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Summary of Project Information (SPI) |
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| Project number | 7979 |
| Project name | Asia Private Power Limited (APPL)-Swap |
| Country | Sri Lanka |
| Sector | Utilities |
| Department | Infrastructure |
| Company name | Asia Power (Private) Limited |
| Environmental category | |
| Date disclosed | November 14, 1996 |
| Status | Completed |
| Previous Events | Signed: May 30, 1997
Approved: December 16, 1996 |
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Summary Of Project Information (SPI)
| Project Name | Sri Lanka - Asia Power (Private) Limited |
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Project No.7979
Projected Board DateNovember 29, 1996
Company NameAsia Power (Private) Limited (APPL)
Technical Partner and/or Major Shareholders
Klockner Humboldt Deutz, Great Britain Ltd. (31.8%), Nissho Iwai, Japan (18.27%) and Burmeister & Wain Scandinavian Contractor, Denmark (6.8%).
Project Cost Including proposed IFC investment
US$5 million loan equivalent exposure to undertake a swap.
Location of project and Description of site
The plant is located about 20 km from the capital city of Colombo in South Western Sri Lanka.
Description of Company and Purpose of Project
The objective of this Project is to allow the APPL to hedge its interest rate and currency risk. The APPL has requested that IFC arrange an interest rate swap on the IFC ‘B’ loan in order to effectively convert this loan from variable rate into US dollar fixed rate. In addition, since the APPL intends to borrow US$10 million equivalent from DEG, which may be denominated in Deutschemarks, they have requested that IFC arrange a currency swap into fixed rate US dollars so as to reduce the resultant currency risk. These swap transactions will be priced on the basis of standard IFC pricing guidelines for client risk management transactions. IFC’s total exposure under these swap transactions is estimated at approximately US$2 million.
This Project will further support the developmental initiatives cited in IFC’s previous investment in the Project. Currency and interest rate risk management would improve the stability of the Company’s future cashflows and enhance its economic viability.
Environmental Category and Issues
The proposed transaction is of a financial nature only, and accordingly is classified as a category C Project according to IFC’s environmental review guidelines and procedures. No further environmental review is required.
| Date SPI sent to PIC | November 14, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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