IVK I (DFC)

closed

This report appraises the Austrian Industrial Projects, a loan which covers eleven separate subprojects from a wide range of industries. The loan funds will support the investments of eleven companies which are generally centered on obtaining new machinery and equipment, construction of plants and other facilities, and efficiency improvements. Six of the eleven companies are of the pulp and paper industry and produce sulphate pulp and paper, sawmills, fiberboard, mechanical pulp and paper, glassine, tissue, other specialty papers, and newsprint. The remaining five companies represent the electrical equipment, worsted yarns, rayon yarns, knitted wear, and polyvinyl chloride industries. The report concludes that all the subprojects are of high economic priority. The primary objective in all cases is the modernization or expansion of existing facilities in order that the enterprises may maintain or improve their positions in the export markets. The subprojects are all well planned and enjoy reasonable costs, good engineering, and sound management. The eleven companies all have sound financial structures. Adequate security provisions have been made. The report suggests that the loan be made to the borrower with the guarantee of the Austrian Government. Forecasts show that the companies concerned will earn a satisfactory return on their equity investments and that their operations will generate sufficient cash to meet debt service payments without impairing their liquidity. The eleven subprojects, which are individually appraised in this report, are a suitable basis for a Bank loan.