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IFC and Standard Chartered Group Launch $125 Million Partial Guarantee Facility


L. Joseph
Phone:  (202) 473-7700

Fax:  (202) 974-4384

E-mail:  
ljoseph@ifc.org


Bangkok, Thailand, December 4, 2001—The International Finance Corporation (IFC) jointly with Standard Chartered Nakornthon Bank (SCNB) and Standard Chartered Bank, Bangkok Branch signed a US$125 million guarantee facility agreement to help support local businesses in Thailand.

IFC has agreed to partially guarantee up to 40 percent or $50 million for individual loans originated by Standard Chartered in Thailand over the next ten years.  Both Standard Chartered Nakornthon Bank and Standard Chartered Bank, Bangkok Branch will provide financing for the loans.


IFC Executive Vice President, Peter Woicke—who is on an official visit to Thailand—said at the signing ceremony in Bangkok, “We are delighted to work with the Standard Chartered Group to help meet the financing needs of local Thai businesses.  The partial guarantee facility will enable sound Thai companies to access new credit and improve their financial structure overall, thus contributing to their sustainability.  Through the facility, we also intend to reach out and support the financing needs of companies in a wide variety of industries.  This will help promote employment and economic growth in Thailand.”


The guarantee facility will also assist the Standard Chartered Group to increase the size and maturity of its lending to Thai companies.  Senior Executive Vice President, Standard Chartered Nakornthon Bank, Lyn Kok said, “We are delighted to be working with IFC to provide secured long-term lending to local businesses in Thailand.  Standard Chartered Bank will be able to reposition its local business portfolio.  Although some companies may have strong balance sheets, they may be too small to raise funds in the local bond market.  This facility will enable them to raise long-term debt for up to seven years.  Companies with viable operations and prudent management should enjoy improved access to local and foreign currency financing as a result of this facility.”


Standard Chartered Nakornthon Bank—whose predecessor institution, Nakornthon Bank, was established in 1933—is the second oldest commercial bank in Thailand with 45 branches and total assets of about $1.7 billion.  In September 1999, Standard Chartered Bank acquired a 75 percent stake in Nakornthon Bank.  Standard Chartered Bank is the leading bank for emerging markets with over 500 offices in 52 countries and has operated in Thailand since 1894.


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, IFC has 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.

Standard Chartered Nakornthon Bank SME Risk Sharing Facility