IFC finances fertilizer plant in China

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WASHINGTON, May 18 (Xinhua) -- IFC has signed a 20-million-dollar loan and a 10-million-dollar equity investment with a Chinese company in Sichuan Province, to help the southwest China region recover from a devastating earthquake last year.

The agreement, which is to finance the construction of a 450,000-ton-per-annum fertilizer plant, is expected to improve the living standards of local farmers, said the IFC, a member of the World Bank, in a statement released on Monday.

"IFC's involvement is critical to the success of the project," said Koyo Chairman Li Weiruo. "Not only is IFC providing long-term capital which became scarce in the wake of the global financial crisis, but IFC's technical support will also assist in implementing leading environmental standards for the plant's operation."

IFC has responded to the May 2008 Sichuan earthquake and the global financial crisis by filling financing gaps and supplementing the efforts of China's central, provincial, and local governments to address infrastructure and basic social needs.

Providing equity and long-term debt to Koyo will enable the company to complete the construction of the plant and satisfy its financing needs over the next nine years.

"IFC is pleased to support Koyo and the reconstruction efforts in Sichuan," said Somit Varma, IFC's director of Oil, Gas, Mining, and Chemicals.

"We hope that the success of Koyo's ammonia-urea plant will spur further private sector involvement in the earthquake recovery efforts. We also look forward to more investments in companies like Koyo that can dramatically improve the lives of local farmers and residents," he added.