Regional : REG: AIF CAPITAL ASIA III

Nonsovereign Project | 39924-014

ADB committed to make an equity investment of up to US$30 million in AIF Capital III, LP not to exceed a 25% stake, or result in ADB being the largest investor in the Fund. The Fund's manager is AIF Capital Limited, one of Asia's largest independent private equity firms, overseeing $1 billion in capital. Based in Hong Kong PRC, it has over ten years of private equity investing experience in Asia.

Project Details

  • Project Officer
    Pacifico, Catherine C.
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Regional
  • Modality
  • Sector
    • Finance
Project Name REG: AIF CAPITAL ASIA III
Project Number 39924-014
Borrower / Company AIF CAPITAL ASIA III, LP
Country / Economy Regional
Location Regional
Type or Modality of Assistance
7230 Equity Ordinary capital resources USD 30.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds
Gender
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Investment Funds & Special Initiatives Div
Responsible ADB Officer Pacifico, Catherine C.
Project Sponsor(s)
Description ADB committed to make an equity investment of up to US$30 million in AIF Capital III, LP not to exceed a 25% stake, or result in ADB being the largest investor in the Fund. The Fund's manager is AIF Capital Limited, one of Asia's largest independent private equity firms, overseeing $1 billion in capital. Based in Hong Kong PRC, it has over ten years of private equity investing experience in Asia.
Objectives and Scope The Fund targets companies benefitting from Asia's economic growth, with a focus on two key trends: (i) further integration of Asia into the global supply chain, and (ii) rising domestic demand driven by the emerging Asian middle class.
Status of Development Objectives The Fund will help promote the growth of the private equity industry in the middle market segment. It can increase the amount of bank lending to businesses by (a) injecting equity to improve the balance sheet and borrowing power of the portfolio company, and (b) completing separate due diligence on the business opportunity to address any concerns the bank may have on the viability. The Fund Manager's ability to add value in terms of instilling best practices in corporate governance creates a demonstration effect, in which the standards of a given industry are improved.
Linkage to Country/Regional Strategy ADB's country strategy for the People's Republic of China (PRC) recommends making markets work better by developing an enabling environment for the private sector; promoting good governance, the rule of law, and transparent regulation; supporting financial sector reforms; and expanding ADB's private sector operations. For India, ADB's country strategy and program 2003-2006 states that the private sector has a leading role to play in achieving growth targets. The strategy focuses on promoting an enabling environment for private sector development through (i) financial sector interventions to improve financial intermediation and resource mobilization; (ii) policy reforms to remove impediments to private investment-domestic and foreign; (iii) investment in public infrastructure, which also facilitates private investment; (iv) public-private partnerships; and (v) investments in private sector projects. For Indonesia, the country strategy and program (2002-2005) highlights the role of business investment in accelerating Indonesia's growth path and pays special attention to fostering a vibrant and competitive private sector.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Fund Manager already possesses experience with respect to adhering to ADB's social and environmental safeguard policies through its existing funds. The Fund Manager has adopted an environment management system.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 04 Aug 2005
Credit Committee Meeting 11 Apr 2006
Approval 31 May 2006
PDS Creation Date 18 Jul 2006
Last PDS Update 27 Sep 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
AIF Capital Asia III: Extended Annual Review Report Extended Annual Review Reports Nov 2019
Proposed Equity Investment in AIF Capital Asia III Reports and Recommendations of the President Apr 2006

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.