Regional: REG: DARBY ASIA MEZZANINE FUND II

Nonsovereign Project | 39925-014

Summary

ADB committed to make equity investment of up to US$20 million in Darby Asia Mezzanine Fund II, or 25% of the Fund's equity capital, whichever is less. The Fund will invest in mezzanine opportunities within Asia primarily in the People's Republic of China (PRC), India, Indonesia, Republic of Korea, Malaysia, Philippines, and Thailand.

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Project Name REG: DARBY ASIA MEZZANINE FUND II
Project Number 39925-014
Borrower/Company DARBY ASIA MEZZANINE FUND II
Country Regional
Location Asia
Approval Number 7247
Type or Modality of Assistance
7247 Investment Fund-Equity Investment-LP USD 20.00 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector Finance - Infrastructure finance and investment funds
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Catherine C. Pacifico
Project Sponsor(s)
Description ADB committed to make equity investment of up to US$20 million in Darby Asia Mezzanine Fund II, or 25% of the Fund's equity capital, whichever is less. The Fund will invest in mezzanine opportunities within Asia primarily in the People's Republic of China (PRC), India, Indonesia, Republic of Korea, Malaysia, Philippines, and Thailand.
Objectives and Scope The primary goals for the Fund are to (i) help develop deeper and more liquid capital markets in ADB developing member countries (DMCs) through support of a nascent mezzanine asset class in the region; (ii) increase expansion capital financing to mid-market companies with significant emphasis on the infrastructure sector; and (iii) promote the growth and sustainability of Asia's emerging private equity markets by supporting their management team in expanding their investment operations.
Linkage to Country/Regional Strategy In implementing the country strategy and programs (CSPs), ADB's private sector operations must address the challenges of immature capital markets in ADB's DMCs, which has created a significant gap for infrastructure companies, as well as mid-market entrepreneurial companies seeking long-term finance. The resulting lack of long-term finance hampers private sector development, creating a unique opportunity for untapped asset classes such as mezzanine finance. ADB can catalyze entrepreneurial finance and foster the development of the private equity industry by supporting the development of a nascent asset class in ADB's DMCs.
Status of Development Objectives By providing financing to the Fund, ADB would (i) support infrastructure projects in ADB's DMCs; (ii) support the continuing development of an underserved segment of the private equity industry; (iii) promote the development of deeper, more liquid, and more diversified capital markets in Asia; (iv) transfer and build mezzanin expertise in DMCs; (v) mobilize investment in the real economy; and (vi) support a proven fund manager to ensure the growth and sustainability of Asia's emerging private equity markets.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Fund Manager is developing an environmental policy and environmental management system (EMS) for the Fund in cooperation with ADB. No involuntary resettlement is foreseen in relation to any investments by the Fund. No investments by the Fund are expected to impact indigenous peoples.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 04 Aug 2005
Due Diligence 14 Jul 2006
Credit Committee Meeting 04 Oct 2006
Approval 10 Nov 2006
PDS Creation Date 11 Dec 2006
Last PDS Update 29 Sep 2014
Title Document Type Document Date
Proposed Equity Investment Darby Asia Mezzanine Fund II Reports and Recommendations of the President Oct 2006

Safeguard Documents

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Evaluation Documents

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