Kula Fund

completed

Summary Of Project Information (SPI)Project NamePacific Islands-Kula Fund Ltd.     RegionAsiaSectorProject No008370Projected Board DateJune 30, 1997Company Name     Technical Partner and/or Major Shareholders Kula Fund is being sponsored by the Commonwealth Development Corporation (CDC). Established in 1948, CDC is the UK’s overseas development finance institution providing long-term loans and equity to financially viable and sustainable ventures primarily in the private sector. Apart from IFC, the other investors are expected to be mainly development finance institutions, including ADB, EIB and Proparco. Other potential investors may include local investment institutions and local provident funds.Project Cost Including proposed IFC investment The target size of Kula Fund is US$18 million, of which IFC is expected to invest US$2.5 million, or 15% of the total commitments, whichever is lower.Location of project and Description of site To be incorporated in Vanuatu, Kula Fund will operate throughout the Pacific Island countries, with the majority of investments expected to be in Papua New Guinea and Fiji.Description of Company and Purpose of Project Kula Fund will make equity or quasi-equity investments in private sector companies in the Pacific Island countries, thereby promoting growth of medium-sized private businesses which have limited access to institutional sources of equity finance.Environmental Category and Issues This is a Financial Intermediary (FI) category project according to IFC’s environmental review procedure. The management company will be required to undertake an environmental review of eligible investee companies’ operations. In addition, IFC will assess the management company’s capability to carry out environmental reviews of each investee company. Date SPI sent to PIC      May 28, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384