Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 15 April 2003
Length: 20 pages
Data source: Field research
Topics:
Capital-asset-pricing; Financial engineering; Foreign investments; Capital investments; Asset management; Financial strategy; Developing countries; Political risk; Economies of scale; Emerging markets; Political process; International entrepreneurial finance; Cross functional management; Project management; Project finance
Abstract
It is June 1997, and a team from the International Finance Corp (IFC) is recommending that the board approve a USD120 million investment in a USD1.4 billion aluminum smelter in Mozambique, known as the Mozal project. Four factors make the investment controversial: it would be the IFC's largest investment in the world, total investment is almost the size of Mozambique's gross domestic project (GDP), Mozambique had only recently emerged from 20 years of civil war, and several key contractual issues were still undecided. Because commercial bankers have refused to finance the deal unless the IFC is involved, the sponsors have requested IFC participation. Whether the IFC's board will agree that it is the right time and the right place to make such a large investment remains to be seen.
Location:
Industries:
Size:
USD500 million revenues, 900 employees
Other setting(s):
1997
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 34 pages
About
Abstract
It is June 1997, and a team from the International Finance Corp (IFC) is recommending that the board approve a USD120 million investment in a USD1.4 billion aluminum smelter in Mozambique, known as the Mozal project. Four factors make the investment controversial: it would be the IFC's largest investment in the world, total investment is almost the size of Mozambique's gross domestic project (GDP), Mozambique had only recently emerged from 20 years of civil war, and several key contractual issues were still undecided. Because commercial bankers have refused to finance the deal unless the IFC is involved, the sponsors have requested IFC participation. Whether the IFC's board will agree that it is the right time and the right place to make such a large investment remains to be seen.
Settings
Location:
Industries:
Size:
USD500 million revenues, 900 employees
Other setting(s):
1997
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 34 pages