Nonsovereign Project | 39931-014 Status: Approved



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Project Number 39931-014
Country Regional
Location India, Sri Lanka, Bangladesh
Approval Number 7233
Type or Modality of Assistance
7233 Investment Fund-Equity Investment-LLC USD 17.50 million Committed
Strategic Agendas Environmentally sustainable growth
Regional integration
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 Private Sector Investment Funds & Special Initiatives Div
Responsible ADB Officer Janette A. Hall
Project Sponsor(s) Aureos South Asia Managers Limited
Objectives and Scope The Fund provides financing to SMEs that demonstrate potential for above-average growth rates and the capability to expand regionally, with the objective of earning a risk-adjusted return over 3 to 5 years. The specific target for investments are SMEs in South Asia primarily India, Sri Lanka and Bangladesh. Investments include expansion, management buyout, restructuring, change of control transaction, consolidation and several investments in start-up and early stage companies.
Linkage to Country/Regional Strategy ADB's investment in the Fund is consistent with the country strategy and program, and complementary to ADB initiatives. It will directly contribute to mobilizing resources and improving financial intermediation and investment in private sector projects. ADB's equity financing of SMEs is a part of a comprehensive approach by ADB, through policy dialogue, to improve the local regulatory and legal environment for SMEs and the private equity industry as well as the efficiency of the financial sector.
Status of Development Objectives By providing financing for this transaction, ADB will achieve the following development objectives: (i) mobilize long-term capital in the form of private equity for SMEs in South Asia; (ii) diversify the sources of finance available to SMEs; (iii) demonstrate to the private sector that investment in entrepreneurial SMEs in South Asia can be commercially attractive; (iv) provide management advice to SMEs in financial planning, business expansion strategies, human resources development, and implementation of international standards of corporate governance; (v) create sustainable employment in the SME sector in South Asia; (vi) stimulate private sector development; and (vii) support the development and growth of South Asia's private equity and portfolio management professionals.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects All companies in which the Fund invests will be required to comply with national environmental laws and regulations as well as ADB's environmental and social safeguard policies. Aureos has established clear guidelines, processes, and principles for environmental, social, and health and safety issues that are integrated throughout the investment process. The Fund had developed an environmental management system, and is committed to its implementation.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 30 Sep 2005
Due Diligence 27 Jan 2006
Credit Committee Meeting 22 Mar 2006
Approval 08 Jun 2006
PDS Creation Date 20 Mar 2006
Last PDS Update 30 Sep 2014
Title Document Type Document Date
Proposed Equity Investment Aureos South Asia Fund Reports and Recommendations of the President Apr 2006

Safeguard Documents

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Evaluation Documents

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Related Publications

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