Washington, D.C., May 23, 2002--The International
Finance Corporation (IFC)—the private sector lending arm of the World
Bank Group—has agreed to reschedule US$204 million in IFC’s outstanding
loans provided to Star Petroleum Refining Company Limited (SPRC), Thailand.
This rescheduled debt includes both an A-loan for IFC’s own account
and a B-loan for the account of participating banks.
IFC and Bank of America, N.A., together with other members of the Lenders’
Steering Committee—Mizuho Corporate Bank, Ltd. (formerly The Industrial
Bank of Japan Limited), Bangkok Bank Public Company Limited, and Deutsche
Bank AG—led discussions to reschedule the company’s outstanding debt
of $549 million, which includes IFC’s loans.
The company’s sponsors, ChevronTexaco Global Energy Inc. (with 64 percent
ownership) and PTT Public Company Limited (with 36 percent ownership),
have strongly supported SPRC since the Asian financial crisis and were
instrumental in reaching an agreement to reschedule its debt. The
lenders, sponsors, and SPRC completed a successful rescheduling package
which was unanimously accepted by all lenders on the basis of fair burden-sharing
among all parties.
The 150,000 barrel per day refinery, in the Map Ta Phut area of Rayong
Province in Thailand, was commissioned in mid-1996. Its construction
was funded on a project finance basis with $1.2 billion in long-term debt
secured from a large group of commercial banks, including 50 participant
banks in IFC’s B Loan. The refinery was constructed to meet the
growing petroleum demand in Thailand and to support the government's program
to improve transportation fuel specifications amidst concerns about deteriorating
air quality in the Bangkok metropolitan area.
Mr. Rashad Kaldany, IFC Director for Oil, Gas, and Chemicals, said, “The
successful closure of this debt rescheduling was largely due to the confidence
of the sponsors and lenders in the long-term viability of the project and
the demonstrated willingness of the sponsors to support SPRC. This
transaction will also contribute to business confidence in Thailand, especially
on the part of foreign investors.”
Ms. Suellen Lazarus, IFC Director for Syndications, added, “With 50 participant
banks in the B loan to SPRC, it is the largest bank group in IFC’s syndicated
loan portfolio, and we are delighted that the banks were unanimous in their
support for the restructuring.”
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to 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. Since its founding
in 1956 through the close of the last fiscal year on June 30, 2001, IFC
committed more than $31 billion of its own funds and arranged $20 billion
in syndications for 2,636 companies in 140 developing countries. IFC’s
committed portfolio at the end of FY01 was $14.3 billion.