TCW Asset Management Company will be the fund Manager. TCW Asset Management Company is a wholly owned subsidiary of the TCW Group, Inc. (collectively TCW), which is an indirect subsidiary of Société Générale, S.A. As of December 31, 2002, TCW had approximately $80 billion assets under management, including over $3.7 billion in emerging market debt. TCW has 14 debt funds under its management, of which eight are emerging market debt funds with CBO structures.

The expected size of the fund is $400 million. IFC proposes to invest $20 million in the Preference Shares and $10 million in the Second Priority Notes.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	30.0

* These investment figures are indicative

The location of the project is Los Angeles, USA

This is an environmental review category FI-1 project. All potential corporates considered for inclusion in the underlying asset pool will require that the issuer''s business does not involve activities on IFC''s exclusion list. Corporates from companies with known poor environmental and/or social practices will also be excluded. The fund Manager will insure the screening procedure is applied to determine the suitability of the corporates for inclusion in the asset pool.
Location of environmental documents in locally affected community

The fund is to play an important role in enhancing the status of emerging markets corporate debt as a distinct asset class for international institutional investors. Consequent to the global economic downturn, retrenchment of banks and hedge funds from emerging market debt has seriously affected domestic companies' accessibility to foreign funding. New issuance of corporate paper has declined to $19 billion in 2002 from a high of $41 billion in 1997. Through investment in this fund, IFC will encourage dedicated fixed income fund managers in this asset class to successfully create new products in the form of structured debt funds that are designed to modify the return/risk profile of emerging market assets to tap those investors who are limited to investment grade securities and increase the overall demand for emerging market corporate debt, thereby facilitating emerging markets companies to access the international capital markets either to lower their funding costs or extend their debt maturities or both. Traditionally, the emerging markets investment pool has largely been limited to investors in high-yield bonds, a relatively specialized investor group with limited resources for high-risk classes of assets. By structuring a specialized investment vehicle for large credit-rating-sensitive institutional investors to access emerging market debt securities, IFC would send a strong signal that IFC is committed to develop innovative financial instruments for these investors. According to the fund manager's initial market soundings, investors are hesitant about investing in emerging market debt issues. In order to move the fund forward, TCW must structure the subordinate tranche of the CBO, which is always the most challenging component in such transactions. This problem has been further compounded as institutional investors are trying to reduce risk on their balance sheets and have limited appetite for emerging market exposure. Participation by a strong investor like IFC in the subordinate tranche at the early stage is likely to have a significant catalytic effect and be critical to the distribution and placement of the fund.