IFC and Morgan Stanley invests in flooring
Asia Observatory

02 July 2008

IFC and Morgan Stanley invests in flooring

The World Bank Group's International Finance Corporation (IFC) and Morgan Stanley have jointly invested USD100 million in Nature, one of the largest flooring manufacturers in China, to help the company develop sustainable wood sourcing and promote sustainable development of the flooring industry.
IFC is providing Nature with long-term financing and offering strategic views to help China's wood companies grow in a The USD20 million in equity investment and USD30 million of long-term loans will help Nature implement its growth strategy over the next three years. The financing will enable the company to develop plantation forests in the Jiangxi Province and establish a steady supply of certified wood. These strategic moves will help position the company as a leading player in the sector and bring economic benefits to local communities.
Nature plans to increase the amount of certified wood it uses and has committed to sourcing targets that will help eliminate unknown sources of wood from its operations by the end of 2009. Its target is to use 100% verified supply of legal wood by the end of 2011.The China Forest Trade Network, the national body of the World Wildlife Fund's Global Forest and Trade Network, will regularly assess the company's progress on these targets.