Summary of Proposed Investment
Project Number
7328
Company Name
Emerging Markets Local Currency Debt Fund
Date SPI Disclosed
Sep 17, 1996
Country
World Region
Industry
other
Status
Completed
Sector
Foreign Portfolio Debt Fund
Department
Equity Portfolio Management
Environmental Category
C - No Impact
Previous Events
Approved : Dec 19, 1996
Signed : Apr 3, 1997
Invested : Apr 3, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Global-Emerging Markets Local Currency Debt Fund |
| Region | Global |
| Sector | Financial Services |
Project No007328
Projected Board DateNovember 5, 1996
Company NameEmerging Markets Local Currency Debt Fund
Technical Partner and/or Major Shareholders
Lazard Fréres Asset Management
Project Cost Including proposed IFC investment
The initial target size of the Fund is US$50 million, which includes an IFC investment of US$10 million.
Location of project and Description of site
United States
Description of Company and Purpose of Project
The Emerging Markets Local Currency Debt Fund would be a new, actively-managed, semi-open ended investment vehicle designed to encourage investment in private sector local currency corporate debt instruments from emerging markets. The Fund would invest in corporate debt issues from approximately 20 eligible countries in Latin America, Eastern Europe, Asia, and Africa. The Fund would be established to invest in local currency debt issues, to assist with the development of domestic debt markets in developing countries. Debt markets are needed to facilitate the financing of massive infrastructure and other corporate investment needs of the these markets to sustain the levels of projected economic growth over the next decade. By creating an investment vehicle targeted at institutional investors who would allocate a portion of their assets in the “high yield” category to local currency debt issues of corporate entities, IFC would be playing a significant role in developing the nascent debt markets of the selected countries.
Environmental Category and Issues
This is a category “C” project under IFC’s environmental review procedures and, therefore, no further environmental review is required.
| Date SPI sent to PIC | September 17, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
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