Announcement of IFC Approves US Seven Million Five Hundred Thousand Dollars Investment in Philippine Venture Capital Fund : Equity Support for Small and Medium Enterprises on February 11, 1998

IFC APPROVES US$7.5 MILLION INVESTMENT IN PHILIPPINE VENTURE CAPITAL FUND —Equity Support for Small and Medium Enterprises— WASHINGTON, D.C., February 11—On January 30, the International Finance Corporation (IFC) approved an equity investment of up to US$7.5 million in Hambrecht & Quist Philippine Holdings (H&Q PV3), a 10-year, closed-end venture capital fund that will invest in Philippine small to medium sized enterprises. The fund will be managed by Hambrecht & Quist Philippines, Inc., a subsidiary of H&Q Asia Pacific. H&Q PV3 will target high-growth companies in the Philippines that promote employment and generate foreign exchange, particularly in the tourism, technology, waste management, financial services, and branded consumer products sectors. Part of the fund will be devoted to opportunities and businesses outside metropolitan Manila, such as Mindanao, thus channeling much-needed venture capital to the country's least developed areas. "IFC's participation in H&Q PV3 sends an important message as East Asia continues to weather economic and financial uncertainty," explained Mr. Javed Hamid, Director of IFC's Asia I Department. "The fund will not only attract other investors who can supply much-needed equity financing to the Philippine private sector, but will also send a confidence- building signal throughout the East Asian market," he added. In addition to this investment, IFC has a total of US$10.6 million invested in four Philippine venture capital funds, including H&Q Philippine Ventures I and H&Q Philippine Ventures II (predecessor funds to H&Q PV3), Walden Asian Bank Ayala Ventures, and All Asia Growth Ventures I. IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries. IBRD IDA IFC MIGA ICSID