Indus Venture Fund II (see 7459 - Indus Mauritius- for Mgmt Co.)

completed

SUMMARY OF PROJECT INFORMATIONProject Name India -Indus Venture Fund II (“Indus II”)Region AsiaSector Capital MarketsProject No. 005098Projected Board Date September 18, 1995Company Name Indus Venture Fund IITechnical Partner and/or Major ShareholdersIndus Venture Management Limited (“IVML”) was founded by Mr. T Thomas, the former Chairman of Hindustan Lever. Mr. Thomas, together with associates, holds 45% of IVML and 9.5% of Indus Venture Fund I (“Indus I”). The other shareholder in IVML (in addition to IFC which holds 10%) is the Arvind Mafatlal Group, a leading Indian business house, which also holds 9.5% of Indus I. The majority of Indus II will be raised from international investors.Project Cost Including Proposed IFC Investment US$40-60 million IFC investment of up of $5 millionLocation of Project and Description of SiteIVML is based in Bombay and has an office in Bangalore. It provides advice and guidance to investee companies. Additional regional offices are planned following the launch of Indus II, and it is intended that investments will be made throughout India.Description of Company and Purpose of ProjectIndus II is a US$40-60 million venture capital fund, to be subscribed through British Virgin Islands and Mauritius companies. It will be managed by a Management Company based in Mauritius. Indus II will invest in small- and medium-sized unlisted companies in India. IVML will be Advisor to this Mauritius based Management Company. This is the second fund to be promoted by IVML, a company founded in 1989 to manage Indus I. IFC already holds 14% of Indus I (total size of US$7 million equivalent). IFC has been asked to contribute US$5 million to Indus II, and will also play a role in structuring and securing commitments from other participants. Environmental Category and IssuesThis is an environmental review category Financial Intermediary project. IVML will be required to undertake an environmental review of all eligible investee companies’ operations to ensure compliance with Government of India’s environmental regulations and applicable World Bank guidelines and environmental policies. In addition, IFC will assess IVML’s capability to carry out environmental reviews of each investee company. Date SPI sent to PIC August 24, 1995For additional information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365