First NIS Restructuring Facility

completed

Summary Of Project Information (SPI)Project NameRussian Federation - NIS Restructuring FacilityRegionEuropeSectorProject No009435Projected Board DateJune 25, 1999Company NameNIS Restructuring FacilityTechnical Partner and/or Major Shareholders The NIS Restructuring Facility (the Facility) will be a limited liability partnership with IFC as the sole limited partner and Baring Vostok Fund as the General Partner. The Facility would enter into a Co-Investment Agreement with the First NIS Regional Fund and with the Baring Vostok Private Equity Fund L.P (BVPEF), a limited partnership with the ING Asset Management as the sole limited partner. The Facility will be managed by General Partner.Project Cost Including proposed IFC investment Project Cost: US$90 million; IFC Investment: US$15 millionLocation of project and Description of site The NIS Restructuring Facility will be registered in Guernsey and will make equity investments in companies operating in Georgia, Russia, Turkmenistan and Ukraine. Description of Company and Purpose of Project The project involves providing an equity line of up to US$15 million to the Facility for investment in the equity of pre-selected portfolio companies of the First NIS Regional Fund (the Fund) that need funds for working capital and restructuring in the aftermath of the August 1998 Russian economic crisis. The Facility will co-invest with BVPEF and the First NIS Regional Fund based on pre-agreed percentages.Environmental Category and Issues This is a Financial Intermediary (FI) Tier 2 project according to IFC''s environmental review procedure. The Facility Manager will be required to undertake an environmental review of each subproject to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and, if applicable, World Bank Group environmental, health and safety guidelines, and submit an annual environmental performance report. IFC will assess the Facility Manager’s capability to carry out environmental reviews. The Facility Manager must obtain IFC clearance prior to making any investment with IFC funds in any Category A project. The Facility Manager and First NIS Regional Fund will be required to develop and implement an Environmental Action Plan for Sakhinles (on Sakhalin Island) acceptable to IFC.The is from the InfoShop.Date SPI sent to InfoShop May 14, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384