Summary of Proposed Investment
Project Number
7979
Company Name
ASIA POWER (PRIVATE) LIMITED
Date SPI Disclosed
Nov 14, 1996
Country
Sri Lanka
Industry
Infrastructure
Status
Completed
Sector
Heavy Fuel Oil - Thermal Power Generation
Department
Regional Industry - INF Asia & Pac
Environmental Category
C - No Impact
Previous Events
Approved : Dec 16, 1996
Signed : May 30, 1997
Invested : Aug 17, 2017
Project Description
Summary Of Project Information (SPI)
| Project Name | Sri Lanka - Asia Power (Private) Limited |
| Region |
|
| Sector |
Projected Board DateNovember 29, 1996
Company NameAsia Power (Private) Limited (APPL)
Technical Partner and/or Major Shareholders
Klockner Humboldt Deutz, Great Britain Ltd. (31.8%), Nissho Iwai, Japan (18.27%) and Burmeister & Wain Scandinavian Contractor, Denmark (6.8%).
Project Cost Including proposed IFC investment
US$5 million loan equivalent exposure to undertake a swap.
Location of project and Description of site
The plant is located about 20 km from the capital city of Colombo in South Western Sri Lanka.
Description of Company and Purpose of Project
The objective of this Project is to allow the APPL to hedge its interest rate and currency risk. The APPL has requested that IFC arrange an interest rate swap on the IFC ‘B’ loan in order to effectively convert this loan from variable rate into US dollar fixed rate. In addition, since the APPL intends to borrow US$10 million equivalent from DEG, which may be denominated in Deutschemarks, they have requested that IFC arrange a currency swap into fixed rate US dollars so as to reduce the resultant currency risk. These swap transactions will be priced on the basis of standard IFC pricing guidelines for client risk management transactions. IFC’s total exposure under these swap transactions is estimated at approximately US$2 million.
This Project will further support the developmental initiatives cited in IFC’s previous investment in the Project. Currency and interest rate risk management would improve the stability of the Company’s future cashflows and enhance its economic viability.
Environmental Category and Issues
The proposed transaction is of a financial nature only, and accordingly is classified as a category C Project according to IFC’s environmental review guidelines and procedures. No further environmental review is required.
| Date SPI sent to PIC | November 14, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
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).
Sponsor / Cost / Location
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