITS 120
F I N A N C I A L RECORD * CAPITAL PAID IN160
The total of funds that have been available i*
to IFC for operational activities since the begin- 160nling of its operations grew during the year to r. . :$135.8 million, an increase of $15.0 million fromthe previous year. The details are as follows: 40
Fiscal Year 201962-63 Cumulative
(in millions) '57 '58 '59 '60 '61 '62 '63
Earnings ........... $ 3.3 $ 16.1Sales of investments 6.7 16.9Profits on sales of COMMITMENTS
investments ....... .4 .9 90Repayments on invest- COMMITMENTS
ments ............ 2.9 3.7 * DISBURSEMENTS 80Paid-in capital ....... 1.7 98.2 70
$15.0 $135.8 60
New investment commitments during the year 50were $18.0 million, including underwriting and 40
standby commitments of $5.1 million.30
Cumulative net commitments reached $80.0million. Gross commitments grew to $90.6 20
million, including $8.1 million in standby and 10
underwriting commitments. Of these, $7.8 mil-
lion have been cancelled, and $2.8 million of the '51 '58 '59 '60 '61 '62 63standby and underwriting commitments wereacquired by others.
Due in considerable part to the high volumeof investments sold, there was a small increase inthe amount of uncommitted funds available for FUNDS AVAILABLEoperational activities. The total as of June 30, 140
1963, was $55.8 million, as against $55.3 million 0 AVAILABLE FOR INVESTMENT
a year earlier. 0 DISBURSED OR COMMITTED 120
Net income for the year was $3.3 million. __ -Disbursements were $15.9 million, bringing _ 160
the cumulative total of funds disbursed as of -June 30, 1963, to $60.9 million.
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I 40Chart figures are as of June 30, _expressed in millions of U.S. dollars 20
'51 '59 '59 '60 '61 '62 '63
THE YEAR'S INVESTMENTS
C H I L E
$3 million-Compania Manufacturera de Papeles y Cartones, S.A.
In November IFC joined with the Inter-American Development Bankin the financing of a $32 million expansion program of Compania Manu-facturera de Papeles y Cartones, S.A., a privately owned Chilean stockcorporation and one of the largest pulp and paper manufacturers in LatinAmerica. The IFC investment amounts to $3 million; the IDB loan is forthe equivalent of $16 million. The balance of the financing requiredfor the expansion program is coming from suppliers' credits and fromthe firm's own capital resources.
Since it first began production at a plant at Puente Alto, near Santiago,in 1923, the company has considerably expanded its production capacity
by the acquisition of other plants, or the construction of new units in
various parts of Chile. In 1953 the company received a World Bank loan
of $20 million to help build a newsprint mill near Concepcion and achemical pulp plant at Laja, about 40 miles away.
The enlargement of the plant at Laja is considered of high priority
in Chile's ten-year development program. Over the past years Papeles yCartones has been able to meet virtually all of Chile's needs for newsprint,pulp and paper and produce a surplus for export, mostly to customers inLatin America. The expansion program is expected to make the produc-tion of pulp considerably more economical and strengthen the company's
competitive position in the export market. It is expected that up to140,000 tons of the production of the mill will be exported yearly to
Latin American countries, thereby making an important contribution to
Chile's foreign exchange earnings.IFC's investment of $3 million will help meet local expenditures
which the company could not finance from other sources on suitable terms.
The investment is for a term of 10 years and is represented by two series
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of unsecured notes-Series A in the amount of $2 million, and Series B
in the amount of $1 million. The Corporation has an option to purchase
2,857,142 shares of common stock payable either in dollars or Series B
notes.
COLOMBIA
$2 million-Compania Colombiana de Tejidos, S.A. (COLTEJER)
In July 1962, IFC made a commitment to invest $2 million in COLTEJER,
the largest cotton textile manufacturer in Latin America. Nearly seven-
eighths of the commitment was taken up by six United States and Euro-
pean banking houses.Founded in 1907, COLTEJER is owned by some 30,000 shareholders,
and employs about 8,200 persons at its textile and other plants, located
in the Medellin area. Together with its subsidiary companies, it forms an
integrated textile group; it spins, weaves and finishes cotton and synthetic
fabrics, and manufactures yarn and thread. COLTEJER supplies nearlyhalf of all cotton goods consumed in Colombia, and recently has begun
to export its products to other Latin American countries and to Africa.
IFC'S investment makes it possible to complete a program of modern-
ization and expansion, begun in 1959, that had been jeopardized by
subsequent difficulties in raising finance in Colombia's limited capital
market. The investment also serves to link banking houses on two
continents with one of the pioneer industrial companies of Colombia, and
channels both United States and European capital into Latin American
development at a time when broadened financial support is one of the
objectives of the Western Hemisphere nations cooperating in the Alliance
for Progress.The six participants, which together took up $1,725,000 of IFC's
commitment, are Chemical Overseas Finance Corporation; New World
Development Corporation Limited; Handelsfinanz A. G. (Zurich);Bankhaus Burkhardt & Co. (Essen); First Pennsylvania Overseas Finance
Corporation; and Continental International Finance Corporation.
The investment is represented by two series of unsecured notes,
Series A and Series B, each in the amount of $1,000,000. Series B notes
carry with them an option to purchase capital stock of the Company,
payable either in cash or in Series B notes.
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COSTA RICA
$269,529-Productos de Concreto, S.A.
This investment, IFC'S first in Costa Rica, has provided the country's
chief producer of concrete products with additional working capital andhas enabled it to expand its manufacturing capacity.
IFC's investment indudes a loan of $194,000 and the purchase of5,000 shares of common stock of 100 colones par value each (equivalent
to about $76,000). Bamerical International Financial Corporation, New
York, a wholly-owned subsidiary of the Bank of America, N.T. & S.A.,participated in the investment to the extent of one-third of the loanand the shares.
Productos de Concreto, originally formed in 1950, has grownrapidly and now accounts for about half of all sales of concrete products
in Costa Rica. It is thus an important supplier for construction projectsthroughout the country. In the last seven years, the company has found itdifficult to keep up with demand. The present three-year expansionprogram should enable Productos de Concreto to increase the value of itsoutput by nearly 50%, through greatly increased capacity for the manu-facture of concrete blocks, pre-stressed light poles, and pipe.
IFC'S investment in permanent working capital provides financing ofa kind extremely difficult to obtain in Costa Rica. The Corporation's
investment should make it possible for the company to attract new share-holders, and will thereby contribute to the development of a capitalmarket.
'' -. D iArt
Se9p .Ofi--Fme^;- ne.-.inEs india Limnited
In this investment, IFC joined with United States, Indian and European
interests to establish a new Indian company that will manufacture anti-
friction ball and roller bearings and components for use in industrialmachinery, tractors and vehicles, pumps, motors and other types of
engines. The output of the new company, expected to begin early nextyear with the completion of a plant at Baroda, will be sold entirely inIndia. It will help to meet the rising demand for bearings occasioned bythe growth in India's manufacturing industry, and will aid the country's
14
balance of payments by saving foreign exchange that otherwise would
have to be spent on imported bearings.
The American sponsor of the project is Norma-Hoffmann Bearings
Corporation, a division of Universal American Corporation of New York.Norma-Hoffmann is providing assistance in planning and constructing the
plant, and also will provide an eight-man management and production
staff during the initial period of operations. The originator of the project
is K. P. Joshi & Co. of Bombay, a family partnership which is an importer
and distributor of ball and roller bearings in India, and the third sponsoris East Asiatic Company (India) Private Ltd., also of Bombay, a subsidiary
of East Asiatic Company Ltd. of Denmark.The total cost of the Precision Bearings project is estimated at
$4,800,000, of which $2,200,000 will be share capital. Norma-Hoffmann
Bearings Corporation is participating in the shares of the new company
to the extent of $630,000, East Asiatic to the extent of $240,000 and
Joshi & Co. to the extent of $160,000. IFC is investing $898,000 in thenew company-$378,000 in shares and $520,000 in the form of a loan
repayable over a ten-year period. Irving Trust Company of New York is
participating in part of the IFC investment. Additional financing is being
provided by share and loan capital invested by the privately ownedIndustrial Credit and Investment Corporation of India Ltd. (icici), by theproceeds of a public offering, managed by icici, of shares in the new
company, and by loans from the United States Agency for InternationalDevelopment.
MEXICO
$1 million (including standby commitment)-Tubos de Acero deMexico, S.A. (TAMSA)
IFC made a commitment in October 1962 to participate in the sale of the
first issue of convertible debentures to be made by a Mexican company,
under a new Mexican law. The issue, made in February, consisted of
$5,000,000 of 71/2% convertible debentures due in 1975, and was made
by Tubos de Acero de Mexico, S.A. (TAMSA), Mexico's sole manufac-turer of seamless tubular steel products.
Kidder, Peabody & Co., of New York, negotiated the private place-
ment of the issue with a number of leading international institutional
15
investors. They included corporations, international investment affiliates
of American commercial banks, pension funds, fiduciary institutions
and IFC.
IFC committed itself at an early date in the preparation of the
financing to purchase outright $250,000 of the new convertible deben-
tures, and further undertook a standby arrangement under which it agreed
to purchase up to $750,000 principal amount of debentures not sold to
other investors. Under the standby IFC purchased $150,000 of the issue,
bringing its total investment in TAMSA to $400,000.
The 1975 debentures will be convertible into 821/4 shares of Series A
and 821/4 shares of Series B stock of TAMSA for each $1,000 principalamount of debentures. TAMSA plans to use the proceeds from the sale
of the debentures to finance its current expansion program and to improve
its working capital position.TAMSA was founded in January 1952 and began production late in
1954 upon completion of its plant near the port city of Vera Cruz.
It manufactures seamless pipe through the Mannesman-Calmes process,which employs steel ingots as raw material poured directly from the
furnaces. TAMSA makes its own ingots from steel scrap in its electric
furnaces.
$750,000-Quimica del Rey, S.A.
IFC's second joint investment operation with the Inter-American Develop-
ment Bank (IDB) was announced in April when IFC, IDB and the Bank of
America N.T. & S.A., of San Francisco, agreed to assist Quimica del Rey,S.A., in financing the construction of a $2,750,000 sodium sulphate plant
in Mexico. The IDB made a loan equivalent to $500,000 from its ordinary
resources, IFC agreed to invest $750,000, and the Bank of America
N.T. & S.A. lent $500,000 to finance a 10-mile railroad spur from the
plant to the Mexican National Railroad line.Quimica del Rey, S.A. is a subsidiary of Metalurgica Mexicana
Penoles, S.A. (Metmex), which is an important producer of lead, gold,
silver and other refined metals, and of zinc, lead and copper concentrates,
with headquarters in Monterrey, in the State of Nuevo Leon. Fifty-one
per cent of the stock of Metmex is owned by Mexican investors and the rest
by American Metal Climax, Inc., a United States company which is a pro-
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ducer of non-ferrous metals. Metmex will contribute $1,000,000 in equity
toward the financing of the project.
The new plant will use the brines from vast deposits in Laguna del
Rey, a dry lake in the State of Coahuila. It will have an initial production
capacity of 75,000 tons of crude salt cake and anhydrous sodium sulphate
a year, and will be designed to allow for eventual expansion to 100,000
tons. With the sulphate production, the company expects to supply alarge part of the needs of Mexico's growing detergent industry and of the
local glass industry; the output of sulphate also will enable the country to
dispense with imports, which in 1961 amounted to 13,000 tons. The firm
also expects to export a substantial part of its crude salt cake production.
The export production will be marketed by American Metal Climax, Inc.
At full capacity, the substitution of imports and expected exports would
save or earn annually about $1,500,000 in foreign exchange for Mexico.
The IFC investment is in the form of a loan represented by dollar
notes. Four institutions, one in the United States and three in Europe,
agreed to take up $602,000 of the loan, or more than 80% of the IFC
commitment. They are: Irving International Financing Corporation, a
subsidiary of the Irving Trust Company of New York; Banca Nazionale
del Lavoro of Rome, Italy, through its New York subsidiary The Italian
Economic Corporation (TIEC); Handelsfinanz A.G., of Zurich, Switzer-
land; and the Societe Financiere de Transports et d'Entreprises Indus-
trielles, S.A. (SOFINA) of Brussels, Belgium.
MOROCCO
$1,485,692-Banque Nationale pour le Developpement Economique (BNDE)
In January, IFC made a commitment to join the Government of Morocco,
private Moroccan investors and leading financial institutions in Europe
and the United States as a shareholder in the BNDE. This operation was
the first investment in which IFC had combined with its parent organiza-
tion, the World Bank, in a joint financing of an industrial finance com-
pany. The World Bank made a loan of $15 million, while IFC subscribed
to shares in the BNDE amounting to the equivalent of $1.5 million.BNDE was established by the Government of Morocco in 1959 as
part of a program to encourage investment and economic development.
It is the only institutional source of long-term industrial financing in
17
Morocco; it may also make medium-term loans, discount medium-termcredits made by commercial banks, establish enterprises on its own initia-tive, subscribe to shares in new or expanding enterprises, and guaranteeinvestments by others. From its inception in mid-1959 to mid-1962,BNDE had made direct loans amounting to 63 million dirhams. It hasassisted in the development of both public and private enterprises in thefields of electric power, transportation, agriculture, textiles, food andbeverages, chemicals, leather, paper, petroleum, refractory materials, carand truck assembly plants and other metallurgical works.
IFC'S investment was in the form of a subscription to Dh 7.5 millionin shares of the BNDE, part of a new stock issue to raise BNDE'S capitalby Dh 10 million (equivalent to $2 million) to Dh 30 million. Theremainder of the capital increase was subscribed by the Moroccan Govern-ment, which took up Dh 2 million and the Morgan Guaranty Inter-national Finance Corporation of New York, already a shareholder,which took up Dh 500,000. BNDE already included among its share-holders other institutions domiciled in France, Italy, the Federal Republicof Germany and Belgium. The French group consists of a number ofautonomous financial agencies of the French Government, includingCaisse de Depots et Consignations and Caisse Centrale de CooperationEconomique. The other institutions are well known banks, as follows:in Italy, Banca Nazionale del Lavoro, Istituto Mobiliare Italiano andBanca Commerciale Italiana; in the Federal Republic of Germany,Deutsche Bank A.G., Dresdner Bank, Commerzbank and the West-falenbank; and in Belgium, Banque Lambert. Shares are held in Moroccoby the Government, which continues to be the largest single shareholder,by Moroccan nationals and by 18 Moroccan subsidiaries of foreign banksand insurance companies.
PA KiSTAN
S449.400--The -ak:stan industrna Credit and investment Corporation
Limited kPICIC)
This investment took the form of a subscription by IFC for 200,000ordinary shares of Picic at 107% of their par value of Rs.10 per share,the 7% premium being in recognition of a market price of about Rs. 11.50
per share. Thus the cost of the shares to IFC was Rs.2,140,000, equivalent
18
to $449,400. The premium of Rs.140,000 has been added to Picic's
reserves.
PICIC was organized in 1957 by private Pakistani and foreign
investors. The World Bank took a leading role in its planning and organ-
ization, and has made loans to the Corporation amounting to nearly $50
million, including a loan of $20 million in February 1963. IFC'S par-
ticipation in Picic's share capital places IFC and the World Bank incomplementary roles, with JFC helping to broaden the capital base of
Picic while the Bank helps meet its need for borrowed funds. Pakistan
interests hold 60%1o of the share capital of Picic and the balance is dis-
tributed among British, Canadian, German, Japanese and United States
holders, as well as IFC.
Picic is the main private institution in Pakistan providing long and
medium-term industrial financing. In addition to investing in new and
expanding industries, PicIC arranges investment by others through under-
writing public offerings of securities and through private placements of
securities with investors both in Pakistan and abroad. It also helps indus-trial companies in Pakistan to obtain managerial, technical and administra-
tive services.By the end of 1962, PIcic had approved 311 loans amounting to
Rs.401 million (equivalent to $84.2 million) to a variety of industrial
enterprises. In addition, at the end of 1962, PICIC held Rs.14 million of
shares in industrial companies and had underwritten offerings of Rs.15
million. It had also helped to find $10 million of foreign investment for
Pakistani enterprises, comprising $7.5 million in loans and $2.5 million
in equity capital.
HFLI P NES
I4 3-.900i bs',:dhvAarmXtrne. Corpo-at - r&
In February, the World Bank and lFC announced that they had agreed
to provide loan and share capital for the Private Development Corporation
of the Philippines, a new privately owned corporation organized with the
assistance of the World Bank and IFC to help the expansion of private
industry in the Philippines.PDCP will make long and medium-term loans to privately controlled
industry and other productive enterprises, invest in the equity of private
19
enterprises, underwrite new issues of securities, guarantee loans from other
investment sources, and provide managerial and technical advice and
assistance. It will sell its investments whenever it can do so on satisfactoryterms, thereby revolving its own capital for further investment.
PDCP was established in February 1963 through subscription by theoriginal incorporators for 500,000 Class A shares. In June, PDCP suc-
cessfully closed a public offering of the remainder of its authorized capital
stock. The offering consisted of 1,250,000 Class A shares (for offering
to Philippine citizens, to corporations with at least 60%'o of their shares
owned by Philippine citizens and to IFC) and 750,000 Class B sharesavailable for subscription without restriction. Both classes of shares were
offered at the par value of 10 pesos.
IFC undertook to subscribe 500,000 Class A shares, with a commit-ment to take 80,000 shares initially and an additional 420,000 shares on astandby basis, depending on the response of Philippine investors to theoffer.
The success of the issue has relieved IFC of this standby commit-ment, thus reducing its investment to 800,000 pesos, equivalent to$205,155. However, the Class A and Class B shares, induding the 500,000Class A shares subscribed by the original incorporators, have been paidonly to the extent of 40% and IFC has agreed, in the event of default
by any subscriber in the subsequent payments extending to March 20,1964, to pay the defaulted balance (a maximum of 14,520,000 pesos)in return for the unpaid shares if no more favorable bid is received fromothers.
The Class B shares were subscribed principally by 18 leading financialinstitutions outside the Philippines. This is the largest group of inter-national investors with which IFC has ever been associated in an initialstock issue, and is one of the largest ever to participate in the capital ofan industrial finance company.
PDCP now has total resources of 111 million pesos, including a loan
of $15 million from the World Bank, a loan of 27.5 million pesos fromthe U.S. Agency for International Development, subscription by foundingshareholders and the proceeds of the stock issue.
The principal overseas participants in the PDcP included 14 Ameri-can investment and banking institutions, 2 British banks, a German bank
and a Japanese bank as follows:
20
The American Express Company, Inc. The Hongkong and Shanghai BankingBank of America N.T. & S.A. CorporationThe Bank of Tokyo, Ltd. Irving International FinancingBankers International Financing Corporation
Company, Inc. Lehman BrothersBoston Overseas Financial Corporation Manufacturers Hanover InternationalBoTon Ovaerseas Financial Corporation Finance CorporationThe Chartered Bank Morgan Guaranty International FinanceChemical International Finance Ltd. CorporationContinental International Finance New York Hanseatic Corporation
Corporation Philadelphia International InvestmentDeutsche Bank A.G. CorporationFirst National City Overseas Wells Fargo Bank International
Investment Corporation Corporation
SPAIN
$291,667-Banco del Desarrollo Economico Espanol, S.A. (BANDESCO)
In January, IFC made a commitment to join with Banco Espanol de
Credito, a leading Spanish commercial bank, and with a number of
other financial institutions in France, Germany, Italy, the United Kingdom
and the United States, in establishing a new industrial investment institu-
tion in Spain. With strong Spanish sponsorship, and international con-nections, BANDESCO should add significantly to the resources of the Spanish
capital market at a time when improved industrial financing is an important
need for the country's economic development.
Banco Espanol de Credito is to be the largest single shareholder in
BANDESCO, and its dose affiliate, Banco Guipuzcoano, also will hold
stock. IFC'S participation in the share capital will be 17.5 million pesetas.
The other shareholders will be Banca Commerciale Italiana, of Italy;
Barclays Bank D.C.O., of the United Kingdom; Deutsche Bank A.G., of
the Federal Republic of Germany; Morgan Guaranty International Finance
Corporation, a subsidiary of Morgan Guaranty Trust Company of NewYork; and de Rothschild Freres, of France.
The principal long-term objective of BANDESCO will be to assist in
broadening the capital market in Spain. An economic survey mission
organized by the World Bank at the request of the Spanish Government
conduded that a broadening of the market, and improved access to medium
and long-term capital, was the most pressing financial need of Spanish
industry. BANDESCO will underwrite and distribute shares of industrial
21
companies, and will sell its own investments to other private investorswhenever it can do so on satisfactory terms and with due regard to theinterest of other parties in the investment sold. It will be the new bank'spolicy to choose projects which offer the best prospects in this regard, andwhich will make a contribution to the industrial growth of Spain.BANDESCO will also provide technical advice on financing and manage-ment to industrial enterprises.
TUNISIA
$3.5 million-NPK Engrais S.A.T.
With this investment IFC helped to complete the financing of a new$14 million project for the construction, equipment and operation of atriple superphosphate fertilizer plant at the Port of Sfax. The IFC com-mitment, its first in North Africa, is in the form of a mixed loan andshare investment in the amount of $3.5 million.
Associated in the financing of the Company, NPK Engrais S.A.T., areAktiebolaget Forenade Superfosfatfabriker of Helsingborg, Sweden, theoriginal sponsor of the project and the leading Swedish producer ofsulphuric and phosphoric acids, and Freeport International Incorporated,New York, an investment subsidiary of a major American sulphur pro-ducer. Forenade agreed to buy $3.5 million of NPK shares and to lendthe company $2,150,000; Freeport International undertook to purchase$1 million of shares and lend $600,000 and the IFC commitment was. forthe purchase of $1.5 million of shares and a loan of $2 million. Theremaining funds to complete the financing are expected to come frommortgage loans and suppliers' credits negotiated by the NPK. A uniquefeature of the company's capitalization is that each of the participants inthis financing has agreed to reserve one-tenth of its NPK stock for sale toTunisian private investors, initially at a price of par.
NPK's plant will have an annual capacity of approximately 150,000metric tons of triple superphosphate, to be produced from local depositsof rock phosphate. It will begin operations in 1965, and the productionwill be exported from Tunisia to growing markets abroad, partly underlong-term contracts with Forenade for distribution in Sweden. It isexpected that much of the remainder will be sold in the developingcountries of Africa and Asia.
22
Dutch, Swedish and American interests are participating in IFC'S partof the investment. New World Development Corporation Limited, an
affiliate of the Philadelphia National Bank, and Algemene Commerciele
Associatie N.V., a Dutch banking house closely connected with HambrosBank in London, have agreed to take up NPK stock in the aggregate amountof about $254,000; and New World Development Corporation, theBank of America N.T. & S.A. and Svenska Handelsbanken have agreedto take up a total of $572,000 of IFC's loan to NPK.
23
appendices
FINANCIAL STATEMENTS
Balance Sheet . . . . . . . . . . . . A
Comparative Statement of Income and Expenses . . B
Statement of Operational Investments and Standby
and Underwriting Commitments . . . . . C
Notes to Financial Statements . . . . . . . D
OPINION OF INDEPENDENT AUDITOR
OTHER APPENDICES
Subscriptions to Capital Stock and Voting Power E
Governors and Alternates . . . . . . . . F
Directors and Altemates and their Voting Power .. G
Officers . . . . . . . . . . . . . H
25
APPENDIX A
BALANCE SHEET
JUNE 30, 1963
EXPRESSED IN UNITED STATES CURRENCY-See Notes to Financial Statements, Appendix D
ASSETS
DUE FROM BANKS ....................................... $ 131,433
INVESTMENTS
United States Government obligations (at cost or amortizedcost) Face amount $59,636,000 ....................... $ 59,328,049
Time deposits maturing within six months-United Statesdollars ............................................. 12,000,000
Accrued interest ...................................... 820,640 72,148,689
EFFECTIVE LOANS AND EQUITY INVESTMENTS HELD BY CORPO-
RATION (See Appendix C-Note B(Including undisbursed balance of $9,399,357)
Loans ............................................... $ 42,354,234Equity (at cost) ....................................... 8,839,041 51,193,275
ACCRUED INCOME ON LOANS, EQUITY INVESTMENTS AND UNDER-
WRITING COMMITMENTS-Note B ...................... 940,171
RECEIVABLE FROM PURCHASERS ON ACCOUNT OF EFFECTIVE
LOANS AND EQUITY INVESTMENTS AGREED TO BE SOLD
(Including undisbursed balance of $417,000) ............ 703,734
OTHER AssETs ............... 64,623
TOTAL ASSETS ............................... $125,181,925
. !1 i t i F V rS E A, N D C A P I T A L
LIABILITIES
Accounts payable and other liabilities ................... $ 164,862Undisbursed balance of effective loans and equity invest-
ment agreements (See Appendix C)Held by Corporation .............................. $ 9,399,357Agreed to be sold ................. 417,000 9,816,357
RESERVE AGAINST LOSSEs-Note C ........ 17,002,706
CAPITAL
Capital stock-Note DAuthorized 100,000 shares of $1,000 par value each
Subscribed 98,198 shares ........................ 98,198,000
OUTSTANDING STANDBY COMMITMENTS-
Note E.................................... $3,723,077
TOTAL LIABILITIES, RESERVE ANDCAPITAL ................................... $125,181,925
26
APPENDIX B
COMPARATIVE STATEMENT OF INCOME AND EXPENSES
FOR THE FISCAL YEARS ENDED JUNE 30, 1962 AND JUNE 30, 1963
EXPRESSED IN UNITED STATES CURRENCY-See Notes to Financial Statements, Appendix D
July l-June 30
1961-1962 1962-1963
INCOME
Income from United States Government obligations and timedeposits ............................................. $2,318,299 $2,367,154
Income from loans, equity investments and standby and under-writing commitments .................................. 2,279,216 3,105,252
Other income .......................................... 2,430 3,312
GRoss INCOME .................................. $4,599,945 $5,475,718
EXPENSES
Administrative expenses:
Personal services ...................................... $1,100,793 $1,215,939
Contributions to staff benefits ....... ................... 141,500 170,130
Fees and compensation ................................ 141,988 100,624
Representation ....................................... 29,235 15,070
Travel ............................................... 284,765 345,252
Supplies and material ................................. 18,668 15,675
Office occupancy ..................................... 121,104 124,314
Communication services ............................... 54,222 58,566
Furniture and equipment .............................. 20,052 45,976
Books and library services ............................. 18,117 19,358
Printing ............................................. 30,459 36,008
Insurance ............................................ 8,376 14,426
Other expenses ....................................... 655 574
GROSs EXPENSES ................................ $1,969,934 $2,161,912
NET INCOME-Allocated to Reserve Against Losses-Note C ... $2,630,011 $3,313,806
27
APPENDIX C
STATEMENT OF OPERATIONAL INVESTMENTS AND
JUNE 30,
EXPRESSED IN UNITED STATES CURRENCY-
Operationalinvestments Acquisition
and by others ofOriginal principal amount standby and securities
underwriting Outstanding covered byStandby and commitments standby and standby and Cancella-
COUNTRY Operational underwriting not yet underwriting underwriting tions andand Obligor investments commitments effectivel commitments commitments terminations
ARGENTINAACINDAR INDUSTRIA ARGENTINA
DE ACEROS, S.A ................. $ 3,660,000 $ - $ - $ - $ - $ -PAPELERA RIO PARANA, S.A ......... 3,000,000 - - - - 3,000,000FABRICA ARGENTINA DE
ENGRANAJES, S.A.I.C ............. 1,500,000 - - - - -
PASA, PETROQUIMICAARGENTINA, S.A.LC .............. 3,050,000 -- - - -
TOTAL .................. 11,210,000 - - - - 3,000,000
AUSTRALIADUNCAN'S HOLDINGS, LTD .......... 660,000 -RUBBERTEX (AUSTRALIA)
PROPRIETARY, LTD .............. 315,000
TOTAL .................. 975,000
BRAZILSIEMENS DO BRASIL CIA.
DE ELETRICIDADE ............... 2,000,000 - - - - 1,000,000OLINKRAFT, S.A. CELULOSE E PAPEL. . 1,200,000 - - - - 243.000D.L.R. PLASTICOS DO BRASIL, S.A ..... 450,000 - - - - -
WILLYS-OVERLAND DO BRASIL, S.A.,INDUSTRIA E COMERCIO .......... 2,450,000 - - - - -
COMPANHIA MINEIRA DECIMENTO PORTLAND, S.A .......... 1,200,000 - - - - -
CHAMPION CELULOSE, S.A ........... 4,000,000 -- - - -
TOTAL .................. 11,300,000 - - - - 1,243,000
CHILEEMPRESA MINERA DE MANTOS
BLANCOS, S.A ................... 3,100,000 - -- - -
COMPANIA MOLINOS Y FIDEOS CAROZZI 1,500,000 - - - - -
CEMENTOS BIO-BIO, S.A ............. 1,200,000 - - - - -
COMPANIA MANUFACTURERA DEPAPELES Y CARTONES, S.A ......... 3,000,000 - 3,000,000 - - -
TOTAL .................. 8,800,000 - 3,000,000 - - -
COLOMBIALAMINAS DEL CARIBE, S.A ........... 500,000 - - - -
FABRICA DE GALLETAS YCONFITES NOEL, S.A .............. 1,000,000 - - - - -
ENVASES COLOMBIANOS, S.A ......... 700,000 - - - - 400,000BERRY, SELVEY Y CIA, S.A ........... 170,000 - - - - -ELECTROMANUFACTURAS, S.A ........ 500,000 - - 289,625CORPORACION FINANCIERA COLOM-
BIANA DE DESARROLLO INDUSTRIAL 2,023,730 - - - - 514CORPORACION FINANCIERA NACIONAL 2,042,000 - - - - 34COMPANIA COLOMBIANA DE TEJIDOS, S.A. 2,000,000 - - - - -
TOTAL .................. 8,935,730 - - - - 690,173
COSTA RICAPRODUCTOS DE CONCRETO, S.A ...... 269,529 - - - - -
28
APPENDIX C
STANDBY AND UNDERWRITING COMMITMENTS
1 9 6 3
See Notes to Financial Statements, Appendix D
Undisbursedbalance ofeffective
Principal Loans and Loans loans Held by Corporationrepayments equity sold converted Principal and equity
to or agreed into amount investment Total loansCorporation to be sold equity disbursed agreements
2Loans Equity and equity
$ - $ - $ - $ 3,660,000 $ - $ 3,660,000 S = $ 3,660,000
750,000 750,000 1,500,000 - 1,500,000
305,000 2,745,000 3,050,000 3,050,000
4,715,000 3,495,000 8,210,000 - 8,210,000
200,000 - - 660,000 - 460,000 - 460,000
42,750 - - 315,000 - 272,250 - 272,250
242,750 - - 975,000 - 732,250 - 732,250
140,000 860,000 - 1,000,000 - - -- 957,000 - 957,000 - - - -
25,000 - - 450,000 - 425,000 425,000
350,000 - - 2,450,000 - 2,100,000 - 2,100,000
- 1,200,000 - 1,200,000 - - - -- 3,175,000 - 4,000,000 - 825,000 - 825,000
515,000 6,192,000 - 10,057,000 - 3,350,000 - 3,350,000
- 350,000 - 3,100,000 - 2,750,000 - 2,750,00075,000 - - 1,500,000 - 1,425,000 - 1,425,000
- - - 1,200,000 - 1,200,000 - 1,200,000
- Note 6 - _ - - - -
75,000 350,000 - 5,800,000 - 5,375,000 - 5,375,000
122,000 - - 500,000 - 378,000 - 378,000
500,000 - - 1,000,000 - 500,000 - 500,000203,571 96,429 - 300,000 - - - -
- - - 170,000 - 170,000 Note 3 170,000- 210,375 - 210,375 - - - -
- 1,999,486 2,023,216 - - 2,023,216 2,023,216- - 1,819,605 2,041,966 - 180,361 1,861,605 2,041,9667,000 1,725,000 - 2,000,000 - 268,000 - 268,000
832,571 2,031,804 3,819,091 8,245,557 - 1,496,361 3,884,821 5,381,182
- 89,848 - 269,529 - 129,333 50,348 179,681
29
APPENDIX C
STATEMENT OF OPERATIONAL INVESTMENTS AND
JUNE 30,
EXPRESSED IN UNITED STATES CURRENCY-
Operationalinvestments Acquisition
and by others ofOriginal principal amount standby and securities
underwriting Outstanding covered byStandby and commitments standby and standby and Cancella-
COUNTRY Operational underwriting not yet underwriting underwriting tions andand Obligor investments commitments effectivel commitments commitments terminations
EL SALVADORINDUSTRIAS TEXTILES, S.A ........... $ 140,000 $ - $ - $ - $ - $ -
FINLANDOY KUTOMOTUOTE AB, TRICOL OY,
TOLI OY ....................... 156,000RAUMA-REPOLA OY ........ ........ 1,875,000
TOTAL .................. 2,031,000 -
GREECEAEVOL INDUSTRIAL COMPANY
OF ORGANIC FERTILIZERS, S.A.. 600,000 - 600,000
GUATEMALAINDUSTRIA HARINERA
GUATEMALTECA, S.A ............. 200,000 - -
INDIAREPUBLIC FORGE COMPANY, LTD..... 1,500,000 - - - - 1,500,000KIRLOSKAR OIL ENGINES, LTD ....... 850,000 - - - - 850,000ASSAM SILLIMANITE, LTD ............ 1,365,000 - - - -KSB PUMPS, LTD .................. 210,000 - - - - -
PRECISION BEARINGS INDIA, LTD..... 898,000 - 898,000 - - -
TOTAL .................. 4,823,000 - 898,000 - - 2,350,000
IRANSHERKATE SAHAMI KAHKASHAN ...... 300,000 - - - -
tTALYMAGRINI MERIDIONALE, S.P.A ........ 960,000 - - - -
JAMAICAJAMAICA PRE-MIX, LTD ............. 224,000 - - - -
MEXICOINDUSTRIAS PERFECT CIRCLE, S.A... 800,000 - - - - 200,000BRISTOL DE MEXICO, S.A ............ 520,000 - - - - -ACERO SOLAR, S.A ................. 280,000 - - - - -COMPANIA FUNDIDORA DE FIERRO Y
ACERO DE MONTERREY, S.A ........ 1 ,127,302 2,944,856 - - 1,782,206 -TUBOS DE ACERO DE MEXICO, S.A..... 250,000 750,000 - - 600,000 -QUIMICA DEL REY, S.A .............. 750,000 - 750,000 - - -
TOTAL ................ 3,727,302 3,694,856 750,000 - 2,382,206 200,000
MOROCCOBANQUE NATIONALE POUR LE
DEVELOPPEMENT ECONOMIQUE..... 1,485,692 - - - - -
30
APPENDIX C
STANDBY AND UNDERWRITING COMMITMENTS
(CONTINUED')1963
See Notes to Financial Statements, Appendix D
Undisbursedbalance ofeffective
Principal Loans and Loans loans Held by Corporationrepayments equity sold converted Principal and equity
to or agreed into amount investment rotal loansCorporation to be sold equity disbursed agreements
2Loans Equity and equity
$ 140,000 $ - _ $140,000 $ - $ - $ - $
24,000 - - 156,000 - 132,000 - 132,000495,000 1,290,000 - 1,875,000 - 90,000 - 90,000
519,000 1,290,000 - 2,031,000 - 222,000 - 222,000
33,000 - - 200,000 - 167,000 - 167,000
- -- 886,276 478,724 1,365,000 = 1,365,000_ -_- 200,000 10,000 210,000 - 210,000
Note 5 - - - - - -
- - - 1,086,276 488,724 1,575,000 - 1,575,000
50,000 - - 300,000 - 250,000 - 250,000
- - - 960,000 - 960,000 - 960,000
- -- 224,000 - 224,000 - 224,000
180,000 - - 600,000 - 420,000 - 420,000240,000 - - 520,000 - 280,000 - 280,000
- 280,000 - 280,000 - - - -
- 1,224,300 - 2,289,952 - - 1,065,652 1,065,652- - - 400,000 - 400,000 - 400,000- Note 4 - - - - - -
420,000 1,504,300 - 4,089,952 - 1,100,000 1,065,652 2,165,652
- - - 374,140 1,111,552 - 1,485,692 1,485,692
31
APPENDIX C
STATEMENT OF OPERATIONAL INVESTMENTS AND
JUNE 30,
EXPRESSED IN UNITED STATES CURRENCY-
Operationalinvestments Acquisition
and by others ofOriginal principal amount standby and securities
underwriting Outstanding covered byStandby and commitments standby and standby and Cancella-
COUNTRY Operational underwriting not yet underwriting underwriting tions andand Obligor investments commitments effectivel commitments commitments terminations
PAKISTANSTEEL CORPORATION OF PAKISTAN, LTD. $ 630,000 $ - $ - $ - $ - $ -ADAMJEE INDUSTRIES, LTD .......... 750,000 - - - - 295ISMAIL CEMENT INDUSTRIES, LTD ..... 4,000,000 -- - - -THE PAKISTAN INDUSTRIAL CREDIT AND
INVESTMENT CORPORATION, LTD.. 449,400 -- - - -
TOTAL .................. 5,829,400 - - - - 295
PERUINDUSTRIAS REUNIDAS, S.A .......... 250,000 -- - - -LUREN, S.A. AND LADRILLOS
CALCAREOS, S.A ................. 280,000 - - - - -DURISOL DEL PERU, S.A ............. 300,000 - - - - -FERTILIZANTES SINTETICOS, S.A ...... 4,083,290 - - - -CEMENTO ANDINO, S.A .............. 2,400,000 - - - - -
TOTAL .................. 7,313,290 - - - - -
PHILIPPINESPRIVATE DEVELOPMENT CORPORATION
OF THE PHILIPPINES ...... ....... - 4,359,001 - 3,723,077 430,769 -
SPAINFABRICA ESPANOLA MAGNETOS, S.A.. . 3,001,815 - - - -BANCO DEL DESARROLLO ECONOMICO
ESPANOL, S.A ................... 291,667 - 291,667 - - -
TOTAL .................. 3,293,482 - 291,667 - - -
TANGANYIKAKILOMBERO SUGAR COMPANY, LTD.. . 2,800,000 - - - - -
THAILANDTHE CONCRETE PRODUCTS AND
AGGREGATE COMPANY, LTD ....... 300,000 - - - - -
TUNISIANPK ENGRAIS, S.A.T ................ 3,500,000 - - - - -
VENEZUELASIDERURGICA VENEZOLANA, S.A. 3,000,000 - - - - -DIABLITOS VENEZOLANOS, C.A ....... 500,000 - - - - 324,000
TOTAL .................. 3,500,000 - - - - 324,000
GRAND TOTAL ........... $82,517,425 $8,053,857 $5,539,667 $3,723,077 $2,812,975 $7,807,468
$90,571,282
Note 1 - In these cases, certain legal formalities must be completed and other conditions fulfilled before fund.may be withdrawn on account of the investment or before disbursements are required for commitmentunderwritten.
Note 2- This includes $417,000 of effective loans and equity investment agreements which the Corporation ha.agreed to sell.
Note 3 - In these cases, the Corporation has received equity shares at no cost.Note 4 - The Corporation has agreed to sell $602,000 of this investment.Note 5 - The Corporation has agreed to sell $260,000 of this investment.Note 6 - The Corporation has agreed to sell $225,000 of this investment.
32
APPENDIX C
STANDBY AND UNDERWRITING COMMITMENTS(CONTINUED)
See Notes to Financial Statements, Appendix D
Undisbursedbalance ofeffectiv
Principal Loans and Loans loans Held by Corporationrepayments equity sold converted Principal and equdty
to or agreed into amount investment Total loansCorporation to be sold equity disbursed agreements
2Loans Equity and equity
$ - $ - $ - $ 630,000 $ 630,000 $ - $ 630,000449,705 - - 749,705 - 300,000 - 300,000
- 172,000 - 3,045,581 954,419 3,828,000 - 3,828,000
- - - 449,400 - - 449,400 449,400
449,705 172,000 - 4,874,686 954,419 4,758,000 449,400 5,207,400
50,000 - - 250,000 - 200,000 - 200,000
- - - 280,000 - 280,000 - 280,000- - - 300,000 - 300,000 - 300,000- 2,264,000 - 4,083,290 - 1,819,290 - 1,819,290- - - 1,800,000 600,000 2,400,000 - 2,400,000
50,000 2,264,000 - 6,713,290 600,000 4,999,290 - 4,999,290
- - - 82,078 123,077 - 205,155 205,155
597,182 - 3,001,815 - 1,953,000 451,633 2,404,633
597,182 - 3,001,815 - 1,953,000 451,633 2,404,633
-- - 2,800,000 - 2,800,000 Note 3 2,800,000
300,000 - 300,000 - - - -
- 825,660 - 456,415 3,043,585 1,428,000 1,246,340 2,674,340
375,000 - - 3,000,000 - 2,625,000 - 2,625,000- 176,000 - 176,000 - - - -
375,000 176,000 - 3,176,000 - 2,625,000 - 2,625,000
$3,702,026 $15,792,794 $3,819,091 $60,871,738 $9,816,357 $42,354,234 $8,839,041 $51,193,275
SUMMARY OF CURRENCIES IN WHICH EFFECTIVE LOANS AND EQUITY INVESTMENTSHELD BY CORPORATION ARE DENOMINATED
(EXPRESSED IN UNITED STATES CURRENCY)
Currency Loans Equity (at cost)
Colombian pesos . . . . . . . . . . . $ 180,361 $3,884,821Costa Rican colones . . . . . . . . . . - 50,348Italian lire . . . 480,000 -Mexican pesos .140,000 1,065,652Moroccan dirhams . . . . . . . . . . . - 1,485,692Pakistan rupees . . . . . - 449,400Philippine pesos. . . . - 205,155Pounds sterling . . . . 1,400,000Spanish pesetas. . . . 451,633Tunisian dinars . . . . . . . . . . . . - 1.246,340United States dollars . . . . . . . . . . 40,153,873 -
$42,354,234 $8,839,041
33
APPENDIX D
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1963
NOTE A NOTE C
The undisbursed balances of commitments made Pursuant to action of the Directors, the net in-in currencies other than United States dollars come of the Corporation has been allocated to ahave been translated into United States dollars reserve against losses; and the future net incomeat the par values as specified in the "Schedule of of the Corporation will, until further action byPar Values", published by the International the Directors or the Board of Governors, beMonetary Fund, or in the case of Philippine allocated to this reserve. During the fiscal yearpesos, at the rate of 3.90 to I United States dollar. this reserve has also been credited with $445,318,
representing net profit on sales of loans andAmounts disbursed and/or repayable in curren- equity investments and charged with $61,231,cies other than United States dollars have been representing deferrable interest accrued in pre-translated into United States dollars at the vious fiscal years and cancelled pursuant to thefollowing rates: revised terms of an Investment Agreement.
Currency UnitCurrency per U.S. dollar In December 1962, the Corporation gave notice
to Rubbertex (Australia) Proprietary Limited, aColombian pesos . . . . 8.939 wholly owned subsidiary of Rubbertex Industries
Italian lire . . . . . . . 6625000 Limited, declaring the full principal amount ofMexican pesos . . . . . 12.491 all notes outstanding under the investment agree-Moroccan dirhams . . . . . 5.011 ment, $272,250, to be due and payable immedi-Pakistan rupees . 14762 ately. Interest has not been paid since February 1,Philippine pesos . . . . . 32899 1962. Hardie Rubber Company Pty. Limited, ap-Pounds sterling . . . . . 0.357 proached the shareholders of Rubbertex Indus-Spanish pesetas . . . . . 059783 tries Limited with an offer to take over the com-Tunisian dinars . . . . . . 0.417 pany on the following terms applicable to the
Corporation: Payment of 65% of the notes out-Accrued interest, commitment and other charges standing plus 65%o of accrued interest to the datereceivable in currencies other than United States of acceptance of the takeover offer by the share-dollars, have been translated into United States holders and the performance of other terms anddollars at the approximate market rates. conditions of the Takeover Scheme. In addition,
Hardie Rubber Company offered 1,600 AustralianNo representation is made that any currency pounds for the Corporation's options to subscribeheld by the Corporation is convertible into any for ordinary shares of Rubbertex Industriesother currency at any rate or rates. Limited. The Corporation agreed to these terms
and has been advised that the Takeover SchemeN 0 T E B became effective July 19, 1963.
The principal disbursed and outstanding on Durisol del Peru, S.A., has not paid interest dueeffective loans and equity investments and the since December 15, 1961 on $300,000 principalaccruals for interest, commitment charge and outstanding. The Company's plant has beenother charges on such loans and equity invest- closed for over a year. The amount of recovery,ments and on underwriting commitments are if any, in respect of this investment and the inter-denominated in United States dollars except the est accrued thereon cannot presently be deter-following amounts for which the dollar equiva- mined.lent is shown: Luren, S.A. and Ladrillos Calcareos, S.A., have
Principal outstanding . . . . $8,606,189 not paid interest due since October 15, 1962 onAccrued interest, commitment and $280,000 principal outstanding and also failed to
other charges . . . . . . 326,954 make the first principal repayment of $20,000 dueTotal . . . . . . . $8,933,143 April 15, 1963. During 1961 and 1962 the opera-
tions of the Companies resulted in losses. The
34
APPENDIX D
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
JUNE 30, 1963
amount of recovery, if any, in respect of this in- shares was subscribed at par (10 Philippine pesosvestment and the interest accrued thereon cannot per share) of which 80,000 shares were subscribedpresently be determined. by the Corporation. Of the total subscription
price, 40% was paid at the time of subscriptionand 60% is to be paid in four equal installments
N OT E D at intervals of 60 days after allotment. If anysubscriber fails to pay the 60% part of the sub-
On April 25, 1963, the Board of Directors recom- scription price, the Corporation has agreed, undermended to the Board of Governors that the Cor- certain circumstances, to pay the amount of un-poration's authorized capital be increased from paid subscription price in consideration for theS100 million to $110 million. The Board of transfer to it of the shares for which such pay-Governors has until September 3, 1963 to vote ment is made.on the recommended increase.
GENERALNOTE E
The operational investments are represented byIn accordance with the terms of an agreement, both loans and equity. In addition, in certainthe Corporation gave certain standby commit- investments, the Corporation has the right toments to Private Development Corporation of the acquire shares and /or participate in the profits ofPhilippines in connection with its stock offering the enterprise.which ended in June 1963. A total of 2,500,000
35
OPINION OF INDEPENDENT AUDITOR
1710 H STREET, N.W.
WASHINGTON 6, D. C.
AUGUST 2, 1963
To
INTERNATIONAL FINANCE CORPORATION
WASHINGTON, D. C.
In our opinion, the accompanying financial statements present fairly, in terms of
United States currency, the financial position of International Finance Corpora-
tion at June 30, 1963, and the results of its operations for the year then ended,
in conformity with generally accepted accounting principles applied on a basis
consistent with that of the preceding year. Our examination of these statements
was made in accordance with generally accepted auditing standards, and accord-
ingly included such tests of the accounting records and such other auditing pro-
cedures as we considered necessary.
PRICE WATERHOUSE & CO.
FINANC;AL STATEMENTSCOVERED BY THE FOREGOING OPINION
BALANCE SHEET ........................................ APPENDIX A
COMPARATIVE STATEMENT OF INCOME AND EXPENSES ......... APPENDIX B
STATEMENT OF OPERATIONAL INVESTMENTS AND STANDBY
AND UNDERWRITING COMMITMENTS ..... ...... APPENDIX C
NOTES TO FINANCIAL STATEMENTS ........... APPENDIX D
36
APPENDIX E
STATEMENT OF SUBSCRIPTIONS
TO CAPITAL STOCK AND VOTING POWERJune 30, 1963
Subscriptions Voting PowerAmount
Member Countries (in thousands Percent Number Percentof dollars) of total of votes of total
Afghanistan . ................................... 111 .11 361 .31Argentina ...................................... 1,662 1.69 1,912 1.64Australia ....................................... 2,215 2.26 2,465 2.12Austria ........................................ 554 .56 804 .69Belgium ........................................ 2,492 2.54 2,742 2.35Bolivia ......................................... 78 .09 328 .28Brazil .......................................... 1,163 1.18 1,413 1.21Burma ......................................... 166 .17 416 .36Canada ........................................ 3,600 3.67 3,850 3.31Ceylon ......................................... 166 .17 416 .36Chile .......................................... 388 .40 638 .55Colombia ...................................... 388 .40 638 .55Costa Rica ..................................... 22 .02 272 .23Cyprus ......................................... 83 .08 333 .29Denmark ....... 753 .77 1,003 .86Dominican Republic .......................................... 22 .02 272 .23Ecuador ........................................ 35 .04 285 .24El Salvador ..................................... 11 .01 261 .22Ethiopia ....................................... 33 .03 283 .24Finland ........................................ 421 .43 671 .58France ......................................... 5,815 5.92 6,065 5.21Germany ....................................... 3,655 3.72 3,905 3.35Ghana ......................................... 166 .17 416 .36Greece ......................................... 277 .28 527 .45Guatemala ..................................... 22 .02 272 .23Haiti .......................................... 22 .02 272 .23Honduras . ..................................... I I .01 261 .22Iceland ........................................ 11 .01 261 .22India .......................................... 4,431 4.51 4,681 4.02Iran .......................................... 372 .38 622 .53Iraq .......................................... 67 .07 317 .27Ireland ......................................... 332 .34 582 .51Israel .......................................... 50 .05 300 .26Italy .......................................... 1,994 2.03 2,244 1.93Ivory Coast ..................................... 111 .11 361 .31Japan .... 2,769 2.82 3,019 2.59Jordan ......................................... 33 .03 283 .24Kuwait ...... . 369 .39 619 .53Lebanon .... 50 .05 300 .26Liberia ...... . 83 .08 333 .29Libya ............ ,. 55 .06 305 .26Luxembourg .................................... Ill .11 361 .31Malaya ........................................ 277 .28 527 .45Mexico ........................................ 720 .73 970 .83Morocco . ...................................... 388 .40 638 .55Netherlands ................................... 3,046 3.10 3,296 2.83New Zealand ................................... 923 .94 1,173 1.01Nicaragua ................ 9 .01 259 .22Nigeria ........................................ 369 .39 619 .53Norway ........................................ 554 .56 804 .69Pakistan ....................................... 1,108 1.13 1,358 1.17Panama ....................................... 2 * 252 .22Paraguay ....................................... 16 .02 266 .23Peru .......................................... 194 .20 444 .38Philippines ......... 166 .17 416 .36Saudi Arabia ................................... 111 .11 361 .31Senegal ........................................ 184 .19 434 .37Sierra Leone .................................... 83 .08 333 .29Somalia .... 83 .08 333 .29South Africa .................................... 1,108 1.13 1,358 1.17Spain .......................................... 1,108 1.13 1,358 1.17Sudan ......................................... Ill .11 361 .31Sweden ............... 1,108 1.13 1,358 1.17Syrian Arab Republic ............... 72 .07 322 .28Tanganyika ..................................... 184 .19 434 .37Thailand ....................................... 139 .14 389 .33Togo .... 83 .08 333 .29Tunisia ........................................ 133 .14 383 .33Turkey ......................................... 476 .48 726 .62United Arab Republic ................ 5 590 .60 840 .72United Kingdom ................................ 14,400 14.66 14,650 12.58United States ................................... 35,168 35.81 35,418 30.42Venezuela ...................................... 116 .12 366 .31
Total ............................... $98,198 100.00 116,448 100.00
* Less than .005 per cent.
37
APPENDIX F
GOVERNORS AND ALTERNATESJune 30, 1963
Member Government Governor Alternate
Afghanistan . . . . . Abdullah Malikyar Abdul Hai AzizArgentina . . . . . Luis M. Otero Monsegur Pedro Eduardo RealAustralia . . . . Harold H-olt Sir Roland WilsonAustria . . . . . . Franz Korinek Hugo RottkyBelgium . . . . . . Andre Dequae Hubert AnsiauxBolivia . . . . . . Raul Lema Pelaez Adolfo LinaresBrazil . . . . . . Francisco Clementino San Tiago Dantas Octavio Augusto Dias CarneiroBurma . . . . . . U Kyaw Nyein U Kyaw NyunCanada . . . . . . Walter L. Gordon Louis Rasminsky
Ceylon . . . . . . T. B. Illangaratne H. S. AmerasingheChile . . . . . . . Felix Ruiz Alvaro Orrego BarrosColombia . . . . . Carlos Sanz de Santamaria Jorge Mejia-SalazarCosta Rica . . . . . Alvaro Castro Alvaro VargasCyprus . . . . . . Renos Solomides M. E. GuvenDenmark . . . . . Otto Muller Poul Bjorn OlsenDominican Republic . . Diogenes H. Fernandez Luis SchekerEcuador . . . . . . Guillermo Arosemena Neftali Ponce-MirandaEl Salvador . . . . . Francisco Aquino Luis Escalante-Arce
Ethiopia . . . . . . Menasse Lemma Bulcha DemeksaFinland . . . . . . R. v. Fieandt Esko RekolaFrance . . . . . . Minister of Finance Pierre-Paul SchweitzerGermany . . . . . Ludwig Erhard Heinz StarkeGhana . . . . . . F. K. D. Goka W. M. Q. HalmGreece . . . . . . Lambros Eutaxias loannis ParaskevopoulosGuatemala . . . . . Manuel A. Bendfeldt J. Max Jimenez PintoHaiti . . . . . . . Herve Boyer Antonio AndreHonduras . . . . . Celeo Davila Ricardo Alduvin Abaunza
Iceland . . . . . . Petur Benediktsson Thor ThorsIndia . . . . . . . Morarji R. Desai L. K. JhaIran . . . . . . . Abdol Hossein Behnia Djalaledin AghiliIraq . . . . . . . Mohammed J. Oboosy Abdul Hassan ZalzalahIreland . . . . . . Seamas 0 Riain T. K. WhitakerIsrael . . . . . . David Horowitz Jacob ArnonItaly . . . . . . Guido Carli Donato MenichellaIvory Coast . . . . . Raphael Saller Mohamed DiawaraJapan . . . . . . Kakuei Tanaka Masamichi Yamagiwa
Jordan . . . . . . Khatil Salem Adeeb SughayerKuwait . . . . . . Sheikh Jabir Al-Ahmad Al-Jabir Abdlatif Y. Al-HamadLebanon . . . . . . Elias Sarkis Raja HimadehLiberia . . . . . . Charles Dunbar Sherman James Milton WeeksLibya . . . . . . Mansur Ben Gaddara A. A. AttigaLuxembourg . . . . Pierre Werner Pierre GuillMalaya . . . . . . Tan Siew Sin Dato' Abdul Jamil bin Abdul RaisMexico . . . . . . Antonio Ortiz Mena Jose Hernandez DelgadoMorocco . . . . . Driss Slaoui Mohamed Amine Bengeloun
Netherlands . . . . . J. Zijlstra S. PosthumaNew Zealand . . . . H. R. Lake E. L. GreensmithNicaragua . . . . . Guillermo Sevilla-Sacasa Andres GarciaNigeria . . . . . . Chief Festus Sam Okotie-Eboh Reginald A. ClarkeNorway . . . . . . Oscar Christian Gundersen Thomas LovoldPakistan . . . . . Mohamed Shoaib Aftab Ahmad KhanPanama . . . . . . Augusto Guillermo Arango Carlos A. VelardeParaguay . . . . . Cesar Romeo Acosta Oscar Stark RivarolaPeru . . . . . . . Fernando Berckemeyer Tulio De Andrea
Philippines . . . . . Andres V. Castillo Bienvenido Y. DizonSaudi Arabia . . . . Ahmed Zaki Saad Mahjoob HassanainSenegal . . . . . . Karim Gaye Jean DuhamelSierra Leone . . . . A. M. Margai John TaylorSomalia . . . . . . Abdulcadir Mohamed Aden Francesco Palamenghi-CrispiSouth Africa . . . . T. E. Donges M. H. de KockSpain . . . . . . Mariano Navarro Rubio Juan Antonio Ortiz GraciaSudan . . . . . . Abdel Magid Ahmed Abdel Rahim MirghaniSweden . . . . . . G. E. Straeng N. G. Lange
Syrian Arab Republic . . George Tomeh Kamal GhaliTanganyika . . . . . Paul Bomani C. de N. HillThailand . . . . . Sunthorn Hongladarom Boonma WongswanTogo . .Antoine Meatchi Jean TeviTunisia . . . . . . Ahmed Ben Salah Abdesselam Ben AyedTurkey. . . . Ferit Melen Ziya KaylaUnited Arab Republic . Abdel Moneim El Kaissouni Hamed Abdel Latif El SayehUnited Kingdom . . . The Earl of Cromer I Sir Denis RickettUnited States . . . . Dougtas Dillon George W. BallVenezuela . . . . . Rafael Alfonzo Ravard Miguel Herrera Romero
I Effective July 21, 1963.
38
APPENDIX G
DIRECTORS AND ALTERNATES ANDTHEIR VOTING POWER
June 30, 1963
Director Alternate Casting votes of Total votes
APPOINTED
John C. Bullitt Erle Cocke, Jr. United States 35,418
David B. Pitblado N. M. P. Reilly United Kingdom 14,650
Rene Larre Jacques Waitzenegger France 6,065
C. S. Krishna Moorthi* Arun K. Ghosh India 4,681
Otto Donner Helmut Abramowski Germany 3,905
ELECTED
Mumtaz Mirza Ali Akbar Khosropur Pakistan, United Arab Republic, Iran, 5,999(Pakistan) (Iran) Kuwait, Sudan, Saudi Arabia, Somalia,
Syrian Arab Republic, Iraq, Lebanon,Ethiopia, Jordan
John M. Garland A. J. J. van Vuuren Australia, South Africa, New Zealand 4,996(Australia) (South Africa)
Andre van Campenhout Franz Oellerer Belgium, Austria, Turkey, Luxembourg 4,633(Belgium) (Austria)
A. F. W. Plumptre L. Denis Hudon Canada, Ireland 4,432(Canada) (Canada)
Gengo Suzuki M. Kumashiro Japan, Burma, Ceylon, Thailand 4,240(Japan) (Japan)
Joaquin Gutierrez Cano Sergio Siglienti Ttaly, Spain, Greece 4,129(Spain) (Italy)
Alice Brun Eino Suomela Sweden, Denmark, Norway, Finland, 4,097(Denmark) (Finland) Iceland
Pieter Lieftinck Aleksandar Bogoev Netherlands, Cyprus, Israel 3,929(Netherlands) (Yugoslavia)
Luis Machado Lempira E. Bonilla Mexico, Peru, Venezuela, Costa Rica, 3,629(Cuba) (Honduras) Haiti, Guatemala, El Salvador, Hon-
duras, Nicaragua, Panama
Fernando Illanes Carlos S. Brignone Argentina, Chile, Bolivia, Paraguay 3,144(Chile) (Argentina)
Jorge Mejia-Palacio Jose Camacho Brazil, Colombia, Philippines, Ecuador, 3,024(Colombia) (Colombia) Dominican Republic
Abderrahman Tazi Ismail Khelil Morocco, Malaya, Ghana, Tunisia, 2,630(Morocco) (Tunisia) Afghanistan, Libya
In addition to the Directors and Alternates shown in the foregoing list, the following also served as Director or Alternateafter Novemnber 1, 1962;
End of Period of End of Period ofDirector Service Alternate Director Service
Jose Aragones (Spain) January 31, 1963 Tyge Dahlgaard (Denmark) December 31, 1962Mohamed Shoaib (Pakistan) February 28, 1963 Helmut Koinzer (Germany) January 15, 1963
Jaakko Lassila (Finland) November 30, 1962Ernst A. Rott (Austria) November 7, 1962
* To be succeeded by K. S. Sundara Rajan, effective August 1, 1963.
39
APPENDIX H
OFFICERSJune 30, 1963
GEORGE D. WOODS ................. President
MARTIN M. ROSEN ................. Executive Vice President
J. G. BEEVOR ................. Vice President
WILLIAM DIAMOND ................. Director of Development Bank Services
J. DAVID DODD ................. Senior Entgineer
A. G. EL EMARY ................. Director of Investments, Africa, Asia and Middle East
HON. LEONARD HALL ................. Adviser on Special Projects
NEIL J. PATERSON .......... Director of Investments, Latin America, Europe and Australasia
R. B. J. RICHARDS ................. General Counsel
................... Accounting Adviser
R. W. CAVANAUGH ................. Treasurer
HAROLD N. GRAVES, JR ................. Director of Information
W. F. HOWELL ................. Director of Administration
HOWARD C. JOHNSON .................... Manager of Portfolio Sales and Participations
GEORGE L. MARTIN ................. Director of Marketing
M. M. MENDELS ................. Secretary
JAMES H. DARTON ................. Special Representative-Europe
40
OFFICES
The International Finance Corporation is located in Washington, D.C.
IFC maintains offices also in New York, London and Paris.
Addresses are as follows:
1818 H Street, N. W ................. Washington, D.C. 20433, U. S. A.
33 Liberty Street ................... New York, N.Y. 10005, U. S. A.
New Zealand House, Haymarket ................ London S.W.1, England
4 Avenue d'1ena ........................ Paris 16e, France
41