Proa Fondo de Inversion de Desarrollo de Empresas

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Chile-Proa Fondo de Inversion de Desarrollo de Empresas Region Latin America and CaribbeanSector FinanceProject No. 004611Projected Board Date June 12, 1995Company Name Proa Fondo de Inversion de Desarrollo de EmpresasTechnical Partner and/or Major Shareholders The Fund''s Manager would be a subsidiary of the principal sponsor Moneda Asset Management S.A. ("Moneda"), which is an IFC-supported domestic Chilean fund management company that began operations in 1994. Moneda is owned by IFC, Larraín Vial S.A. and jointly by Messrs. Sergio Undurraga, Antonio Cruz and Pablo Echeverría, key managers of Moneda. Companies in the Larraín Vial group are among Chile''s largest investment banks and brokerage firms.Project Cost including proposed IFC investment The Fund plans a target size of US$50 million, to be raised primarily from domestic institutions such as pension funds and insurance companies. IFC would invest the lesser of US$10 million or 20% of the Fund''s shares and about US$140,000 in the Fund''s Manager through a capital increase of Moneda.Location of project and Description of site Santiago, ChileDescription of Company and Purpose of Project The projects involves the establishment of a new closed-end private equity fund, Proa Fund (the "Fund") and related fund management company. The Fund''s primary objective is to achieve long term capital appreciation through equity investments in medium-sized unlisted Chilean companies. Through enhancing management and providing hands-on technical assistance, the Fund will seek to improve the competitiveness and growth of investee companies. Environmental Categories and Issues This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. The management team has committed to implement an environmental risk management system and to attend IFC''s Environmental Risk Management training.Date SPI sent to PIC May 10, 1995For additional Information contact: Corporate Relations Unit - telephone (202) 473-7711 - facsimile: (202) 676-0365.l:\clacm\chile\alianza\sp004611.wpf