Bangkok, Thailand, October 28, 1999 —
The International Finance Corporation has entered into a Memorandum of
Understanding with the Ministry of Finance of the Government of Thailand
and Lombard Investments, Inc. to establish a US$500 million fund to make
equity and quasi-equity investments in commercial businesses in Thailand.
The fund will facilitate recovery of Thai enterprises in the wake of the
Asian currency crisis.
The fund will invest in existing, competitive, private sector enterprises,
including those that are in the process of debt restructuring. It will
also invest in enterprises that are being privatized. Depending on deal
flow and investor interest, the fund may target a total size of $1 billion.
The first closing is expected to take place in the first quarter of the
The Thai Ministry of Finance will arrange a commitment of $200 million
from Thai institutions, IFC will commit $75 million, and Lombard is expected
to arrange $150 million. All commitments are subject to relevant approvals,
negotiations, and documentation. The remaining $75 million will be raised
from institutional investors.
A new fund management company will be established with Lombard as the majority
shareholder. IFC and Lombard will work together as joint sponsors to structure
the fund and the fund management company, establish the management team,
and identify other investors.
Lombard is a U.S.-headquartered private equity investment manager pursuing
investments throughout Asia and North America. Organized in 1985, the firm
has made more than fifty investments in eight countries, including several
recent ones in Thailand. Lombard and its affiliates maintain offices in
San Francisco, Hong Kong, Sydney, and Taipei.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.
This press release does not constitute an offer of securities. Any future
offering of securities will not be registered with the US Securities and
Exchange Commission or any state regulatory authority, and the securities
may not be offered or sold within the US or to, or for the account of,
US persons, absent such registration or an available exemption.