BANGKOK, THAILAND, August 10, 1999 –
The Government of Thailand has mandated the International Finance Corporation to raise a fund with an initial size of US$500 million and, depending on the market conditions and performance, the amount could be extended up to an aggregate $1 billion. The Fund would be dedicated to the recapitalization and restructuring of Thai enterprises and for the purpose of making strategic investments in Thailand. The Fund will have a purely commercial orientation and will focus on making equity investments in Thai enterprises, mostly large Thai corporates, both listed and unlisted. The Government and other Thai entities mobilized by the Government would invest up to 40 percent, or $200 million in the first instance, and is looking to IFC to help raise the rest of the fund subscriptions needed, including a 15 percent investment by IFC, or $75 million. IFC is also expected to organize appropriate management of the fund and to be closely involved in its subsequent operations.
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.
