This is a preview of subscription content, log in via an institution to check access.
u|
The Company is widely known as CDFC. These initials should not be confused with CDC - the Commonwealth Development Corporation (formerly the Colonial Development Corporation) which was formed by the British Government in 1948. CDFC is a finance house using private capital; CDC is an institution similar to the Kreditanstalt für Wiederaufbau, which invests in a much wider range of development projects using mainly Government funds and taking management responsibility for most of the projects In which it invests.
CDFC’s authorised equity capital is £ 30 mn. At present, £ 26.33 mn has been issued and £ 7.33 mn called up in the form of cash resources. The issued equity capital consists of £ 14.59 mn 1 ’A’ ordinary shares held by private enterprise companies and institutions which are only 10 p.c. paid up, and £ 11.74 mn 1 ’B’ ordinary shares held by the Bank of England and other Central Banks which are 50 p.c. paid up. Under CDFC’s present Memorandum of Association, the call on the ’A’ shares cannot be raised above 10 p.c. until the ’B’ shares have become fully paid.
In 1959, The Central Banks of certain Commonwealth countries subscribed for 0.85 mn ’B’ shares.
The value of certain investments in Australia was written down by £ 54.000 in March 1968. A note to the March 31, 1969, Balance Sheet indicates that ’in view of the long term nature of the Company’s interests, your Directors are or the opinion that no provision need at present be made In respect of the fluctuations in the current values of quoted or unquoted investments’.
See two articles on “The Commonwealth Development Finance Company Limited” in the Banker’s Magazine, January and February, 1969.
Rights and permissions
About this article
Cite this article
Private capital for developing countries. Intereconomics 5, 89–91 (1970). https://doi.org/10.1007/BF02928501
Issue Date:
DOI: https://doi.org/10.1007/BF02928501