World Bank unit invests in Volkswagen Pune plant

WASHINGTON Thu Aug 6, 2009 5:31am IST

A Volkswagen logo sign is seen inside the lobby of the U.S. headquarters building of Volkswagen Group of America in Herndon, Virginia, September 18, 2008.       REUTERS/Larry Downing/Files

A Volkswagen logo sign is seen inside the lobby of the U.S. headquarters building of Volkswagen Group of America in Herndon, Virginia, September 18, 2008.

Credit: Reuters/Larry Downing/Files

Related Topics

WASHINGTON (Reuters) - The International Finance Corp, the World Bank's private-sector lender, said on Wednesday it would invest 135 million euros in Volkswagen India's manufacturing plant in Pune to help create jobs locally.

IFC said the financing would consist of a 60 million euro loan from its own resources and an additional syndicated loan worth 75 million raised through commercial banks Socit Gnrale, Bank of Mitsubishi, DBS Bank, and Fortis Bank.

In addition, the European Investment Bank and German development bank KfW are considering further loans to meet the project's remaining financing needs, IFC said

Construction of the plant, which will have the capacity to produce 110,000 cars, started in 2007 and Volkswagen AG has invested about 245 million euros in the project.

"This investment demonstrates the important counter-cyclical role IFC plays in supporting a vital project with significant job-creating potential during challenging times," said Dimitris Tsitsiragos, IFC director for global manufacturing and services.

"The investment will also support the development of India's car manufacturing sector and sends a strong signal to other investors in the country," Tsitsiragos added.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Health

REUTERS SHOWCASE

Border Dispute

Border Dispute

China expresses concern about Indian plan to build border posts  Full Article 

Cost Cutting

Cost Cutting

PM Modi boots officials out of the first class cabin.  Full Article 

Formula One

Formula One

Mercedes rivals warm up with burgers and bling.  Full Article | Related Story 

Fight Unites

Fight Unites

Kurds' battle for Kobani unites a people divided by borders.  Full Article 

Cook Speaks Out

Cook Speaks Out

Apple's Cook signals front line of new gay rights battle.  Full Article 

Ebola Outbreak

Ebola Outbreak

U.S. nurse defies Ebola quarantine with bike ride; negotiations fail.  Full Article | Related Story 

A Minute With

A Minute With

Bollywood's Kalki Koechlin on playing disabled teen.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage