Bharti Telecom

completed

BML: BML, formerly JT Mobile, has the cellular licenses for Karnataka and Andhra Pradesh and commenced operations in 1997, and has grown to a total subscriber base of about 100,000. The Bharti Group acquired a stake in BML in December 1999. IFC''s partial guarantee on local bond financing will enable the mobilization of a significant amount of funds, encourage investments from non-banking institutional investors who would be unlikely to lend to an infrastructure development project without IFC''s guarantee, and increase the breadth of the securities market in India. IFC''s involvement will signal to the market that the ongoing telecommunications reforms initiated by the government are beneficial to the country, and should be continued. IFC''s involvement will help fulfill the Company''s desire for local currency funds, minimizing foreign exchange risk. The project supports the liberalization and development of a competitive telecommunications sector, which aims at providing low cost access to basic as well as value added telecommunication services with a customer focus.