Asia Pacific Resources Ltd.: Appointment Of Lead Arranger For Somboon Project Financing.Business Editors VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--May 18, 2000 Following extensive discussions with a number of major international project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. banks, Asia Pacific Potash Corp. (APPC (Advanced Program-to-Program Communications) A high-level protocol from IBM that allows one program to interact with another across the network. It supports client/server and distributed computing by providing a common programming interface on all IBM platforms. )(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :APQCF)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :APQ APQ Accordo di Programma Quadro APQ Association des Paraplégiques du Québec APQ Association des Pathologistes du Québec APQ Art Pepper Quartet (jazz group) APQ Armaments Planning Questionnaire APQ Advanced Placement Question .) is pleased to confirm the signing of a Mandate Letter appointing Bayerische Hypo-und Vereinsbank AG (HypoVereinsbank), as Advisor and Lead Arranger Lead arranger The senior tier of arranger for the Somboon potash project debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . The projected debt financing requirements, assuming a 70/30 debt/equity ratio, are estimated at approximately US$ 450 million, for the construction of the underground mine, a 2 mtpa processing facility and new export port and railroad maintenance facilities. HypoVereinsbank, Germany's second largest bank is a sought after partner in the field of project finance. HypoVereinsbank has an impressive track record and is the number one commercial bank providing project finance in Europe and the number eight provider worldwide for mining projects. The bank is currently managing over 300 projects and as an experienced arranger and advisor has extensive know-how and expertise from which the Somboon project financing will benefit. A dedicated team of HypoVereinsbank's project finance specialists, based in Munich and Singapore, will work closely with APPC management to conclude the bank's final project evaluation. This will lead to the development of the most appropriate financial structure for the limited - recourse project financing. It is anticipated that Hypo Vereinsbank will form a small consortium of international banks to underwrite the project loan. Because of their close cooperation with large multilateral organizations, HypoVereinsbank will be able to assist in arranging multilateral loans. Major international financial institutions and export credit agencies have already expressed interest in participating in the project financing. APPC believes that the appointment of HypoVereinsbank is a major step towards securing the financing necessary for the construction of the Somboon potash project, located near Udon Thani in northeast Thailand. Gerald D. Wright, Chief Executive Officer |
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