Summary of Proposed Investment
Project Number
10858
Company Name
True Corporation Public Company Limited
Date SPI Disclosed
Apr 25, 2001
Country
Thailand
Industry
Telecommunications and Technology
Projected Board Date
May 31, 2001
Status
Completed
Sector
Cable and Broadband
Department
TMT, Venture Capital & Funds
Environmental Category
C - No Impact
Previous Events
Approved : Jun 19, 2001
Signed : Jun 3, 2002
Invested : Oct 18, 2002
Project Description
TelecomAsia was established by the Charoen Pokphand Group (CP Group) in November 1990 and is a strategic alliance between the CP Group and Verizon Communications (formed by the merger of Bell Atlantic and GTE). In 1991, TA was granted a 25 year concession by the state-owned Telephone Organization of Thailand (TOT) to build and operate 2.6 million lines for the fixed line telecom network in Bangkok.
As a result of the Asian crisis in 1997 and the resultant Thai economic downturn and currency devaluation, the company''s financial situation deteriorated. A financial restructuring was completed early in 2000 which resulted in a more appropriate repayment schedule for outstanding debts.
The proposed project would refinance foreign currency debt with long term local currency debt raised in Thailand. IFC will partially guarantee the longest maturity tranches in order to promote and develop longer maturity corporate debt issuance in Thailand, provide quality long term investment opportunities for local investors and assist TelecomAsia in completing the post crisis rebalancing of its capital structure in a sound and sustainable fashion.
As a result of the Asian crisis in 1997 and the resultant Thai economic downturn and currency devaluation, the company''s financial situation deteriorated. A financial restructuring was completed early in 2000 which resulted in a more appropriate repayment schedule for outstanding debts.
The proposed project would refinance foreign currency debt with long term local currency debt raised in Thailand. IFC will partially guarantee the longest maturity tranches in order to promote and develop longer maturity corporate debt issuance in Thailand, provide quality long term investment opportunities for local investors and assist TelecomAsia in completing the post crisis rebalancing of its capital structure in a sound and sustainable fashion.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Patrick Leahy, Senior Investment Officer
International Finance Corporation
PLeahy@ifc.org
International Finance Corporation
PLeahy@ifc.org