After completion of the refinancing, the company will be owned 83 percent by True Corporation (Public) Co., Ltd. (True Corp.), 7 percent by Charoen Pokphand Group Co. Ltd. (CP Group), True Corp.’s largest shareholder, and 10 percent by Orange, S.A., an affiliate of France Telecom, S.A. True Corp. and CP Group are the two sponsors of the Company whereas Orange, S.A. will remain as a financial investor with limited strategic interests. True Corp., formerly known as TelecomAsia Corp., is a publicly traded fixed line telephony services provider with 2.0 million subscribers in the nation’s capital. CP Group, founded in 1921, is a holding company with investments in agribusiness, telecommunications, logistics and retailing. The sponsors are both based in Bangkok, Thailand. Orange, S.A., majority owned by France Telecom, S.A., is one of the world’s largest GSM mobile telephony services operators providing services to 52 million subscribers in 18 countries.

IFC is considering to participate in the long-term $830 million re-financing replacing a 2-year bridge financing and the financing of the company’s 2004 – 2006 capital expenditure program ($370 million), alongside a group of 13 local banks, two international lenders and one equipment vendor. IFC is to provide up to $50 million in loans and/or equity on its own account. The bridge financing was provided in 2002 by a group of local banks and equipment vendors and matured in March 2004. The capital expenditure plan for Phase IV of the network build-out for TA Orange is to provide coverage for up to 91 percent of the population by 2006.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The company maintains an existing mobile telecommunications network in Thailand providing coverage to 78 percent of the population and aiming at a 91 percent coverage by 2006.

The project will have a strong developmental impact in Thailand by: - increasing competition in the mobile market through the support of a strong and competitive third player; - helping to develop the country’s telecommunications infrastructure which is still underserved, especially in the rural areas; - promoting local sponsorship of a major telecommunications business. IFC’s involvement is essential as it will provide long term financing which is not otherwise available. IFC’s role is furthermore important to ensure that the project is implemented in an environmentally and socially sound manner.

This is a category B project, subject to appraisal, according to IFC''s environmental and social review procedure. Issues to consider with regard to this project include: TA Orange''s environmental and social policies and procedures; environmental management and performance of existing network; site selection, land acquisition procedures and construction impacts of proposed expansion of network (towers, switching center and base stations); development of previously undisturbed land; impacts on environmentally or culturally sensitive areas (national parks, forests and other cultural heritage features); fuels/hazardous materials use; waste management; employee health and safety; training and emergency response.
Location of environmental documents in locally affected community
The environmental documents related to this project will be made publicly available on the premises of the World Bank’s Bangkok office as well as at the World Bank Group’s InfoShop in Washington, D.C., USA. The address of the Bangkok office is as follows: International Finance Corporation c/o The World Bank 17th Floor, Tower A Diethelm Towers 93/1 Wireless Road Bangkok 10330, Thailand