IFPT SELLS UNITS FOR U.S. $360,000,000

Exclusive Canadian Placement Provides Unique Asset Class for Canadian Pension and Endowment Funds

Montreal, Quebec – December 12, 2001 – IFPT Management Inc., the manager of International Finance Participation Trust, announced today that the Trust has accepted subscriptions from a number of Canada’s largest pension funds for U.S. $360,000,000 (about Cdn $564,000,000) of Trust units. The Trust expects to draw down and invest the subscription proceeds over the next eighteen months.

The Trust is a vehicle for conservative diversification in international credit markets. The Trust offers Canadian pension and endowment funds a unique opportunity to invest in a portfolio of broadly diversified private sector loans made by a number of international financial institutions (“IFIs”) such as International Finance Corporation of Washington, D.C. The loans are made to corporations operating in emerging markets, which are normally secured by the project or other assets of the borrower and other protections negotiated by IFIs. In most cases, the loans are entitled to the “preferred creditor status” of the IFIs – a status, which, among other things, entitles the lender to preferential access to foreign exchange in the event of an exchange crisis.

Trust unitholders receive their proportionate benefit of loan interests acquired by the Trust through their holdings of Trust units. Eventhoughtheunitsrepresentinterestinanon- Canadian loan portfolio, they do not count against the 30% “foreign property” limit applicable to Canadian pension funds under the Income Tax Act (Canada). The loans tend to have a low correlation to traditional investments of Canadian institutional investors. In committing to loans, the Trust will target an average spread of 250 basis points over the London Interbank Offered Rate.

The Trust Manager, IFPT Management Inc., specializes in international project finance. It was established by Chief Executive Officer Carl Otto, with the support of International Financial Centre Montreal. Its senior staff includes Chief Operating Officer David Creighton an early member of the project team with more than eighteen years experience in the international investment field, and Vice President Portfolio Management Tony Iskarpatyoti, who has twenty-three years experience in the developing country investments, most recently with the World Bank and IFC.

“The key to the success of the Trust was developing a simple and tax-efficient structure that would fit in with the conservative investment practices of pension fund managers”, said CEO Carl Otto. “The Trust offers Canadian funds an attractive investment return and broad diversification in emerging markets.”

For more information, contact:
David Creighton
IFPT Management Inc.
Tel No: (514) 286-5015
Fax No: (514) 286-6145
URL: http://www.ifpt.com