Thai Equity Fund Summary Of Project Information (SPI)       Project Name    Thailand - Thai Equity Fund      RegionAsia and the Pacific   Sector   Project No009773   Projected Board DateApril 21, 2000   Company NameThai Equity Fund    Technical Partner and/or Major Shareholders    	The Thai Equity Fund is a private equity fund that will invest in companies being restructured in Thailand.  Based on a selection process involving 14 fund managers, the IFC team selected Lombard/Pacific Partners (Lombard) as manager of the fund. Lombard is a private equity firm that was established in 1985 in San Francisco, and with operations in the US and Asia. The firm currently manages commitments of approximately US$600 million. Lombard''s single largest investor is the California Public Employees Retirement System (Calpers).     Project Cost Including proposed IFC investment    	The fund size at the first closing is expected to be US$425 million. The fund targets a second closing at US$500 million. Subsequently, the fund may be increased up to a maximum of US$1 billion, provided that deal flow is confirmed and investor interest exists.   IFC proposes to make a maximum investment of US$75 million in the fund, plus a US$20,000 investment in an off-shore management vehicle. The amount is conditional upon the fund achieving a first closing at US$425 million.   Lombard is arranging an investment of US$150 million in the fund from investors it knows well. Further, an amount of US$200 million will be arranged by the Thai Ministry of Finance from Thai financial institutions. The Ministry of Finance has indicated that any shortfal of the US$200 million will be funded by the Ministry directly.     Location of project and Description of site    	The fund will be domiciled in Thailand and invest in companies and financial institutions in Thailand. The fund manager will establish an office in Thailand from which its investment operations will be directed.    Description of Company and Purpose of Project    	The project consists of the formation of a closed-end private equity fund, and will be structured as a Thai mutual fund. The fund will invest in Thai companies and financial institutions that are in need of financial restructuring. The fund is a response to the crisis that has hampered Thailand since 1997, which has created a massive need for additional equity capital to de-leverage the corporate sector. While the Thai economy has registered a positive growth last year, sustained recovery of the economy is to a large extent dependent upon further impetus to corporate restructuring.   IFC has played a key role in structuring and mobilizing investments in the Fund.  IFC is expected to continue to play a key role in the Fund, including nominating a member of the investment committee, and seconding up to two staff members to the management team of the fund management company.    Environmental Category and Issues    	This is a Category FI Type 2 project according to IFCs environmental and social review procedure.  The Fund will be required to invest only in subprojects or companies whose activities are carried out and operated in compliance with the host country''s applicable environmental, health and safety requirements.  In addition, such activities must be carried out in accordance with IFC''s environmental and social safeguard policies, and be consistent with IFC''s Exclusion List.  Further, for this particular project, all such activities must be conducted in accordance with World Bank Group''s applicable environmental, health and safety guidelines.  The Fund Manager must develop an environmental management system to ensure that all investments undergo detailed appraisal and supervision.  The Fund Manager must retain an environmental consultant to conduct environmental reviews of prospective investments. The Fund Manager must obtain the clearance of IFC''s Environment Division prior to making an investment in any Category A subproject.  Co-investments would be subject to IFC''s standard requirements and presented to IFC''s Management and Board under standard IFC procedures. The Fund Manager and its environmental consultant must participate in environmental training as required by IFC.  The Fund Manager must provide an annual environmental performance report to IFC.        Date SPI sent to InfoShop     March 22, 2000      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).