Mariwasa gets $15-M IFC facility

The Mariwasa Group of Companies, a leading ceramic tile manufacturer in the country, has received a $15-million long-term loan from the multilateral International Finance Corp. (IFC).

The loan facility consisted of a $12-million senior term loan and a $3-million subordinated loan. Proceeds of the loan will be used to partially fund the financial and operational streamlining of Mariwasa, including the retirement of the group's short-term debt, and the restructuring of its long-term loans.

"The loan facility awarded to Mariwasa is in line with IFC's response to the Asian crisis," IFC chief of mission Vipul Prakash said.

"IFC is trying to assist strong, viable businesses to hurdle the `bumps' caused by the financial crisis," he added.

"With this facility and the restructuring of its debt, Mariwasa will be in a stronger financial position to take advantage of the recovery of the ceramic-tile sector," Prakash said.

A member of the World Bank Group, IFC is the largest multilateral source of funding for the private sector in developing countries. In line with its mission to promote private sector investment, IFC helps beneficiary-governments address mass poverty. It mobilizes capital in the international financial markets and provides technical assistance and advice to governments and businesses.

On the other hand, the Mariwasa Group, composed primarily of Mariwasa Manufacturing, Incorporated and Mariwasa Siam Ceramics, Incorporated has consistently maintained a dominant share of the local market due to its quality craftsmanship, wide selection of designs and strong distribution network.

All AsiaCapital and Trust Corp. was appointed as financial advisor of the group's debt. A leading diversified financial institution established in 1979, All AsiaCapital has grown to become a major institution with investments and businesses in investment banking, trust and investment services, financing, credit card services, venture capital investment, strategic investments, stockbrokerage, insurance, pre-need, mutual fund, and thrift banking.